The Role of the Board of Directors
By Michael Madson
Ahomeowners association is the cornerstone of a planned community. When run properly, it brings continuity, preserves architectural integrity, maintains common areas, protects property values, and promotes the concept of “community.” Every association should be responsible for its assets and operation in accordance with state laws and the community’s governing documents.
To be effective, an association should have a strong board of directors whose members know the responsibilities that come with their volunteer positions, including the need to govern uniformly and fairly, and have a clear understanding of the association’s strengths and weaknesses, its history, and what needs to be accomplished. The board’s authority includes all of the powers and duties contained in state statutes, as long as these are consistent with the provisions of the governing documents.
This overview can be especially useful for community managers helping onboard newly elected, first-time board members.
The board of directors has a fiduciary obligation to the association and its residents. It requires board members to govern in the best interests of the community by acting in good faith, exercising due diligence, establishing trust, and working within the scope of their authority.
When a member accepts a position on the board, he or she should learn about the duties and responsibilities of their role. Board members cannot be excused from improper action on the grounds of ignorance or inexperience; if they do, they open up the association to potential liability due to negligence and mismanagement.
Operating a homeowners association carries many of the same duties and responsibilities as overseeing any other business. Serving as a board member is a valuable and rewarding experience that should be undertaken by those who see it as an opportunity to serve their neighbors while protecting and enhancing the community.
Continue reading here: The Role of the Board of Directors – HOAresources (caionline.org)