An HOA board plays a critical role in managing and governing homeowner associations. These elected individuals handle the operations, enforce rules, and ensure the community runs smoothly. Without an effective HOA board, maintaining property values and ensuring harmony can come as a challenge.
What is an HOA Board?
An HOA board is a governing body consisting of volunteer homeowners who are elected by the community. The board’s primary responsibility
is to oversee the association. While the board has certain authorities, it must operate within the parameters of the law and the HOA’s governing documents.
The HOA board of directors works as a team and presents a unified front to the community. Even when they are not always in agreement, they must stand by the majority’s decision. This fosters a sense of trust and confidence.
What are HOA Board Responsibilities?
While more specific responsibilities of the HOA board can vary from one community to another, they typically cover the following key aspects.
1. Maintaining Common Areas
The board is responsible for ensuring that common areas are well-maintained. They hire vendors to perform critical maintenance tasks, including cleaning and repairs. Common areas can differ from one HOA to another, so the job’s complexity can also change.
2. Enforcing Rules and Regulations
The board is responsible for upholding community standards. They do this by enforcing stringent rules outlined in the governing documents. When a homeowner violates the rules, the board typically has the authority to impose a penalty.
3. Managing Finances
Boards prepare budgets, collect dues, and allocate funds for repairs, landscaping, and other necessary expenses. They also manage the reserve fund, including facilitating the execution of a reserve study.
4. Communicating with Residents
Transparency is essential. Boards regularly update policies, events, and financial matters through meetings and newsletters.
5. Handling Disputes
The board mediates conflicts between neighbors or between homeowners and the HOA. As such, an internal conflict resolution policy is vital. Section 209.007 of the Texas Property Code encourages alternative dispute resolution before litigation.
Who are the HOA Board Members?
Board members are homeowners within the community who are nominated and elected by other homeowners. These people volunteer their time to serve the association. While anyone can run for a position, most governing documents have basic requirements.
What are the HOA Board Member Duties?
There are four notable HOA board positions: president, vice president, secretary, and treasurer. It’s essential to understand the duties of each officer, especially if you wish to run for a position on the board.
HOA President Duties
The president serves as the leader of the board. They ensure that meetings are productive and that decisions align with the HOA’s goals. They act as the primary representative of the HOA in external matters, which means they are often the signatories of contracts.
HOA Vice President Duties
When the president is away or unable to fulfill their duties, the vice president assumes their role. As such, the VP must understand the president’s roles and responsibilities.
Outside of this, the VP assists the president in performing their tasks. They take on any duties assigned to them by the president. This can vary from one community to another, including overseeing committees and other projects.
HOA Secretary Duties
The secretary manages the association’s records. They are responsible for recording the minutes of every meeting, including annual and board meetings. They must also maintain important documents such as official correspondence and legal documents.
In addition, the secretary is in charge of ensuring legal compliance regarding records inspection. If homeowners request to examine certain records, the secretary must comply with state laws. In Texas, Section 209.005 details homeowners’ right to access HOA records.
HOA Treasurer Duties
The treasurer oversees the association’s finances, from preparing budgets to monitoring expenses. They ensure the timely collection of dues and proper allocation of funds. Treasurers also provide financial reports during meetings and handle tax filings or audits.
What is the Fiduciary Responsibility of HOA Board Members?
The board members of an HOA have a fiduciary duty to act in the community’s best interests. This responsibility encompasses three main duties: the duty of care, the duty of loyalty, and the duty to act within the scope of authority.
Duty of Care
Board members must make informed decisions by researching issues and consulting experts when necessary. They must not make decisions arbitrarily or without thought. Negligence or lack of preparation can violate this duty.
Duty of Loyalty
Board members must prioritize the HOA’s collective interests over personal gain and must not make decisions for personal gain. If a potential conflict of interest exists, they must disclose it immediately and even recuse themselves from any situation where their personal benefits may compromise their judgment.
Duty to Act Within the Scope of Authority
Board members must act within the limits set forth by federal, state, and local laws and the HOA’s governing documents. Unauthorized actions can have legal consequences.
Frequently Asked Questions
Here are the most commonly asked questions about HOA boards.
How do you become an HOA board member?
Board members are typically elected during the HOA’s annual meeting. Homeowners can nominate themselves or others. This is the same practice for most HOAs in Houston. However, board members may also be appointed to fill vacant positions.
Do HOA board members get paid?
No, board members in an HOA typically don’t get paid for their service. Some states even have laws against this. In Texas, HOA boards usually don’t receive compensation. However, the HOA’s bylaws can say otherwise.
Who is qualified to become an HOA board member?
This depends on the governing documents of the HOA. In Texas, no law explicitly lists the requirements for a member to be eligible to run as a board member. That means even if the person isn’t a member of the HOA, they can be a board member, provided the governing documents allow it.
However, the Texas Property Code imposes a few restrictions regarding board eligibility.
- The bylaws may stipulate that some board members must reside in the subdivision, but they can’t mandate residency for all members.
- In associations with over 10 lots, individuals living in the same household can’t simultaneously serve on the board.
- Board members convicted of a felony involving moral turpitude within the last 20 years can be immediately removed from their role and barred from future service on the board.
How many members are on an HOA board?
This depends on the state and the HOA. However, in Texas, the Nonprofit Corporation Act Section 22.204 states that an HOA must have at least three board members. If your HOA’s bylaws don’t say how many people should be on the board, Texas law covers the number of directors initially listed in the Articles of Incorporation.
How long do board members serve?
Terms can vary from one community to another. However, Section 22.208 of the Texas Nonprofit Corporations Act states that if there is no definite term in the bylaws, a director may serve “until the next annual election of directors and until a successor is elected, appointed, or designated and qualified.”
Can an HOA board member resign?
Yes, board members in Texas can resign at any time by submitting written notice to the board unless the governing documents say otherwise.
Can you remove an HOA board member?
Yes, you can typically remove an HOA board member by following the procedures and requirements outlined in your governing documents. However, if there are none, Section 22.211 of the Texas Nonprofit Corporations Act states that “persons entitled to elect, designate, or appoint the director” may remove the board member.
The Key to Success
The HOA board is the backbone of any successful community. These members are responsible for the continuous operations of an association, handling finances, enforcing rules, and ensuring maintenance. It’s important to understand the roles and responsibilities of the HOA board to prepare yourself if you plan to serve your community similarly.
Graham Management offers exceptional HOA management services to communities in Houston. Call us today at (713) 334-8000, request a proposal, or contact us online to learn more.