Homeowners Associations (HOAs) play a significant role in many Colorado neighborhoods. They help preserve property values, ensure a consistent community aesthetic, and provide shared amenities to residents. The heart of the HOA is its Board of Directors — a group of dedicated volunteers shaping the community for the betterment of homeowners. If you’re considering becoming an HOA Board member or are curious about their work, here’s a breakdown of their responsibilities, positions, and rules.
What Is An HOA Board?
An HOA Board is the governing body of a homeowners association. It’s comprised of homeowners elected by their fellow residents to make important decisions on behalf of the community. The Board’s main responsibility is to uphold the HOA’s governing documents, which include the Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and rules. Think of these documents as the community’s constitution.
HOA Board Member Duties Explained
HOA Board members have several crucial duties that can be grouped into these main categories:
Fiduciary Duty
Board members must act in the association’s best interests, placing the community’s well-being above their own. This requires making informed decisions, avoiding conflicts of interest, and always acting with good faith.
Maintenance and Repairs
The Board is responsible for the upkeep of common areas like parks, pools, or clubhouses, as well as any other shared property. This involves scheduling regular maintenance, overseeing repairs, and addressing any issues promptly.
Financial Management
HOA Boards carefully handle the community’s finances. They create budgets, collect dues, pay bills, establish reserve funds for major repairs, and seek professional guidance for financial decisions.
Enforcement of Rules
The Board ensures that all homeowners comply with the HOA’s CC&Rs and rules, promoting a harmonious community. This might involve sending violation notices, mediating disputes, and occasionally levying fines.
HOA Board Member Positions
Common HOA Board member positions and their respective responsibilities:
- President: Leads Board meetings, oversees overall operations, and serves as the primary representative of the HOA.
- Vice President: Supports the President and steps in when they’re unavailable.
- Secretary: Maintains meeting minutes, records official decisions, and handles HOA correspondence.
- Treasurer: Oversees the HOA’s finances, manages budgets, and provides regular financial reports.
- Directors: Additional Board members who participate in decision-making and may oversee specific committees within the community.
Rules For HOA Board Members
To ensure ethical and effective governance within the HOA, Board members must adhere to specific rules outlined in Colorado law and their community’s governing documents. Here are some key rules to follow:
Follow governing documents. Always uphold the HOA’s CC&Rs, bylaws, and rules.
Prioritize transparency. Provide homeowners access to meeting minutes, financial reports, and decision-making processes.
Hold regular meetings. Conduct Board meetings in compliance with state laws and the HOA’s governing documents.
Avoid self-dealing or conflicts of interest. Put the HOA’s needs before your own personal interests.
Serve Your Community Better with Goodwin and Company
Being an HOA Board member is a fulfilling way to support your community, but it’s also a substantial commitment that can be overwhelming. If you need expert support, an HOA management company like Goodwin & Co. can relieve the administrative burden. At Goodwin, we provide Colorado HOAs with professional financial management, administrative support, maintenance coordination, and more. Our expert guidance can help your Board make informed decisions and focus on what matters most: building a thriving community.
This article provides general information about HOA Boards. For specific advice on your HOA or legal matters, consult with an attorney specializing in HOA law.
