The HOA board of directors functions as the leaders of a homeowners association or condo community. These board members are responsible for managing the association. Homeowners should understand what these board members do and what it takes to become one.
Who Runs the HOA?
Every homeowners association is led by a board of directors, otherwise known as the HOA board. The members of this board are volunteer homeowners elected by the membership. In some cases, vacancies on the board can be filled by appointment.
Who are the HOA Board of Directors?
The HOA board of directors are the leaders of the community. They make decisions about the operations and management of the association. They hold and attend board meetings, which homeowners can also attend.
Here is a quick breakdown of the responsibilities of the HOA board of directors:
- Enforcing community rules and regulations
- Maintaining common areas and amenities
- Managing the HOA budget and finances
- Collecting dues and assessments
- Hiring and overseeing vendors and contractors
- Organizing and leading board meetings
- Communicating with homeowners
- Handling disputes and rule violations
- Ensuring compliance with federal, state, and local laws
- Updating and amending governing documents
- Maintaining HOA insurance policies
- Planning for long-term maintenance and reserves
- Reviewing and approving architectural requests
- Keeping records of board decisions and financials
- Representing the community’s best interests
How Many Board Members Should an HOA Board Have?
The number of board members an HOA must have depends on state laws and the governing documents. For many HOAs, the number is 3, 5, or 7. An odd number is ideal to avoid ties in decision-making votes.
Condo associations and HOAs should check their bylaws for guidance on this matter. That said, in Illinois, both the Common Interest Community Act and the Condominium Property Act state that the board must elect a president, a secretary, and a treasurer. With this in mind, there should be at least three (3) board members.
The Illinois General Not For Profit Corporation Act states that a corporation must have at least three (3) directors. If an HOA is organized as a nonprofit corporation, this may apply to them.
What are the HOA Board Positions?
Within an HOA board of directors, there are officers and non-officers. Officers have specific duties and roles to fill, whereas non-officers don’t. The main HOA officer positions are as follows: the president, vice president, secretary, and treasurer.
HOA President
What does the HOA president do? The president is the leader of the pack and makes the final call in tie votes (if any).
They preside over meetings, delegate responsibilities and tasks to other board members, and serve as one of the signatories in financial transactions together with the treasurer.
HOA Vice President
What does the HOA vice president do? The vice president assumes the role of the president when the latter can’t do so. For this reason, the VP needs to know how the role of the president works. Other than that, the VP takes on any responsibilities assigned to them.
HOA Secretary
What does the HOA secretary do? The secretary is in charge of all documentation. They take the minutes of the meeting and distribute all pertinent documents or records.
HOA Treasurer
What does the HOA treasurer do? The treasurer handles all financial matters of the association.
They are in charge of collecting dues and assessments, keeping accounting records, disbursing funds, and preparing financial reports.
Do HOA Board Members Get Paid?
In general, HOA board members are not paid. They are volunteers, so they don’t receive compensation or fee discounts in exchange for their services.
In Illinois, there is no explicit prohibition against paying board members. If an association wishes to pay its board members, the governing documents must expressly permit it This is according to 765 ILCS 160/1-25 (for HOAs) and 765 ILCS 605/18 (for condos).
Do HOA Presidents Get Paid?
According to 765 ILCS 160/1-25, board members, including the president, shall serve the association without compensation unless the governing documents say otherwise. For condominiums, 765 ILCS 605/18 dictates that the bylaws should indicate board member compensation (if any).
What are the Requirements for HOA Board Members?
Board member qualifications will depend on state laws and the governing documents. An HOA’s bylaws typically outline the qualifications and requirements for board candidates.
Who can serve on the HOA board of directors?
In Illinois, condo associations must elect board members from among unit owners (765 ILCS 605/18). That means that board members must be unit owners within the association. A similar provision exists under 765 ILCS 160/1-25 for common interest communities.
Illinois law does not require board members to have specific qualifications such as educational degrees, management experience, or financial background.
Associations can usually set their own qualifications within the governing documents. Common qualifications include requiring board members to be in good standing and prohibiting board members with conflicts of interest.
Can Spouses Serve on the HOA Board of Directors?
Whether or not spouses or owners in the same household can serve on the board at the same time depends on state laws and the governing documents. The Illinois Common Interest Community Act is silent on this matter. In contrast, the Condominium Property Act addresses it.
According to 765 ILCS 605/18, only one owner from a single unit can serve on the board at any one time. That means spouses or two owners from a single unit can’t simultaneously be board members.
Do HOA Board Members Have Term Limits?
Yes, board members typically have term limits set according to state laws or the HOA’s governing documents. In Illinois, 765 ILCS 160/1-25 states that no board member or officer can serve more than four (4) years, but they may serve consecutive terms. For condos, 765 ILCS 605/18 sets the limit at two (2) years and also permits board members to succeed themselves.
Can You Remove an HOA Board Member?
Yes, an HOA can generally remove a board member. The association’s governing documents should contain the procedures and requirements for removing a board member.
Neither the Illinois Common Interest Community Act nor the Illinois Condominium Property Act outline the steps and requirements for removal. The Illinois General Not For Profit Corporation Act does, which can be found under 805 ILCS 105/108.35. If an HOA is structured as a nonprofit corporation, this can apply to them.
According to this section, an HOA may remove directors with or without cause unless bylaws or articles of incorporation require a cause for removal. For boards without voting members, a director can be removed by a majority vote of the remaining board members. For boards with voting members, a director can only be removed through a two-thirds vote of members present at the meeting.
What is the HOA Board of Directors Code of Conduct?
A code of conduct defines board members’ responsibilities and limitations while serving the community. There is no standard code of ethics or conduct for HOA boards in Illinois.
Many community associations establish their own code for board members. That said, the Community Associations Institute does provide a model code of ethics for board members in an HOA.
Answered Questions
Getting to know the HOA board of directors is not always a simple task. With these questions answered, both homeowners and board members are hopefully more informed.
Hillcrest offers HOA management services, including board education, to communities in Chicago. Call us today at 630-627-3303 or contact us online to request a proposal!
