Who should not serve on a HOA board? For many associations, navigating the ins and outs of board member qualifications can be challenging. However, it is essential to set specific criteria for board membership. This will allow the HOA to control the quality of directors who serve the community while simultaneously ensuring the association’s success.
In this article:
Can an HOA Dictate Who Should Not Serve on a HOA Board?
In general, an HOA can dictate who should or should not serve on its board. Typically, this comes in the form of board member qualifications as they appear in the HOA’s governing documents, specifically the bylaws. Many associations have written rules for allowing or disallowing members to run for board positions.
That said, state laws also have a say in the matter. In fact, in some states, there are clear qualifications that an HOA may implement and others that it may not. California is a prime example of this.
As such, homeowners associations should refer to state laws and governing documents for guidance. The answer is not always the same or universally black-and-white for HOA communities.
Who Should Not Serve on a HOA Board of Directors?
State laws and the governing documents are essential in determining board qualifications. However, some qualifications and prohibitions are more common than others.
Below are everyday things that will disqualify a resident from serving on an HOA board. Remember, though, that there can be exceptions to these depending on the law and the bylaws.
1. Non-Members
Perhaps the most common qualification for board members in HOAs is membership. Many associations don’t allow non-members to join the board. This helps ensure that those who serve on the board have a vested interest in keeping the association in good shape. After all, they stand to lose property if they fail to maintain the community.
In California, this qualification is mandatory. According to Civil Code Section 5105, an HOA must disqualify a person from running if they are not a member at the time of nomination. If their name is not on the title, they can’t serve. Conversely, no such qualification exists under state law in Texas, essentially allowing even non-members to serve on the board.
2. Delinquent
Many associations require board members to stay up-to-date on all their payments, including dues and special assessments. If a person becomes delinquent, they are no longer allowed to serve on the board. However, in California, there are exceptions to this, such as those who are paying under protest, are currently in a payment plan, or weren’t given a chance to enter internal dispute resolution.
3. Joint Ownership
Associations also tend to prohibit those who share ownership of the same property from simultaneously serving on the HOA board. This prevents tipping the scales for the joint owners when board decisions are made.
California has a state law supporting this qualification. Similarly, Texas law dictates that members who live in the same house can’t simultaneously be on the board in communities with more than 10 lots.
4. Less Than a Year of Membership
Some associations require board directors to have been a part of the HOA for at least a year before they can serve. That means they can’t join the board if they have owned their interest in the community for less than a year. This is to help ensure members are familiar with the HOA and how it works before they take a more decision-making role within the community.
5. Criminal Conviction
Associations also tend to prohibit those with past criminal convictions from serving on the board. This is especially critical if the past conviction prevents the HOA from securing the required fidelity bond coverage or would otherwise cause the termination of the existing coverage.
6. Felony Conviction
Some HOAs prohibit members from joining the board if they have a past felony conviction, too. In California, though, such a qualification is no longer permissible unless the fidelity bond coverage is affected. Meanwhile, in Texas, if a person has a felony conviction involving moral turpitude within the last two decades, the HOA may remove them from the board or prevent them from running altogether.
7. Not in Good Standing
There are some communities that require board members to be in good standing. This means they can’t have any outstanding violations of the rules or any unpaid fines. However, in California, such a qualification isn’t allowed.
8. Ongoing Litigation
Another qualification some HOAs have is that board members must not be in litigation with the association. This is to prevent issues with conflicts of interest and confidentiality. However, California law no longer permits this qualification.
9. Term Limits Reached
If members have reached the term limit, the HOA typically prevents them from serving on the board again. Term limits can vary widely from one association to another. Some don’t have them due to a lack of interested candidates. However, this can create problems for the HOA if the same people remain in charge for extended periods.
What Makes a Bad Board Member?
A member may possess the right qualifications to serve on the board, but that does not guarantee they will serve effectively. In fact, many board members are ill-fitted for the job. Here are the qualities that make up a lousy board member.
- Discriminates Against Residents. A board member discriminating against residents isn’t suited to lead an association.
- Lacks Good Business Judgment. Board members make decisions every day. As such, they should have sound business judgment.
- Embezzles Funds. Embezzlement jeopardizes the fiscal health of the HOA. Board members who embezzle funds must be removed and reported to the proper authorities.
- Misses Meetings. While not as grave as embezzlement, constantly missing board meetings indicates a bad board member.
- Pursues Personal Agendas or Vendettas. A board member exists to serve the HOA and its best interests. Therefore, if a board member pursues personal agenda, vendettas, or benefits, they shouldn’t be on the board.
- Behaves Unethically. Unethical behavior is a red flag for a board member. Communities should adopt a code of ethics to keep board members in check.
- Monopolizes Discussions. Board members should work together and present a unified front. If a board member consistently monopolizes discussions, tramples over other people’s inputs, and exhibits dictatorial qualities, they’re not suited for leadership.
- Violates Confidentiality. Board members should always uphold confidentiality. Breaching confidentiality violates the trust that other members have in the board.
- Offers a Terrible Example to Members. Board members are the leaders of an HOA. As such, they should behave professionally and act as an example to their constituents. That means following the rules, paying their dues on time, and treating others with respect.
Who Should Sit on a HOA Board of Directors?
Members who don’t exhibit the above bad qualities should sit on the HOA board. While imperfect, board members should always strive to be the best leaders they can be and put the interests of the HOA above their own.
Who Should Not Serve on a HOA Board? Answered!
Homeowners associations typically have qualifications that control and restrict who can serve on the board. These help ensure that the best of the community are chosen as leaders. However, HOAs should remember to check state laws and their governing documents when it comes to board qualifications. This way, they can prevent liability and ensure a fair election.
Elite Management Services provides expert assistance, including board education, to HOAs and condominiums. Call us today at (855) 238-8488 or email us at help@emspm.com to learn more!
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