HOA resolutions are set in place to ensure that a community Board effectively manages a community and makes all of the right decisions during board meetings. Essentially, resolutions are governing documents that bring validation to a board’s actions for a community.
Since resolutions go beyond the standard rules and regulations that can easily change to meet new state, federal, and local requirements, there is definitely a process a Board should follow when its members decide a new resolution is best for the community.
Here’s a closer look at the proper steps a Board and HOA management team should take to ensure that a new resolution is enacted with essential due diligence.
How Should Your Board Approach a New Resolution?
Since resolutions usually involve subject matter like policies, procedures, and special individual situations that impact a community, they can’t simply be created and enacted on a whim. Here are the appropriate steps a Board should take when attempting to create a new HOA Board resolution.
Review State Laws
Before any action can be taken to create a new resolution, it’s essential that the board reviews the legality of their decision. State and local laws typically trump any changes an association makes in its operations.
A quick chat with your association management team or legal advisors should easily clear up the legalities of the resolution. If all is clear, move forward with the following steps. If not, it’s unfortunately, back to the drawing board.
Know the Authority of Your Board of Directors
Not all governing documents are drafted in the same language. So, before moving on with the creation of a resolution, consult your association governing documents. Only then will you know if your board is legally able to make new resolutions within the community.
Understand Why This Resolution is Necessary
Before you really dig into pushing a new resolution onto your community, do your research and answer the following questions:
Why does your community need this resolution?
How would it impact owners?
How will the board enforce this resolution?
Are all board members in agreement with the resolution?
Does the resolution create a long-term solution to a current problem?
Once you’ve answered these questions and others that fellow HOA board members may pose, you should have all of the research necessary to begin drafting and filling out the details of your resolution.
Create a Draft
At this point, create a rough draft of your resolution that details the full extent of the resolution, what it resolves, and the specific bylaws that allow the board to complete the resolution.
Try to make this draft as close to the final resolution as possible, because the next step towards resolution creation involves bringing your ideas to your fellow owners.
Obtain Feedback From Owners
Circulate the draft of your resolution throughout the community and across your online portal’s community boards. Ask for feedback from those the resolution will impact the most. If owners know that their voices have been heard, the transition into the new resolution is less likely to be a contested effort.
Make Any Decisions With the Whole Board Involved
Once the details of your resolution are ironed out, it’s time for the Board to take a final vote. In order for a resolution to be passed, board members must vote based on all community voting procedures.
If the resolution is passed, the president and secretary of the Board will sign and date the document.
Create Resolutions With Experience Through Goodwin & Company
If you are a member of a community’s Board of Directors and know that your team needs help from a property management firm, Goodwin & Company is ready to speak with you.
We are an association management team that has experience with resolution changes and other behind-the-scenes essentials that dictate the path for a community’s success. We’ve helped associations of all sizes make the best decisions for their owners, and know that we can help you.
Contact us today to learn more about our services and how you can become a part of the Goodwin & Company family.