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TL;DR: Your HOA board is a volunteer-elected group of homeowners responsible for managing your community’s finances, enforcing governing documents, and protecting property values. This guide covers how the board works, what members are responsible for, and how you can get involved.
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Living in an HOA or condo isn’t like living in any old neighborhood. There are rules to follow and meetings to attend, sure, but more than that, there is (hopefully) a sense of ease and camaraderie that comes with being part of a community association.
The backbone of that harmonious lifestyle is the HOA’s board of directors. As a volunteer-based homeowners’ group in the community, these elected individuals put in enormous effort to ensure your neighborhood is well-maintained and operates efficiently at all times.
But anyone who has lived in an HOA knows there are always rumors and negativity around joining the board. This perception makes board involvement challenging and can hurt the community.
In this guide, we’ll walk you through everything you need to know about your HOA board of directors and what to expect as a member.
What Is an HOA Board of Directors?
The HOA Board of Directors is the legal body that governs the HOA corporation and is composed of representatives from the association’s members. In an association still under development, the developer, as the majority owner, appoints its own representatives to the board.
However, when the number of homes sold in the community reaches a tipping point defined in the governing documents, the developer will turn over control of the board to the homeowners. After this ‘turnover’, the board members will be elected by the members at the annual general meeting.
Why Does an HOA or Condo Association Need a Board of Directors?
Your community association is, at its heart, a business. Most condos and HOAs are incorporated as not-for-profit entities with several legal obligations, including managing the community’s finances and ensuring compliance with all local laws. In Utah, townhome and single-family communities are governed by the Utah Community Association Act, while condo associations must follow the Utah Condominium Ownership Act. Additionally, because most choose to incorporate, they are subject to the Utah Revised Nonprofit Corporation Act.
What Are the Legal Duties of a Board Member in Utah?
The state of Utah specifies three legal responsibilities that every board member must adhere to: the duty of good faith, the duty of care, and the duty of loyalty.
Utah Code Section 16-6a-822.
(2) A director or an officer described in Subsection (1) shall discharge the director of officer’s duties:
- (a) In good faith;
- (b) With the care of an ordinarily prudent person in a like position would exercise under similar circumstances; and
- (c) in a manner that the director or officer reasonably believes to be in the best interests of the nonprofit corporation.
Collectively, these duties are referred to as the board member’s Fiduciary Duty.
Most Common HOA Board Member Responsibilities
If you’re elected to the board, you’ll have various responsibilities and duties of your own. Some of these include:
- Policymaking
- Rules enforcement
- Maintenance and repair oversight
- Contract negotiation
- Vendor control
- Capital planning
- Financial management
- Compliance with federal, state, and municipal laws and regulations
The board may also create temporary and permanent committees to delegate certain duties or research. These committees report directly to the board.
HOA Board Officer-Specific Roles & Responsibilities
Every board member is part of the association’s primary decision-making body, and each member holds exactly one vote. While the community elects the board members, the board appoints specific officer positions to distribute duties.
In other words, an HOA board is elected by the homeowners, but their specific role (such as President or Treasurer) is determined internally by the board, not by a vote of the community.
Here are some of the most common officer positions you’ll find:
President
The President of the HOA board is the primary legal representative responsible for bringing meetings to order, calling special meetings when necessary, and signing all official documents on behalf of the board.
Board Vice President
The Board Vice President is the President’s deputy. They take over as acting president in the President’s absence and may also be called upon to serve as temporary secretary during meetings. Depending on the governing documents, the Vice President may also be authorized to sign checks or contracts up to an amount authorized by the board.
Secretary
The Secretary of the community association is responsible for developing the agenda, recording the meeting minutes and votes, logging action items, and distributing these notes to the board members after each session and in advance of upcoming sessions.
Treasurer
The Treasurer oversees all financial matters for the association, serving as the primary intermediary with the community’s accounting team and the primary contact for operating and reserve accounts. They prepare periodic financial reports for board approval and lead the annual budgeting committee. The Treasurer may also manage the community’s reserve fund investment strategy, subject to the governing documents.
Parliamentarian
If specified in governing documents, one board member may be appointed to interpret the rules of order and parliamentary procedure, settle disputes about process, manage timekeeping, and table discussions that run outside the boundaries set for the current meeting.
Committee Member
The board can create temporary and permanent committees for whatever purpose it deems necessary. Common examples include the annual budget committee (temporary) and the architectural control committee (permanent). One board member typically presides, though other members can be drawn from the broader membership or outside experts.
What Rules Govern the HOA Board?
Having a set list of operational and ethical rules will help every HOA meeting run smoothly and efficiently, giving board members back precious time and instilling trust and confidence in homeowners.
Robert’s Rules
Robert’s Rules of Order (often just called Robert’s Rules, or even parliamentary procedure), an adaptation of the meeting rules used by Congress, have been used in countless industries worldwide since their original publication in the 1800s. They provide a standardized order of operations for time management in board meetings.
Standard HOA Code of Conduct
Living where you work can be challenging. For this reason, community association boards should have a documented Code of Conduct or Code of Ethics that lays out, in no uncertain terms, the actions board members are expected to take and avoid.
