Category Archives: HOA Meetings

Common HOA Management Mistakes

Common Mistakes in HOA Management and How to Avoid Them

Homeowners associations (HOAs) play a vital role in maintaining and improving the quality of life in residential communities. However, even the best-intentioned HOA boards can make mistakes from time to time. These mistakes can lead to a variety of problems, including financial mismanagement, conflict among homeowners, and a decline in property values.

Here are some of the most common mistakes in HOA management and how to avoid them:

Mistake #1: Ignoring or Misreading the Governing Documents

The governing documents of an HOA, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, and Articles of Incorporation, are the legal foundation of the association. They outline the rights and responsibilities of homeowners and the HOA board. Every HOA board member should be thoroughly familiar with the governing documents.

Solutions

  • Make sure that all new HOA board members receive a copy of the governing documents and time to review them.
  • Hold training sessions on the governing documents for all board members.

Mistake #2: Lacking a Budget or Reserve Fund

A budget is essential for any organization, including an HOA. It helps the board to track income and expenses and to make informed decisions about how to allocate resources. A reserve fund is a savings account that can cover unexpected expenses, such as major repairs or replacements.

Solutions

  • Work with your association management team and develop a detailed budget for the HOA each year and review it regularly.
  • Establish a reserve fund and make regular contributions to it.

Mistake #3: Not Enforcing Rules

HOA rules and regulations are in place to protect property values and quality of life in the community. It’s essential for the board to enforce those rules fairly and consistently.

Solutions

  • Make sure all homeowners are familiar with the HOA rules and regulations.
  • Establish a process for handling violations and enforce it consistently.

Mistake #4: Not Communicating with Homeowners

Communication is essential for a successful HOA. The board should keep homeowners informed of upcoming meetings, important decisions and financial matters. The board should also be responsive to homeowner concerns.

Solutions

  • Establish and use your communication channels: newsletter, community texting, website and/or social media page.
  • Hold regular town hall meetings to answer homeowner questions and concerns.

Mistake #5: Lack of Transparency

Homeowners have a right to know how their HOA is managed. The board should be transparent about its finances and decision-making process.

Solutions

  • Make all financial records available to homeowners upon request.
  • Hold open meetings where homeowners can participate in the decision-making process.

Mistake #6: No Conflict Resolution Process

Disputes among homeowners are inevitable. It is important for the HOA board to have a conflict resolution process in place to help homeowners resolve their differences peacefully.

Solutions

  • Develop a conflict resolution process that is fair and impartial.
  • Ensure all residents are aware of the conflict resolution process and how to access it.

By avoiding these common mistakes, HOA boards can help to ensure that their communities are well-managed and that homeowners are happy with the services they receive.

Additional Tips for HOA Management

Hire a professional management company like Goodwin and Company. If your HOA is large or complex, you may want to consider hiring a professional management company. A professional management company can help you to avoid many common mistakes and to ensure that your HOA is run efficiently and effectively.

Get training for HOA board members. There are a number of organizations that offer training for HOA board members. This training can help board members learn about their duties and responsibilities and how to avoid common mistakes.

Be proactive. Don’t wait until there is a problem to take action. Be proactive in managing your HOA’s finances, maintaining the common property, and enforcing the rules.

Let Goodwin and Company Take the Lead

By proactively following these tips, HOA boards can help to create and maintain thriving communities. Whether you’re a homeowner or part of an HOA board, or both, a collective effort to avoid these mistakes and follow the provided tips can lead to a better quality of life for everyone in the community. Goodwin and Company can provide professional management services to assist HOAs in correcting these issues and designing a brighter way forward.

Contact us today to learn more about our services.

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Transparency and Trust: Information an HOA Board Should Consider Sharing with Members at the Annual Meeting

An annual meeting is an important event for any homeowner association (HOA) board. It’s a time to review the previous year’s activities and accomplishments, discuss plans for the upcoming year and provide an opportunity for members to voice their concerns and provide feedback. The HOA board has a responsibility to provide transparent and comprehensive information to members during this meeting. In this article, we will discuss what information an HOA board should share with its members at the annual meeting.

Financial update: One of the most important pieces of information to share at an HOA annual meeting is the financial report. This should include a detailed breakdown of the association’s income and expenses, including any outstanding debts, and how the funds were allocated over the past year. Members should be able to see how their dues and other fees were spent and have a clear understanding of the financial health of the association.

Planned projects: The annual meeting is a great time to discuss any planned projects for the upcoming year. This can include things like landscaping improvements, building repairs, or any other major initiatives that will require funding or member involvement. Members should have an opportunity to provide feedback and suggestions for these projects and should be informed about the timeline and expected costs.

Goals for the upcoming year: In addition to discussing planned projects, the HOA board should share its goals for the upcoming year. These can be specific objectives such as reducing expenses, increasing member participation, or improving communication channels. Sharing these goals with members can help align their expectations with the board’s priorities and build support for future initiatives.

Board member election results: If there are any board member elections during the annual meeting, the results should be announced and discussed. Members should be informed about who was elected to the board, what their responsibilities are, and how they were chosen. This can help build trust and transparency within the association.

Community achievements: It’s important to acknowledge the community’s achievements during the annual meeting. This can include things like successful events, volunteer efforts, or any other accomplishments that members can be proud of. Recognizing these achievements can help foster a sense of community and encourage further involvement.

Legal updates: The HOA board should inform members of any legal updates or changes that may affect the HOA. These can include changes to state or federal regulations, new laws, or legal disputes that the HOA is involved in (where appropriate to share). Keeping members informed about legal updates can help them understand how it may affect the HOA and their property.

