Roughly 75 million Americans reside in a homeowners' association. HOAs offer significant benefits, such as property value preservation and a greater sense of belonging, to members.
At the heart of these communities are HOA boards, which play a crucial role in how they're managed. Find a dysfunctional HOA, and most of the time; you'll trace the source of its problems to an ineffective board.
Having a clear understanding of the roles and responsibilities of an HOA board will help you embrace the important, selfless work the members of your HOA's board do. This guide outlines the core functions of these boards.
Defining the HOA's Mission
An HOA is a community of people who have a greater goal beyond seeing their properties increase in value. Most HOAs aspire to be something more, a group of people who stand for something.
The HOA board is responsible for defining the mission of the community. It needs to be a mission that residents can rally behind. For example, if the vast majority of residents in an HOA are seniors, the mission could be to create a living community that makes senior living enjoyable.
Once the mission is clear, it's the board's job to spearhead the HOA community's march toward its mission.
Drawing HOA Bylaws
There are federal, state, and local laws that go a long way in ensuring our communities are safe and civil, but an HOA needs more than these laws. The laws of the land aren't going to prevent a homeowner from throwing loud parties or keeping pets that are a nuisance to neighbors.
This is where HOA bylaws step in, and it's the work of the board to make these rules and regulations. The board also enforces these rules in accordance with the community's regulations. For instance, if someone isn't paying HOA fees, the bylaws will have provisions on how to handle the matter.
Leading HOA Meetings
HOA meetings provide a platform for residents to air their views and contribute toward the betterment of the community. The board sets dates and agendas for these meetings and is responsible for ensuring active participation among all residents.
Managing HOA Finances
Every homeowner in an HOA pays a monthly or annual fee that's set by the board. These funds are used to maintain communal areas, pay service providers and workers, and meet the community's other financial obligations.
One of the key responsibilities of an HOA board is to ensure prudent management of these funds. There are cases of mismanagement and embezzlement, both of which can happen when a rogue board is in control.
The HOA Board Cannot Do It All
Summed up, an HOA board's main task is to steer the community in the right direction, ensuring everything is working as it should. At the end of the day, though, a board is not an HOA management company. A savvy HOA board outsources most administrative duties to a professional property management company like PMI Premier.
Serving the Dallas/Forth Worth area of Texas, PMI Premier is part of a property management company that has been in business for over 20 years. Our association management services will transform your HOA into an enviable community.
Contact us for more information!