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Now That You're on the Board - HELP
Now That You're on the Board - HELP!
By Brigadier General (Retired) Guido Portante
WHAT EVERY HOA BOARD MEMBER NEEDS TO KNOW:
When you have been elected or appointed to serve on a Homeowners Association (HOA) Board, it is important to understand exactly what HOA board service means. In simple terms, your job as an HOA board member is to protect and enhance your community. This means maintaining and increasing home values and representing the best interests of ALL your neighbors. In our litigious society, the courts view you as a director of a nonprofit mutual benefit corporation. As such, you have clear fiduciary duties as a corporate board member. If you and your board fail, you are placing yourself, your community, and individual homeowners at risk. For many residents, their home is their largest asset so the impact of bad decisions or even inaction can be devastating.
YOU HAVE A DUTY AND A RESPONSIBILITY TO BE AN EDUCATED HOA CORPORATE DIRECTOR:
Why education? CAI tells us that current and future board members can expect:
• More Legislation
• More Regulation
• Progressively more complex Board Fiduciary Requirements
• Required Education for Board Members and Certifications
The Community Associations Institute (CAI) is the primary source of education for HOA board members worldwide.
With 64 chapters in the U.S. and nine countries, CAI tracks laws, regulations, and best practices and provides its members with the education they need to competently conduct HOA business. You can visit CAI here: www.caionline.org.
The Community Associations Institute Coachella Valley Chapter (CAI-CV) is one of the 64 chapters in the U.S. located here in the Coachella Valley. Between CAI and CAI-CV, board members can find a plethora of information to guide them to become educated, knowledgeable, and effective.
CAI-CV Mission Statement: The Mission of the Community Association Institute-Coachella Valley Chapter is to be the authoritative source for HOA Education, leadership development, and networking provider to HOA boards, managers, and supportive businesses with the tools they need to foster a Better HOA Living.
You can visit CAI-CV here: www.cai-cv.org
COMMUNITY BOARD MEMBERS ARE NOT EXPECTED TO KNOW EVERYTHING.
Many board decisions require specific knowledge that typical board members don’t have. Fortunately, boards are not expected to know everything, but they are expected to rely on the advice of professional advisors, including licensed professionals, and credentialed managers. Relying on professional advisors is a good idea even if you have certain expertise like a contractor on your board. Relying on an independent professional advisor transfers risk away from the board. CAI-CV can help you find the right advisors. In the area of community association management, CAI is the primary source of education and professional designations for community association managers. Make sure your manager has one or more of these certifications: Certified Manager of Community Associations (CMCA), Association Management Specialists (AMS), Large-Scale Manager (LSM), Professional Community Association Manager (PCAM), management
companies – Accredited Association Management Company (ASMC). Businesses that support HOAs can also take advantage of CAI’s education and designations, including the Reserve Specialists (RS), Community Insurance and Risk Management Specialist (CIRMS), College of Community Association Lawyers (CCAL), and the Educated Business Partner (EBP) distinctions.
FEATURED LISTING
NOW THAT YOU ARE ON THE BOARD – WHAT’S NEXT?
First Step: Join CAI and CAI-CV. Being a member allows for access to a lot of information that is just a click away. Participation in professional organizations such as CAI and CAI-CV helps cut through the “red tape” you will encounter as a board member.
WHAT ARE THE COSTS? Associations are encouraged to budget the following: cost for board members to become members of each CAI and CAI-CV. Currently, associations can join up to 15 board and committee volunteers for only $250 per year. Membership information can be found at: www.caionline.org/JoinNow/ Pages/default.aspx
Second Step: Enroll in the CAI Board Member Development Workshop, also known as the Board Leader Certificate Course. This is an online course consisting of five modules that can be taken over a period of days by board members. Visit CAI here: www.caionline.org. Once this course is completed the Board member will receive the course PowerPoint slides, hard copy brochures, and manuals for future reference and use.
Third Step: Attend CAI, CAI-CV and Desert Cities HOA Council education. CAI-CV members receive invitations for monthly courses on numerous topics, and to programs taught by HOA attorneys. Taking these classes keeps you
informed about regulatory changes, and provides you with a way to ask general legal questions. Members also receive CAI-CV’s monthly HOA Living Magazine, which includes interesting educational articles and listings of many vendors and professional advisors. HOA Living Magazine is another tool to assist a board member's education process.
Fourth Step: Download the Davis- Stirling Act of California, at www. davis-stirling.com. Laws impacting
homeowner associations include the Business & Professions Code, Civil Code, Code of Regulations, Corporations Code, Government Code, Health & Safety Code, Penal Code, Tax Code, and the Vehicle
Code. All of which a board member will need to access to determine how to proceed with any issue. For example, how to conduct board meetings, and to learn how elections are determined.
Fifth Step: Access your homeowners’ governing documents and have them readily available for searching out information on how your association conducts business.
Articles of Incorporation: This document establishes the association, names the association, and delineates the purpose of the corporation.
Covenants, Conditions, and Restrictions (CC&Rs): Provide a legal description of the property and describe common areas within the association.
CC&Rs govern what owners may, or may not do with their real estate and provides for the establishment of a community association and protocol for levying assessments. This document contains many for managing an association by its association board.
Bylaws: Establish governing regulations for the operation and management of the community association regarding membership, voting requirements, election procedures, committees of the board, and powers and duties of the board.
Rules and Regulations: Rules and Regulations are generally established by the Board (with input from members) to delineate procedures to resolve or prevent known problems. Examples: trash pickup, speeding within the community, and many other rules that are thought to enhance the safety, and protection of common property.
If you are interested in attending CAI-CV programs or joining the CAI-CV Homeowner Leaders Committee, call the CAI-CV office at (760) 341-0559.
BG (Ret) Guido Portante is the Chair of the CAI-CV Homeowner Leader Committee. He is a Board Member and Treasurer at Mira Vista at Mission Hills Homeowners Association. Guido can be reached by email to gportante@aol.com. You may find more information to help community board members at www.cai-cv.org.
