Have you ever wondered what is it that our HOA Board members actually do for us -- what their responsibilities are -- how much work they have to put in on our behalf?
In a series of articles, we will address this topic in depth -- and first we are starting with a brief overview of what a Board member does.
Acting through the board as a whole, a board member has the responsibility to:
- Enforce the community documents
- Establish sound fiscal policies and maintain accurate records
- Develop a workable budget, keeping in mind the needs, requirements and expectations of the community
- Establish reserve funds
- Act on budget items and determine assessment rates
- Collect assessments
- Establish, publicize, and enforce rules and penalties
- Authorize legal action against owners who do not comply with the rules
- Review local laws before passing rules or sending bylaws to membership for approval
- Appoint committees and delegate authority to them
- Select an attorney, an auditor, insurance agent and other professionals for the association
- Provide adequate insurance coverage, as required by the bylaws and local governmental agencies
- Inform board members of all business items that require their vote
- Inform members of important board decisions and transactions
- See that the association is protected for the acts of all parties with fiscal responsibilities
- Attend and participate at meetings
In sum, the responsibilities of a Board member are broad. To be able to act responsibly, the Board member needs to have a wide range of business knowledge.
As stated above, infuture articles, we will discuss each of these areas of responsibility in more depth.