It’s important for an HOA board to work on ending the year well. It doesn’t matter if your homeowners association plans around the fiscal or calendar year, the questions below apply to both. It’s not too late to ask yourself some of these questions and make a resolution to do these things in the New Year to come.
Many HOA boards think they have it all together and can easily manage the homeowners association on their own. But can they really? While there are various factors involved when it comes to whether or not a homeowners association can successfully be self-managed – such as how involved the board members are, the size of the Association, etc. – ultimately an HOA puts itself at risk if it tries to self-manage all the components that are part of the Association. Instead of rolling the dice on hoping for the best for your Association, learn what seven of those risks are and then consider where your Association stands.
All members of the HOA board are responsible for the Association’s overall financial health; but the treasurer has specific duties to protect the Association’s assets. These duties—and the authority to exercise them—are found in the homeowners association’s governing documents and also in state laws. It’s a big responsibility, but fortunately an HOA manager can help with many of the details.
Associations have rules to preserve the appearance of the community, protect the value of the common property and individual homes, and make the neighborhood more harmonious for all. What you may not know is that in some rare instances, the homeowners association will waive some rules and regulations.
In homeowner’s associations, you and every board member are considered a fiduciary and are duty bound to act in the best interests of all residents, not your own best interests.
Are you reviewing and updating your homeowner’s association’s strategic plan?
A strategic plan outlines priorities and projects for the immediate future and for years to come. It can accommodate revisions as changing circumstances dictate—without conflicting with the vision behind its creation. It also helps determine what the year’s budget will include and suggests what future ones might feature.
The California Drought is bringing more than just water woes. Some members of homeowners associations are having a harder time conserving water than would be expected, especially in the area of watering landscapes.
Do any owners in your homeowners association rent out their homes? What are the Association’s obligations to those renters? What are their rights in the Association? Can you control how many units in the HOA can be rented?
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.