Understanding How HOA Boards Make Decisions
An association’s board of directors makes many important and necessary decisions on behalf of their community association.
Generally, the board of directors is made up of elected individuals who reside within the community. However, during the development and sale period, members are usually appointed by the developer in the early days of the association's formation.
Whether appointed or elected, association’s board of directors ensures the association runs smoothly. Those decisions can look simple from the outside but are often much more complicated from the inside.
Associations often have to work within a complicated (sometimes conflicting) set of parameters from governing documents, city codes, state laws, and even federal laws.
Also, each association has a unique way of operating and unique challenges and amenities so the decision-making process will vary by community.
Keep reading to learn more.
Who Makes the Decisions in an Association?
The board of directors is entrusted with various responsibilities like financial planning, maintaining community amenities, enforcing the rules, etc.
The board of directors often has background or confidential information that homeowners do not have. So at times, the reasoning may not be apparent to homeowners, especially those not engaged frequently in the association.
Boards that communicate often and clearly usually have the best support from their homeowners.
What Responsibility Does the Board Have?
To understand the board of directors’ authority and responsibility, homeowners must read the community's governing documents.
But generally, the board is responsible for protecting the association's financial and physical assets (like a park), enforcing the deed restrictions, and acting in the community's best interests.
This means that the board of directors will make the day-to-day decisions, like what time to close the tennis courts, which landscaper to select, and the pool rules.
They will also have to make hard decisions like when to fine an owner violating the deed restrictions and ignoring warnings about an issue detrimental to the surrounding neighbors. After all, no one wants to fine their neighbors.
What Decisions Are by the Members?
- Again, governing documents vary greatly from association to association, and state law can impact these requirements. Generally, though, members of the association, the property owners within the community, must vote on some aspects of the required governance.
- Amending the covenants
Being on the association’s board of directors is a tough job with many responsibilities.
The decision-making process is often more complex than it may appear outside. Well-run associations will work hard to communicate the decisions being made and why they are in the association's best interest.
That is why investing in your association's most efficient and transparent software and communication tools is so essential.
To learn more about RealManage’s state-of-the-art tools, contact us for more information.