Serving on the board of directors of a homeowners association is a responsibility that should be taken very seriously. The vast majority of residents who run for positions on boards have good intentions, but many newly elected board members have never served on a board and have no experience in governing a non-profit corporation. Whether you are a new or seasoned board member, here are our Top 3 New Year Resolutions for Association Boards that will help ensure that you and the boards you serve on are functioning appropriately and effectively:
We Will Understand and Follow the Governing Documents of Our Association
One of the most important functions of the board of an association is to understand and follow on a consistent basis the governing documents of the association which include the Articles of Incorporation, Bylaws and Declaration. These documents detail how the association is to be governed and the roles and responsibilities of the board and homeowners. As a result, it is essential for every member of an association board – as part of the routine governance process – to review, understand and follow the governing documents. If members of a board do not understand provisions of the governing documents, we recommend the board consult with legal counsel to obtain advice on the meaning of the provisions to ensure the board is acting in compliance with them.
We Will Utilize Educational Resources to Ensure We Are Governing Effectively
Association boards are required to provide governance and oversight on a multitude of issues ranging from the upkeep and maintenance of common elements, to the creation of an annual budget, to determining how best to address covenants violations by residents. It is impossible for boards to be well-versed on every issue or item that comes before them As a result, it's important for board members to take advantage of educational opportunities to help ensure they have the knowledge and resources needed to act in the best interests of their communities.
HindmanSanchez offers the following educational resources that are free-of-charge to residents and volunteer leaders of homeowners associations:
Board Member Educational Opportunities:
Community E-ssentials Newsletter
Blog Postings on HOA Legi-Slate
Articles and Publications on our website at www.hindmansanchez.com
In addition to the educational resources available from HindmanSanchez, management companies and the Rocky Mountain and Southern Colorado Chapters of Community Associations Institute also provide educational opportunities and resources for board members.
We Will Seek Expert Advice and Assistance When Necessary
You wouldn't consult a foot doctor to have a wisdom tooth extracted. Likewise, board members wouldn't consult with legal counsel to determine the appropriate application of pesticides to address a rampant weed problem. When board members are faced with significant issues in which they have no expertise, it is important for boards to obtain expert advice to ensure that fully-informed and appropriate decisions are made. Here are some common areas that require expert advice:
Conducting a Reserve study – Reserve Specialist
Investing Reserve Funds – Investment Broker
Purchase of Association Insurance Coverage – Insurance Broker
Assessing the Condition of Common Elements Prior to Transition - Engineer
Audit of Financial Records – Certified Public Accountant
Review and Revision of Governing Documents – Legal Counsel
While we cannot guarantee that following these Top 3 New Year Resolutions for Association Boards will create a problem-free 2008, we can guarantee that they will help equip board members to make well-informed decisions that are in the best interests of their communities.
