Many board members want to serve their communities but don’t always know what is involved in HOA management. This week, we’ll share an overview of the roles, duties, and responsibilities associated with being a new director.

In an HOA, all board members have an individual role with different responsibilities. The president of an HOA’s main purpose is to manage the board itself and make sure everyone is acting within the association’s governing documents.

An HOA’s vice president performs many of the same functions as the president’s role. When the president is not present, the vice president takes the president’s leadership position.

The treasurer assumes responsibility for the HOA’s funds and other financial records, and the secretary maintains meeting minutes and other official records. Sometimes, depending on the size of the HOA, there could be several board members in the same role – i.e., multiple treasurers, secretaries, etc.; however, the essential duties remain the same.

Beyond the parliamentary procedural expectations, board members have two primary duties in association’s management: legal responsibilities and financial responsibilites.

The legal duties a board member has to the members of their association are specific:

  • Compliance with federal and state laws. Board members should always review local, state, and federal laws before passing any rules or sending bylaws to homeowners for approval.
  • Enforce HOA documents. Board members must constantly monitor the association and establish, publicize, or enforce rules as needed.
  • Communicate to the members of the association. To adequately communicate necessary information to the HOA’s members, board members must attend and participate in meetings and inform homeowners of the decisions reached at those meetings.

Additionally, board members have fiscal duties they must perform to manage their community well.  These fiscal duties are comprised of protective financial measures and regular housekeeping matters.

The importance of reserve studies is an essential protective measure. While performing these studies are crucial for maintaining the financial health of your association, there are other protective financial measures you can take:

  • Always make sure they the association has a well-qualified attorney, auditor, and insurance agent. Professional advice is valuable and necessary to the association.
  • Ensure there is adequate insurance coverage. Often, the bylaws and local governmental statutes will require a certain level of insurance, but it’s always good to check with other professionals to make sure the insurance board members are providing is sufficient for the true needs of the association.

Protecting the financial health of your association is often one of the hardest aspects of HOA management, as it requires paying up front to save money later. However, taking these protective measures makes financial duties much easier to manage.

Some of the regular, day-to-day financial duties of board members includes developing a workable budget, establishing sound fiscal policies, and maintaining accurate records that make it easy to keep up with cash flow. Determining an accurate assessment rate and collecting assessments is another major board duty. While tedious, these practices are often the “nuts and bolts” of association management.

While a full breakdown of the board’s duties may feel overwhelming at times, it is what we at Spectrum Association Management in Dallas, are here to help you with. By reviewing the information above, new board members can get a better understanding of how to fulfill their role within the association. We appreciate our board members and are happy to answer any questions you may have. For those not located in Dallas, we also have locations in San Antonio, Houston, Austin, and Phoenix.