Governance: Members should be given an update on any changes to the HOA’s governance documents, such as the bylaws, covenants, and rules and regulations. These documents are the foundation of the association and members should understand any updates or revisions that have been made.

Communication channels: The HOA board should discuss the various communication channels available to members, such as newsletters, websites, or social media platforms. Providing information about these channels can help members stay informed and engaged with the HOA’s activities and initiatives, as well as provide a means for members to provide feedback and stay connected with the board and other members.

Open forum: The annual meeting should also include an open forum where members can voice their concerns, ask questions, and provide feedback to the board. This is an opportunity for the board to listen to members’ concerns and address any issues that may have arisen during the previous year.

The annual meeting is a crucial event for any HOA board to communicate with its members. It provides an opportunity to review the previous year’s activities and achievements, discuss upcoming projects, and address any concerns or issues raised by members. By sharing transparent and comprehensive information with members, the board can build trust and support within the community, and work towards achieving its goals for the upcoming year.

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Tips for Obtaining a Quorum at your Annual Meeting

A homeowner’s association (HOA) annual meeting is an important gathering for making decisions that affect the community. A quorum must be present to ensure that the meeting is valid and that decisions can be made. A quorum is the minimum number of homeowners required to be present at the meeting to make it official, as dictated by the association’s governing documents.

Here are some ways an HOA can ensure a quorum at an annual meeting:

Encourage Attendance: The HOA can encourage homeowners to attend the annual meeting by sending reminders via your website, email, mail, or text message. Simple signage in your community’s entrances and common areas can also help. They can also provide incentives for attending, such as offering door prizes or free refreshments.

Adequate Notice: Providing adequate notice of the meeting date, time, and location is essential. The HOA should follow its own bylaws, as well as state and local laws, for the notice required for the annual meeting.

Proxy Voting: Allowing proxy voting, where a homeowner can assign their voting rights to another homeowner, is an effective way to ensure a quorum. This allows homeowners unable to attend the meeting to still have their voices heard.

Early Start Time: Scheduling the annual meeting at an early time can help increase attendance. Homeowners who have work or other commitments later in the day are more likely to attend if the meeting is held earlier.

Online Meetings: With the advent of technology, it’s now possible to hold virtual annual meetings online. This allows homeowners who are unable to attend in person to participate remotely.

Online Voting: If your documents and state statutes allow members to vote via online methods, platforms such as the TownSq Digital Voting Feature can boost participation, cut down on costs, and provide faster results of member votes.

Ensuring quorum at an HOA annual meeting is essential for the community to make important decisions. By following these tips, HOAs can help ensure that the necessary number of homeowners attend the meeting and that decisions can be made effectively.

What Are the Five Different Types of HOA Meetings?

When most people think of HOA meetings, images of a town hall full of excited community members chanting for residential justice come to mind.

While most of the HOA meetings a board holds aren’t necessarily as action-packed as depicted in the movies, an HOA’s success really does depend on the decisions made at meetings held throughout the year.

If you are a member of an HOA and desire involvement within your community, understanding the meetings that keep an HOA grounded is a great start.

Here’s a closer look at the five types of HOA meetings and what makes each one unique towards benefiting those who live within its boundaries.

1.   Annual Meetings

Much like a presidential state of the union, an annual board meeting brings to light some of the largest decisions and issues a community faces as it heads into a new fiscal year.

As the name suggests, these meetings are held once a year and involve both the HOA’s board members and all community members who are willing to participate.

Aside from forecasting upcoming decisions for a neighborhood, an annual meeting:

  • Presents the annual budget
  • Elects new board members
  • Announces new major projects

2.   Board Meetings

These quarterly/monthly meetings are a board’s bread and butter for managing the responsibilities and addressing any urgent issues within the community. These meetings are open to all members of the community.

Everyone is informed of the meeting time and date ahead of scheduled meetings, and agendas are planned out to the minute. In fact the only topics available for discussion at these meetings are those that are on the agenda.

For this reason, the agenda is published ahead of schedule and delivered to the members of the community for review.

3.   Executive Sessions

Not all meetings are available to the general public. Sometimes decisions are made and confidential issues are addressed behind closed doors.

At an executive session, the board of directors typically discusses and votes on the following topics:

  • Litigation issues
  • Delinquent payments
  • Internal committee problems, and other private areas of discussion

4.   Committee Meetings

Larger HOAs may require committees to address specific needs within the community. From community watch to safety, and neighborhood events, there can be several committees assigned to a community that help make its cogs move smoothly.

Committee meetings are typically held annually or monthly (depending on the importance of the committee). At these meetings committee members and members of the board discuss prominent topics that pertain to the committee’s responsibilities.

Each meeting provides minutes that are accessible upon request by any member of the community.

5.   Special Meetings

Special meetings are rare events that only happen when an emergency situation arises within the community. From natural disasters to damage to community property that requires immediate repairs, special meetings have shorter notice requirements than other meetings but only the specified topic may be discussed or voted upon.

These are not executive meetings and minutes are still taken at these meetings and are available to members who want to review them.

Organize Your HOA’s Essential Meetings With Goodwin & Company

As a board member, you have a lot of responsibilities on your plate. The stress of administrative services shouldn’t be one of them. The team at Goodwin & Company knows how important it is to have complete focus on the decisions that drive a community to success.

Let us help you tackle your key responsibilities as a leader while we handle the behind-the-scenes administrative work for you. We are well-versed in:

  • Dues collection
  • Homeowner communications
  • Record keeping
  • Financial forecasting
  • Vendor services
  • Project coordination, and more!

Contact us today to learn more about our services and how we can help you keep your focus on your community where it counts.