Board Members: What’s their role?
Every homeowners’ association is required to have an elected board of directors that acts on a community’s behalf. Oftentimes, there’s a misconception that all board members do is measure budget performance or create and enforce rules. A completely voluntary role, board members are also homeowners in the community, so it’s in their best interest to use their position for the benefit of the association. While maintaining a safe and orderly neighborhood is one of their primary duties, there is so much more that goes into the roles of board officers. It’s also important to keep in mind that one board member does not have any more authority than another, regardless of their actual position. Every Director on the board has an equal say and vote in the decision-making process. Here is a breakdown of each role and how they pitch in to keep systems organized and members happy.
President
The HOA board president is in charge of steering the ship and navigating the direction of the association. They guide the board, handle procedural duties, and serve as the advocate for business matters. This person is the main point of contact for partners and contractors and is responsible for calling and running all board meetings, as well as formulating the agenda.
Primary Duties:
- Directs association business and affairs
- Schedules and runs board meetings
- Serves as liaison between board and partners
Vice President
The vice president is the president’s right-hand go-to and acts in their place if need be. They are expected to know the president’s duties like the back of their hand. A good VP ensures meetings run smoothly and that order of business is always maintained. They may also chair larger committees, such as the architectural review committee.
Primary Duties:
- Acts on behalf of president when they’re out of office
- Chairs important meetings
- Helps run meetings
Secretary
The secretary guarantees all board and association documents are well-managed. However, it’s much more than just clerical work. Secretary tasks include ensuring homeowners are aware of meetings, and that minutes are taken and approved. They must confirm documents are accessible to appropriate parties (e.g., lawyers and mortgage companies), and may need to sign off on important paperwork as well.
Primary Duties:
- Guarantees records are maintained
- Confirms proper meeting notice is given
- Ensures minutes are taken, approved, and disseminated
Treasurer
The treasurer oversees all things related to financials for the association. They review records for accuracy, assist in the management of essential accounts, and stay closely involved with annual budget preparation. Many financial functions are often outsourced to an accountant, and it’s the treasurer’s job to work with them so that everything is completed on time and in compliance with the community’s bylaws.
Primary Duties:
- Oversees operating and reserve accounts
- Manages annual budget preparation
- Serves as liaison between board members and accounting partners
Board Member Fiduciary Duties
In the context of an HOA, board members have several fiduciary duties that they owe to the homeowners who form the HOA. Briefly, these are:
- A duty of care
- The duty to use sound business judgment, and
- A duty of good faith and loyalty.
Board members have the duty to enforce the HOA’s CC&Rs. Their failure to do so could be a breach of the duty of care they owe to members. Similarly, board members must use their sound business judgment when it comes to making decisions for the community and investing community funds.
Finally, the board members have a duty to act in good faith while acting as fiduciaries for their communities. Board members need to be very careful to not engage in “self-dealing” when it comes to making decisions on behalf of the community that might also benefit the specific voting board member.
There is far more involved in HOA board member responsibilities than the brief explanation above, but it’s important to know that the decision-making power of a board member in an HOA is an important and weighty responsibility.
Heroes Behind The Scenes
All in all, HOA board members volunteer years’ worth of their time and attention to plan for the success of their associations. It is essential to take the time to give credit where it’s due and show recognition for the hard work being done in our communities.
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