THREE ESSENTIAL PRACTICES FOR HOA BOARD MEMBERS

BY: STEVEN PENN, CMCA, AMS AND JAYCEE GERBER

As an HOA board member, you hold a pivotal role in maintaining the well-being and financial health of your community. You are responsible for acting as a collective voice for your community members. To ensure that you are serving your community effectively, there are key practices that you should adopt. Here are the top three best practices for HOA board members:

1. Budget for Long Term

Planning financially for the future is crucial in maintaining the stability and growth of your community. There are things you can plan for and things you can’t but learning how to budget can help you in the future when these surprise expenses show up in your community. Long-term budgeting helps in preparing for major expenses such as repairs, upgrades, and unexpected events. Having a proper budget in place can help prevent the need for imposing substantial special assessments. Many things can be included in a budget such as upcoming projects, changes to landscaping, common area maintenance, and others. Every community is different and has its own needs. When you are budgeting, try to prepare for those things that your specific community needs. Start by reviewing past budgets to anticipate future needs and consult with experts such as your reserve analysts, contractors, and your professional manager to ensure your community’s financial health remains strong for years to come. You can help minimize the stress of financial burdens on your community through this process.

2. Decide with Knowledge

Informed decision-making is the cornerstone of effective governance. Being a board member means you are not only making decisions for yourself, but you are required to exercise your fiduciary duties on behalf of your entire community. Every decision you make affects your association, so it’s vital to be well-informed and considerate. Always seek to understand the full context of any issue, gather input from a variety of sources, and consider expert advice when necessary. Remember you are there to help solve problems. With a mindset of solving issues, you can work to find the best options for your association. This approach not only enhances the quality of your decisions but also builds trust within the community which allows the association to function better as a governing body.

3. Be Transparent and Communicate

Transparency is key in building trust and accountability within your community. Ensure that all financial statements, decision-making processes, and board actions are accessible to the homeowners. This allows them to understand the workings of board members and gives clarity on why certain decisions are made or handled in specific ways. Regular communication through community meetings, newsletters, or a dedicated online portal helps keep everyone informed and engaged. Newsletters and community meetings allow community members to be informed about the important changes in the association. By being transparent, you foster a sense of community and cooperation among residents. Every member within a community is different and has a unique situation, yet you as a board member are charged with considering and representing their interests. Taking on these challenges while being transparent helps to avoid problems of miscommunication and enables you to function as a community with trust and confidence.

Implementing these best practices will not only improve your effectiveness as a board member but also enhance the overall quality of life in your community. Remember, the strength of your governance lies in the trust and collaboration you build with your homeowners.

Steven Penn, CMCA, AMS is the President of Alliance Association Management located in Temecula, CA. He can be reached at steven@thealliancemgt.com.

JayCee Gerber is the Assistant Manager at Alliance Association Management. She can be reached at jaycee@ the alliancemgt.com.