As of 2021, statistics show that HOAs manage 358,000 neighborhoods in the United States. Further, 74.2 million Americans live in an HOA community, and 2.5 million serve on an HOA board.
The HOA board plays a vital role in an HOA community. They keep a watchful eye that will directly impact the experiences that residents have while living there and affect the resale value of their property. These are big shoes to fill, but the entire HOA community will benefit from the correct individuals in charge.
There is much more to serving on an HOA board than attending the HOA meetings and answering residents' questions. Here is a look at the "behind the scenes" tasks you won't see daily.
1. Protect and Increase Property Values
This is the primary duty of the HOA board. The homes in the HOA community are a valuable, personal asset to all who own property there. Decisions from the board will directly impact the value of each member's property.
Therefore, the HOA board will oversee the maintenance of common areas. This includes ensuring that they are well-maintained and funded responsibly. Common areas include pools, athletic facilities, gates, parks, clubhouses, etc.
There are many HOA member responsibilities, too, including following the rules and regulations of the HOA community. The HOA board creates the guidelines for HOA rules regarding trash collection, lawn care, paint color, parking, etc.
2. Conduct Financial Business
The board oversees the HOA's management of finances. This includes many tasks, like:
- Collecting assessments
- Maintaining reserve accounts
- Drafting and approving annual budgets
- Paying association expenses
- Record keeping
- Handling all financial accounts
- Establishing financial policies
While this can be tedious, it is vital for the association. The HOA board ensures the association has enough funds to pay bills and maintain common areas.
Equally important is that they must financially prepare for the future. This includes hiring a professional HOA management company to delegate day-to-day responsibilities, even though the board is ultimately in charge.
3. Ensure Compliance and Governing Documents
Another critical role of HOA member responsibilities is remaining compliant with the HOA community's governing documents. Enforcing compliance among its members should not be viewed as punishment. Instead, it is about being uniform and maintaining the community's esthetics.
This is how to protect property values. The HOA board must have tremendous knowledge of their community's governing documents. Further, they must also be current with state, federal, and local laws that may affect the HOA community.
Duties of the HOA Board
Everyone benefits when you have the right people serving on the HOA board. You know that the community is financially sound, the common areas are well-maintained, and rules will be enforced.
For the HOA board to be most effective, they need the correct HOA management to help them. That's where PMI Reliance comes in. We'll manage your Suwanee association with the customized services your HOA community deserves because we understand that each association is unique.
With our experienced HOA management professionals, we will deliver exceptional services. Learn more about our innovative approach. Contact PMI Reliance today.
