Becoming a new board member of a Homeowners Association (HOA) board is both an honor and a responsibility. As a board member, you're entrusted with the stewardship of your community, ensuring its smooth operation and the well-being of its members and residents. Here are some things that will help you to be an effective and informed board member.
Most HOA boards have a president, vice president, secretary, and treasurer. These roles are referred to as officers. While the membership votes to elect board members, the board decides among itself who will fulfill officer roles.
Understanding your community's financial situation is essential for making informed decisions. Familiarize yourself with the budget, reserve funds, income statements, and expenditure reports. Regularly reviewing these documents helps ensure financial stability and transparency. It's also crucial to understand the parameters specified by the association’s governing documents and the process for setting and collecting assessments. Review the community's policies on delinquencies and collections at intervals to ensure homeowners understand them and they are implemented consistently.
The governing documents are the backbone of your HOA, providing the basis of authority for the rules and regulations that guide your community. These typically include the articles of incorporation, plat map, bylaws, Covenants, Conditions, and Restrictions (CC&Rs), and rules and regulations. Familiarize yourself with these documents to understand voting requirements, board responsibilities, and homeowner obligations. This knowledge ensures you can make decisions that are compliant with the governing documents. When deliberating any question or action, always check the governing documents first.
Transparent communication is key to building trust and fostering a collaborative environment within your community. Regularly update homeowners about board decisions, upcoming meetings, and important projects through newsletters, emails, or a community website. It's equally important to listen to residents' opinions and concerns. Encouraging feedback and addressing issues promptly helps maintain a positive relationship between the board and the community.
Transparent communication is key to building trust and fostering a collaborative environment within your community. Regularly update homeowners about board decisions, upcoming meetings, and important projects through newsletters, emails, or a community website. It's equally important to listen to residents' opinions and concerns. Encouraging feedback and addressing issues promptly helps maintain a positive relationship between the board and the community.
Understanding Proper Meeting Procedures
Effective board meetings are well-organized and productive. Here’s what you need to know:
Board members serve the association and the community's best interest. This means exercising care, loyalty, and good faith in all board activities. One important aspect of this duty is knowing when to utilize outside professionals:
Becoming a new HOA board member is a significant responsibility, but you can positively impact your community with the right knowledge and approach. By understanding your roles and duties, mastering the community's financials, knowing the governing documents, communicating transparently, following proper meeting procedures, and fulfilling your fiduciary duty, you will help ensure a well-managed and harmonious community.
About Community Association Management Services
In business since 1991, CAMS is North and South Carolina’s premier community management company. With experienced local managers in each of its nine regions, CAMS provides innovative solutions to the community associations it serves. Additionally, CAMS was featured on Inc. Magazine’s 2022 Inc. 5000 list of the fastest-growing private companies in America. To learn more, visit www.camsmgt.com/choose-cams.