HOA Governance: What Roles Does an Owner Play?

When you think about becoming an owner of property within an HOA, you might wonder about HOA governance, what roles does an owner play? You may wonder if an HOA property is right for you. Rest assured, it is, and we have the following four reasons why.

Representative democracy in action. Owners in an HOA community have certain roles and responsibilities set out for them in the HOA governing documents. One of those roles is to help choose the board members who will represent your interests in the HOA. You can submit names of people you think would make good board members. Most important, however, you may appear at the board meeting to vote on the board members of your choice. It is representative democracy at its most local level.

Paying Assessments. HOA dues, or assessments, are a necessary responsibility in an owner's HOA life. Dues help cover maintenance, improvements, and repair costs like trash removal, landscaping, snow removal, an arborist for the upkeep of trees and shrubs, sidewalk repair, swimming pools, upkeep of common areas like the grounds or parking lots, utility repairs like water pipes that run through the common grounds, as well as office staff salaries, lawyers fees for collection actions and other issues. In some cases, the HOA fees cover insurance premiums for damage to the outside of the building. Some HOAs go so far as to take responsibility for payment of utilities like water and gas. Some HOAs take responsibility for painting the buildings while owners must maintain their private fences.

The amount of HOA fees depends on what services the HOA provides. The average HOA fee is around $200, but in some areas, fees reach as high as $700. It's also important to note that if your HOA's reserve fund is not managed appropriately, or if your community has unexpected expenses one year (such as back-to-back blizzards which increase the snow removal significantly), you may have to pay increased HOA fees until the community repays the reserve. 

Following restrictions in HOA rules. Each HOA board has the right to make covenants, conditions, and restrictions (known as CCRs) that cover resident behavior as well as the architecture for the community. Some of the more common HOA restrictions are:

• the height of fences no higher than 8 feet,
• the paint for the fences and buildings must conform to pre-approved colors,
• no solar panels,
• the color of window treatments,
• the type of trim in garden areas,
• pet restrictions by number, breed, and size and almost always have rules with respect to cleaning up after pets,
• no clothes lines,
• no for sale signs,
• no smoking in common areas,
• no individual unit swimming pools,
• keeping noise levels low,
• clearing clutter away from patios.

Public fighting, verbal abuse, drugs and public drunkenness are behavioral issues that could lead to individual penalties or police action.

Becoming a board member. Not only do home owners choose their board members, but they also run for office. Most HOAs are non-profit corporations and owners become a member of the HOA when they buy one of the homes and accept the HOA CCRs. Generally, like most non-profit corporations, a board of directors (or trustees) runs the HOA, and the governing documents specify the number of board members who serve in that capacity.

Homeowners interested in serving on the board should obtain copies of the HOAs governing documents from either their management company or the HOA attorney. State corporation laws that apply to non-profit organizations may impact the board's duties and responsibilities. If the HOA has an attorney, he may point you in the right direction. If the HOA has no attorney, then research the relevant state laws online. Do your due diligence to learn what the law requires of board members.

To learn what qualities make good HOA board members, read HOAleader.com's article entitled "10 Traits of Successful HOA Board Members."