What are the duties of HOA’s Board of Directors?

In general, corporate law gives board members of a nonprofit corporation the fiduciary duty to the other members of the HOA (all the other homeowners). In practice, this means that HOA board members must:

• act in good faith
• act in the best interests of the HOA as a whole (and avoid any conflict of interests)
• be informed prior to acting
• not take any actions without proper authority, and
• not take negligent, or willfully harmful actions.

Beyond a board of director fiduciary obligation the specific duties and responsibilities of HOA board members depend on your development’s governing documents.

Typically, HOA articles and bylaws require that HOAs have a minimum number of board members, each of whom serves for a specific term. The governing documents describe who can serve on the board and how board members are elected. The documents also determine required meetings, and describe meeting and voting procedures.

Most boards are also required to elect officers. These commonly include a president, vice president, secretary and treasurer. Each officer has different responsibilities listed in governing documents.

A key responsibility of almost all HOA boards is to set the annual budget for the operation and maintenance of the community. Again, procedures for adopting the budget are determined by the governing documents’ requirements, but typically, a board vote is necessary. A HOA board of director, will need to familiarize themselves with the expenses involved with running the community, and make responsible, informed decisions on budget matters.

HOA board of directors also have various powers under the governing documents. These may include the following:

• The authority to assess and collect periodic dues from each homeowner to pay for the budget.
• The authority to levy special assessments for items outside the budget
• The power to adopt reasonable rules and regulations.
• Enforcement powers, such as the right to assess fees for delinquent dues or for rule violations.

Volunteer board members are essential to the harmonious functioning of a community. If you’ve ever been interested in serving on a board of your HOA, give it a try. You can also be part of a committee or an officer for the board.