HOA Management Blog

In many areas, flooding is the most common and costly natural disaster—and it can happen in your homeowners association. Just one inch of water in a home can cost thousands of dollars in cleanup and replacement costs, including drywall, baseboards, floor coverings and furniture. You may think you're covered, but many insurance policies do not cover flooding.

Can’t we all just get along? In a perfect world, yes, but in a homeowners association or any neighborhood for that matter, people are going to do things that either drive you crazy or are just outright rude. But you don’t have to be that neighbor. Instead, make it a point to be a good neighbor when a maintenance or repair issue comes up. There are two sides to this. One is having an open mind when a neighbor comes to you. The second is knowing some proper etiquette when you have to approach a neighbor. One common issue that can lead to disputes is fencing.

As an HOA board member, you should know what homeowners association documents your members are entitled to review. Association members are welcome to read official association documents. There’s nothing secret about the business of the association. In fact, you should already have copies of key documents like the bylaws or rules readily available.

Does your homeowners association pay or compensate the Board of Directors? I recently learned of an HOA that compensated its board members for “volunteering.” Each month the board members would receive a credit on their accounts for their monthly assessments. The Board collectively felt that it was doing all the work and that it should be compensated for the time.

All meetings of the HOA board, excluding executive sessions, are open meetings. A required part of every homeowners association Board meeting is the homeowners forum (also referred to as “open forum” or “open comments to the Board”). Homeowner forums are typically held at the beginning or end of meetings, and any owner attending a meeting has the opportunity to address the Board and may do so during the homeowner forum portion of the meeting.

There is no way to sugar-coat a special assessment. Receiving a notice that you owe more money to your homeowners association can not only put a damper on your day but also a dent in your wallet, both of which the board is sympathetic to. In a perfect world, there would never be a need for special assessments—or any other type of assessments for that matter—but sadly; they are sometimes a necessary evil.

For homeowners associations with a January through December budget year, the time clock is ticking to develop a budget for the upcoming year and have the budget approved in time for the association’s year-end mailing. A budget committee can be comprised of HOA board members, members of your community association or a combination of both. How does the budget committee work and who serves on it? 

If you're part of a homeowners association in California, the time to send out your budget and disclosure package is 30 to 90 days before your new fiscal year begins. For those who have a January to December fiscal year, now is the time! Please see the following suggestions to get you over the hump.

As a new or current HOA board member you may often hear terms that you’re unfamiliar with. It’s important to ask questions and stay educated when something is unclear, and nothing can be more convoluted than financial jargon.

Do you remember receiving the covenants, conditions and restrictions (CC&Rs) when you moved into the Association? Do you know that they are very important to you as the homeowner? Have you taken a look at these documents lately? If not, now is a great time to brush up on the do’s and don’ts of your community. There is no time like the present to make sure you are in compliance.