Though this is not a comprehensive list, a typical HOA ethics code will include items such as:
| DO | DO NOT |
|---|---|
| DO act without bias | DO NOT use your authority to make community decisions for personal gain |
| DO prioritize the best interests of the community | DO NOT use association funds for personal purchases |
| DO engage professionally with homeowners about their concerns and comments for the association | DO NOT disclose confidential information |
| DO rescue yourself from a vote when you have a personal stake in the topic |
HOA Media & Communications Policy
Though it’s probably lesser-known, an HOA Communications or Media Policy specifies how a board member can communicate with homeowners, news outlets, and their own social media accounts. These policies are important in maintaining the association’s overall image.
The California Association of Community Managers (CACM) is another highly respected entity in the community association management industry. This sample policy they’ve created includes both a Code of Conduct for Board Members and a general Board Member Communications Policy.
HOA Board Member Education
As a member of the elected board of directors, you are responsible for plotting the course to protect your community association’s future. If you are interested in training tailored to your association board, consider training as a group and developing a strategic plan for your association.
Facilitated by community management professionals, HOA Strategies can provide community-specific training and help your board develop a strategic plan to move your community forward. Developing a long-term, strategic plan is a great way to receive training in real time and helps you guarantee that you (and future members of the board) don’t have to fly the plane blindly.
The Benefits of Joining the HOA Board
If you’re considering joining the HOA board of directors, here’s how you can expect to benefit.
Facilitate Change
Every person in the community association has a voice, but as a board member, your input will carry greater weight, and your expertise will be better utilized. Maybe you’re a former accountant who can help dig into the financials, or maybe you come from a background in business management and can help identify inefficiencies. Maybe you’re just really great at working on a team toward a shared goal!
No matter your skill set, your input will be valuable and used to improve your home.
Protect Your Investment
Buying in an HOA or condo community means you are investing in something grander than just the home you occupy. You’re now part of the coalition of individuals maintaining peace in the community and extending the value of the property you all share.
As a member of the board, you are in a far stronger position to advocate for the tougher decisions that sometimes need to be made to protect (or even inflate) the value of your homes.
Gain Knowledge
Being on the HOA board of directors means surrounding yourself with a wealth of knowledge. Everything from HOA or condo law to local policies and ordinances to general bookkeeping will be at your fingertips. Your job will be to absorb as much of that knowledge as possible so you can serve your community to the best of your abilities.
How to Join the HOA Board
Joining the board isn’t as simple as just showing up and adding your name to a list. You have to be voted into an open position. To do this, you’ll need to review and fill out your community’s “Board Candidate Application.”
This form will allow you to explain why you feel you are a good fit for your community’s leadership position and give all of the reasons why you would like to join the board.
Everything from your relevant professional and personal experience to your hopes and aspirations for the community’s future should go on here to give you the best chance at standing out among other candidates. From there, it’s all about winning over your neighbors.
Other HOA Governance FAQs
Does a Utah HOA have to register with the state?
Yes. Under state law, all community and condominium associations must register and maintain an active status with the Utah Department of Commerce HOA Registry. The association is obligated to update this registration within 90 days of any changes to board leadership, management contact details, or changes to the association’s physical address.
Who is eligible to serve on a Utah HOA Board of Directors?
While the state of Utah requires only that a board member be over 18, the community’s governing documents will define who is eligible to serve on the board. Typically, eligibility requirements include that the individual is a member in good standing (i.e., a homeowner up to date on their assessments) and prohibit those with criminal records.
How many people should be on my Utah HOA Board of Directors?
In Utah, all nonprofit corporations must have a board of at least 3 members. Your community’s governing documents should specify the number of seats available for your board.
What does the HOA board of directors get paid?
Most communities’ governing documents (and even some state laws) prohibit payment for the board of directors, so the vast majority of HOA Board Members are unpaid volunteers. Although board members do not get paid, the ability to play a direct role in protecting the community and providing strategic direction for its future can be very rewarding.
What rights do homeowners have over their HOA board?
As a homeowner, if you feel an HOA board member is not performing their duties to your satisfaction, you can vote to replace them in the next election. Homeowners also have the right to run for a seat on the board, provided they meet the eligibility requirements. Additionally, homeowners have a right to speak to the board in open board meetings during the time set aside for comments.
Where does the management company fit into HOA Governance?
The board of directors hires your community’s management company to oversee the day-to-day operations of the community. As such, the management company is considered an agent of the board and is answerable to the board.
The management company (and, by extension, the community manager) does not have the power to make decisions on behalf of the community; it only implements decisions the board makes.
Who is the most powerful officer on an HOA Board of Directors?
While each officer on the HOA board has their own responsibilities, every board member, regardless of position, has the same power, with only one vote to override the majority.
What do members of the HOA board need to know?
While the board can bring on any number of advisors, such as lawyers and community managers, they are responsible for making decisions on the community’s behalf. Therefore, board members must have a solid understanding of the governing documents and familiarity with state and federal laws governing community associations.
Ongoing board member education plays a critical role in helping them stay informed and make better decisions.
Building Blocks for Success
The perfect HOA isn’t just wishful thinking. HOA Strategies has 15 years of experience guiding and supporting community associations to help them achieve success. We will work with your board to craft the policies you need to succeed.
If you’re looking for ongoing board member education for yourself or others on your board, contact us today. We’re ready to help you achieve perfection.
