Being an HOA board member comes with several responsibilities. To fulfill those responsibilities, it is first important to understand what they are. Once they know what is expected of them and what limitations they have, board members can effectively govern and manage the community.
What is an HOA Board Member?
A board member is an elected leader of an HOA or condo association. Just like any other organization, HOAs rely on a board of directors to make decisions and manage the community. These board members keep the neighborhood well-maintained and well-funded.
What are the Responsibilities of HOA Board Members?
While specific duties can vary from one community to another, most board members share a general set of obligations. Here are the key homeowners association board of directors responsibilities.
1. Adhere to the CC&Rs and Bylaws
Board members must comply with their association’s governing documents. These documents include the community plat, the articles of incorporation, the CC&Rs, the bylaws, and the operating rules.
2. Maintain Common Areas
Common area maintenance is a chief responsibility of HOA board members. While individual directors don’t have to perform inspections or repairs themselves, the board is responsible for hiring contractors to do so.
3. Enforce the Rules
Residents are obligated to follow the community’s rules. These include noise restrictions, pet policies, architectural standards, and property maintenance, among other things.
The board’s job is to conduct routine inspections for violations and adhere to due process. In Maryland, this means providing notice and an opportunity to be heard before imposing penalties (Section 11B-111.10 for HOAs and Section 11-113 for condos).
4. Collect Dues
Board members are responsible for setting and collecting owner dues. These dues fund the association’s day-to-day expenses. To calculate dues, the board must anticipate costs by analyzing historical data and current market trends.
If dues go unpaid, the board must engage in collection efforts. More often than not, strategies involve imposing late fees or interest charges, suspending privileges, taking legal action, hiring a collection agency, placing a lien, and even foreclosing on a home.
5. Plan the Reserves
Another one of the HOA board member duties is to manage the reserves. Contributions come from homeowner dues. Without reserves, an association would have no way to cover the cost of capital repairs and replacements when assets reach the end of their useful lives.
6. Manage Finances
Board members must manage the association’s finances. Tasks include budgeting, accounting, financial reporting, audit facilitation, and tax preparation. More often than not, boards seek professional help to carry out these duties.
7. Hire Vendors
Vendors provide valuable services to the association. Examples include landscaping, maintenance, insurance, and snow removal. Board members must solicit multiple bids, compare proposals, and negotiate terms. It is also the board’s job to evaluate individual vendor performance.
8. Communicate With Residents
Board members must keep an open line of communication with residents. This means sending notices, newsletters, emails, and more. It is also important to maintain transparency by keeping residents informed and making records available for examination.
9. Resolve Disputes
Conflicts are bound to arise in a diverse neighborhood. Board members must keep the peace by resolving disputes through internal processes. If internal efforts don’t work, the board can encourage alternative dispute resolution methods.
What are the Fiduciary Duties of HOA Board Members?
In an HOA or condominium, board members must fulfill certain fiduciary duties. Breaching these duties can result in liability.
1. Duty of Care
Board members must make informed, reasonable, and prudent decisions. They must do their due diligence, including attending meetings, reviewing financial reports, and preparing for decision-making. They must ask questions, request expert opinions, and investigate issues before voting.
In general, board members are protected from personal liability through the Business Judgment Rule. That said, boards must make decisions in good faith and within the scope of their authority.
2. Duty of Loyalty
This duty requires undivided allegiance to the association, prioritizing the community’s welfare over personal gain. Board members can’t use their position to secure favorable contracts for their own business or family members. Directors must also disclose any potential conflicts of interest and recuse themselves from the discussion and subsequent vote.
3. Duty of Obedience
Under this duty, board members must comply with the law and the association’s governing documents. That means following the association’s established rules and enforcing them consistently. They must also promote transparency and act within the scope of their legal authority.
HOA Board Positions and What They Do
An HOA or condo board typically consists of a president, a vice president, a secretary, and a treasurer. There are also non-officer roles. Here are the HOA board members responsibilities for each position.
- President. The president is responsible for overseeing the association. They preside over meetings, facilitate discussions, and guide decision-making.
- Vice President. The VP assumes the president’s role in case the latter is absent or otherwise indisposed. They might also oversee projects or specific aspects of operations, depending on what is delegated to them.
- Secretary. The secretary is in charge of all documentation. They record meeting minutes, organize documents, update records, and communicate with residents through notices or other methods.
- Treasurer. The treasurer manages the association’s finances. They lead the charge in budget preparation, dues collection, financial reporting, and reserve planning.
- Non-Officer Directors. Also known as “Directors-at-Large,” non-officer members vote on board decisions, lead or join committees, liaise with residents or vendors, and oversee special projects. They also serve as emergency backups if an officer is unable to perform their duties, steps down, or is removed.
HOA Board Member FAQs
Here are the answers to frequently asked questions about HOA board members.
Do HOA board members get paid?
In general, HOA board members do not get paid. Board members are volunteers, so they should not receive compensation or any form of gifts in exchange for their service. Most governing documents also prohibit paying board members or waiving their dues because of their position.
Compensating board members can interfere with their volunteer status. This may render certain liability protections null and void. Additionally, it can cause problems with the association’s insurance.
How many board members should an HOA have?
State laws and the governing documents dictate the number of board members an HOA or condominium must have. In general, most communities have 3 to 7 board members, depending on size and complexity. Larger associations often benefit from more directors.
Additionally, it is a good idea to have an odd number of directors. This will prevent tie votes, which can stall operations. It is best to check the association’s bylaws for guidance.
Do HOA board members have term limits?
As with the number of directors, term limits depend on state laws and the governing documents. The bylaws, in particular, should outline the term limits of board members. Some have one-year term limits, while others have two- or four-year term limits.
Can you remove HOA board members?
Yes, state laws and most bylaws allow homeowners to remove board members. The process usually involves petitioning to hold a special meeting with the express purpose of voting a board member out. Once the seat is vacant, the remaining board members can appoint someone or hold an election to fill the position.
Can spouses be on the HOA board at the same time?
Whether spouses can simultaneously serve as board members depends on state law and the governing documents. In some communities, board members must be homeowners, meaning their names must appear on the title. This can create problems for spouses.
In other associations, the bylaws are clear in that no two members of the same household may serve on the board at the same time. This prevents decisions from consistently tipping in a single household’s favor.
Getting Help
Becoming an HOA board member requires an in-depth understanding of the duties and limitations that come with the role. It is important to educate candidates and new leaders on what tasks they must fulfill. Of course, hiring an HOA management company always helps, as professionals can guide the board and take over most of the administrative work.
Majerle Management, Inc. provides management services to HOAs and condo associations in Maryland. Call us today at (301) 220-1850 or contact us online to get started!
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