For a homeowners’ association to function properly, a Board of Directors is a necessity. The volunteers elected to be on the board are responsible for ensuring the community runs smoothly and the association functions normally. Without a capable board, the community may become neglected and fall apart. For your reference, here we describe HOA leadership roles and duties.
“To form an effective board, directors must have a clear understanding of the strengths and weaknesses of the association, its history, and what is to be accomplished.”
Board of Directors
HOA leadership is a Board of Directors. The board consists of homeowners elected by the community. (This is not to be confused with community property management.) Bylaws are in place, among other reasons, to assist in this process. Bylaws help:
- ensure new member election (or re-election) on an annual basis
- list how to conduct elections
- include responsibilities of members and officers
HOAs typically have between three and seven board members. Positions and terms vary from association to association.
HOA leadership roles and duties include management and operations of the association, and other business-related affairs. All duties are established beforehand and are enforced by the association bylaws.
“To the extent that an association has such authority and control, it is its board of directors that carries out these duties and responsibilities“.
The President of the Board is your HOA leader. This position requires strong management and leadership skills. The President’s role is to lead meetings and ensure board members all have the opportunity to provide their opinions. Knowing how to conduct productive meetings is a crucial skill set here. As such, the President’s duty is to ensure that any decisions are:
- agreed upon in the proper fashion
- after appropriate discussion
- with the best interest of the community in mind
In addition, (s)he is responsible for creating the HOA board meeting agenda and addressing important matters in a timely fashion. Similar to a CEO of a company, this HOA leader will sign any legal documents pertaining to the association, and co-sign checks.
The HOA leadership roles and duties of the Vice President vary by association. Some HOAs choose not to have one. The Vice President can act as a substitute for the President if (s)he is unavailable, and also carries out any assigned duties.
The HOA Secretary works along with the President to develop meeting agendas and provide proper notice of meetings. The Secretary has the important job of taking the HOA board meeting minutes. Even more importantly, (s)he is responsible for all association records, such as homeowner information and maintenance history. It is the Secretary’s duty to store these records properly and make them available upon request. Additionally, the Secretary is responsible for keeping the neighborhood updated on news and association information.
The HOA Treasurer has the big responsibility to maintain the financial records. These records must adhere to accounting principles. That is why HOA leadership often outsources their property management accounting. The Treasurer or outsourced bookkeeper is responsible for cash flow, collecting dues, and issuing payments to vendors. Additionally, at the end of the fiscal year, the HOA Treasurer should prepare the annual budget, income, and expenditure reports for the rest of the board.
HOA leadership roles and duties can be outside of these titles, as well. Depending on the number of members a board has, there may be Directors whose title is just that. They have the same voting power as other members, and may volunteer or get assigned ad hoc duties.