Important Items Your Board Should Review Every Year
There are many different responsibilities for every homeowners' association, and all the moving parts can lead to the board missing some critical tasks that should be reviewed annually. You want to account for as many details as possible when preparing for the new year, as it will best prepare you and your community for success. Here is a list of some things your HOA board should review before the new year rolls around.
You want to make sure that your HOA's governing documents get updated with any new rules or regulations that have to get implemented over the past year. Also, make sure that the documents are filed correctly and are accessible both physically and on your HOA's website.
Take the time to review the prices of the different HOA necessities such as vendors, insurance, and utilities to be surprised by your expenses in the coming year. Also, be sure to schedule next year's budget approval date. This way, you will have an appropriate amount of time to review everything you need regarding the budget.
Emergency Action Plan
Check over your emergency action plan and make sure it is still up to date and effective for your community. Then, don't hesitate to make any changes that can help serve your community better.
Audit & Tax Plans
Even though the tax filing date maybe a few months away, it doesn't hurt to reach out to a professional as soon as possible. In doing so, you'll be able to schedule an exact date to complete your taxes and be informed of any changes that may relate to your HOA board. In addition, this plan will make you more prepared when the time comes to file your taxes.
Poorly planned schedules may lead to poor attendance. Mark down any annual, board, or committee meetings on a calendar, so people can make plans to attend ahead of time. Also, make sure to account for seasonal adjustments and know when any meeting notifications will need to get sent.
Schedule Special Events
Creating and communicating a unique event calendar may help increase both attendance and awareness for your HOA. This calendar should also note any office closures on account of holidays on it.
Review Reserve Account
You don't want a disaster to happen, only to turn to your reserve funds and see you don't have enough money for repairs. Be sure to check your reserves and make sure there are enough funds for any incident. Also, review association and state laws to ensure your reserve studies get completed in the proper time frame.
Schedule Next Year's Office Elections
Board elections need to be transparent and occur regularly to build confidence and trust in your HOA board. Make sure to publicize the election date so that your fellow homeowners have the chance to vote in the election and let their voices get heard.
Review Insurance Policies
Check that you have made all the needed insurance payments for the year. See if there are any premium increases or additional risks that you may have to consider, and make sure you have enough coverage to be HOA compliant.
You want to make sure that any laws or ordinances that may impact your community are made clear to your fellow homeowners. Be sure to make whatever adjustments are necessary to guarantee compliance, and check with a lawyer if any additional clarification is required.
Update Your Written Plan
It is good practice for an HOA to have a written plan that gives them attainable goals for the future. Some of these goals can be as little as 1-3 months away, while you can also have long-term goals of 5 years or more. Be sure to review your plan and make any necessary updates to it.