Homeowners associations are run by a set of leaders known as board members or board of directors. Whether you’re simply curious about what the homeowner association board of directors actually does or you’re considering volunteering for your own association, it’s important to know the functions of HOA board member roles.
In this article:
Understanding HOA Board Member Roles
Typically, there are four HOA board member roles: President, Vice President, Secretary, and Treasurer. Each one of these board of directors positions plays an integral role within the association.
There are many HOA board member duties, some of which overlap from member to member. Moreover, certain HOA board member responsibilities can be delegated to other board members or committees. In some cases, a professional third party can come in to manage an association. An HOA management company would then assume much of the management functions of an HOA board of directors.
The essential purpose of any HOA board of directors, whether conducted internally or by outside professionals, is to manage the association through each member’s respective duties, outlined below.
1. President
The main role of the HOA President is to oversee the majority of the decision-making process. Essentially, the final say comes down to the President.
However, it’s not all glam and glory for the President. Anyone who assumes the role must have the right qualifications to make those decisions. That means a working and in-depth knowledge of the regulations, bylaws, and operations of the association.
The President is also able to delegate in the form of committees to handle certain obligations. Finally, they conduct all meetings, no matter the nature of the meeting. In these meetings, the President acts as a foreman. They call the meeting to order, discuss the agenda, allow for others to speak during the meeting, ask for votes, and more.
If you want to run for this position, you must know the HOA President’s responsibilities. That includes a familiarity with the inner workings of the association. You must also have excellent public speaking skills. It is one of the HOA President duties to make sure the association functions at its full capacity.
2. Vice President
Many find it difficult to fully understand the role of HOA Vice President. For all intents and purposes, the HOA Vice President’s responsibilities are the same as the President’s. This is because their primary duty is to assume the role of the President when the President is unable to do so themselves. This includes instances where the President is sick, out of town, or otherwise incapable of completing their regular duties.
That does not mean the Vice President has nothing else to do, though. The President can still delegate HOA Vice President duties. Additionally, the Vice President must be equally informed about the regulations and bylaws of the association in order to assist members of the community with any inquiries. This knowledge helps them keep the business aspect of the association running smoothly.
3. Secretary
The Secretary is an integral part of the HOA board. The role of the HOA Secretary is to handle all of the documentation and record-keeping within the association. Since they are responsible for all official documentation, part of their function is to stay compliant with all legal requirements. This includes submitting any forms before deadlines.
Other HOA Secretary responsibilities include giving proper notice of all meetings, recording all meeting minutes, and distributing all essential documentation to the other board members. Another key function of the role of Secretary is to review all official documents in an effort to ensure a continually updated record.
If you want to run for this position, it is imperative to know the HOA Secretary’s duties. Otherwise, you will only set yourself up for failure.
4. Treasurer
The HOA Treasurer is responsible for the entirety of association funds and the disbursement of those funds.
The main role of the HOA Treasurer is to keep a detailed record of current funds and all transactions sanctioned by the association. This includes billing, operational costs, and the collection and allocation of funds.
They are also in charge of creating the annual budget and maintaining the right reserve level for any unplanned expenses, as well as making any approved investments.
As for other HOA Treasurer responsibilities, they must keep other board members informed of the association’s financial status and any discrepancies within the records. They must also comply with all laws and regulations that dictate the proper financial operations of the HOA. Due to the complexity of association accounting, board members will often turn over these responsibilities to a reputable finance management company.
To become a board Treasurer, organizational skills are once again a key trait. Since HOA Treasurer duties usually involve money management, being good with numbers and finances is another good quality to have, as is accurate record keeping.
The Role of a Community Manager Explained
While the community manager is not a member of the board of directors themselves, they do work closely with the board to support the community. The community manager is an employee of a management company. Their job is to act as a liaison between the board and the management company. They must make sure the association carries out its decisions effectively.
They also often manage things like violations enforcement, collections, and maintenance around the community and train the board in their roles. Because they work so closely with the board, the manager must maintain a good working relationship with the directors. If your community manager fails at this task, consider talking to the company you work with or consider hiring someone new.
HOA Board Elections
These four officials make up the HOA board member roles. Together, they handle all of the various functions of the association. The members of the HOA board are not hired nor do they receive any monetary compensation. Rather, volunteers are elected into HOA board positions by the members of the community. Typically, HOAs hold board elections on an annual basis to continuously bring in new leadership.
It’s important for members of the community to participate in HOA meetings and elections. The purpose of the association is to serve the members of the community, which means the community members are equally important to the HOA as the elected officials. If you’re interested in volunteering for your homeowners association board of officials, keep an eye out for your annual board elections.
The Key to a Capable Association
A homeowners association handles multiple aspects of community living, which presents a sense of comfort to community members. This is why it is critical to know the various HOA board member roles within an association.
After all, a competent HOA is one where board members and community managers work together to provide a wonderful place to live. These two parties must also continuously bring in new ideas through annual elections. Combined with a community that’s informed about their association and how it operates, the entire system operates like a well-oiled machine.
Every association is different, though. Some find it harder to run an entire community than others. If your HOA is facing the same issue, consider giving us a call today.
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