More than 75 million Americans live in a home governed by a Homeowners' Association (HOA). This number will only increase in the near future, with 3,000 new HOAs expected to form this year.
While helpful at times, HOAs can be the luck of the draw. Some HOAs take care of their duties and don't ask anything unreasonable from their members. Others make arbitrary rules that inconvenience residents.
As long as an HOA board handles its community tasks, it can make whatever rules it wants within certain legal limits. This raises an important question: What is an HOA board supposed to do? We'll talk more about that here.
1. Caring for Common Areas
Whether you live in a condo or a small cul-de-sac, you're going to share certain areas with other residents. For instance, nobody can own the hallways, stairways, elevators, or fire escapes of an apartment building. Sidewalks and sewers are considered public property, so nobody can claim to own them.
If nobody can own these places, who has to take care of them? If the area is under the jurisdiction of an HOA, the board does. The board handles everything from cleaning to financial upkeep. They're required to maintain shared spaces within the HOA that might not be open to the public, such as pools or gyms.
2. Making Financial Decisions
HOA management duties involve deciding how and when to spend money. The board often appoints a treasurer to handle much of this. The treasurer is one of a few vital community association roles on an HOA board.
Oftentimes, the HOA board discusses financial issues and potential solutions as a group before turning things over to the treasurer. Managing the finances for an HOA is a complicated job, because the association has many things to take care of and only a certain amount of money to do it with.
The HOA makes its money through a combination of dues and fines from violations. This means that the size of the organization will determine how much they can do at one time. They might raise fees if they need extra money.
3. Appointing a Manager
Among the most important decisions an HOA board makes is selecting a manager. The manager acts as a liaison between the board and the residents.
HOA management duties include sending letters when someone violates the rules of the HOA and fining them. They mediate issues between members and take care of HOA management duties so the board can focus on long-term issues.
HOA Board Responsibilities
Most local HOA activities and responsibilities are managed by an HOA board. The board is comprised of HOA members who manage various aspects of the community.
We've discussed some of the most important duties of an HOA board here, but this is an overview. If you're looking for more specific duties of an HOA board, please read our blog.
If you're in need of a property management company, come to us at PMI PG County. We are a company with more than twenty years of experience. We're also managed by a retired Army officer who's directed combat operations of more than 1,000 people. Check out our resources for board members.
