By: Tom Skweres, CMCA, CAM – ACM Community Management
The responsibility of the Board of Directors is to preserve, protect, maintain and enhance the Association. The Board has to understand that it is running a business and all decisions should be made with the best of intentions for the entire Association. Board members have to make sure that they are always performing their duties with the degree of care granted to them, through the election process, as legal representatives of the unit owners. They must always have all facts about operational and administrative items at their disposal, so they can perform their duties with their best business judgement. And, the Board always needs to act as a TEAM.
The TEAM is not only the Board members themselves, but also committee volunteers, professionals, such as lawyers, accountants and bankers, but also management, vendors and contractors.
HOA Areas of Focus
Some of the areas that HOA board members need to focus on are:
- Macro or big picture issues.
- Holding productive meetings by preparing a relevant and realistic agenda and sticking to it.
- Protecting itself from liability by using qualified and insured vendors.
- Taking care of the property.
- Making logical, unbiased and well thought-out decisions without personal agendas interfering.
- Utilizing volunteers.
- Presenting a unified front to the homeowners when announcing Board decisions to them.
- Being proactive.
- Most importantly, communicating with the homeowners.
Duties of HOA Board Members
Some of the homeowner’s association board member responsibilities include:
- Care, upkeep, maintenance, replacement and improvement of the common elements.
- To prepare, adopt and distribute an annual budget and to levy and expend the assessment money derived from the budget.
- To obtain adequate and appropriate insurance coverage for the common areas.
- To create and adopt rules and regulations regarding the use of the property, including the adoption of fines for violations of these rules.
- The Board also needs to keep detailed records of expenditures the Board makes running the Association.
As a famous quote from an unknown author goes, “It is amazing how much you can accomplish when it doesn’t matter who gets the credit”.
For expert HOA Management Services, contact ACM Community Management today!