Untangling HOAs BY DEREK MOBRAATEN
T
he history of homeowner associations (HOAs) goes back to the 1960s when approval was received from local governments to build communities that could be completely selfsufficient. In other words, these communities would be maintained and governed not by tax dollars from cities and municipalities, but rather by assessments paid by the homeowners of the community. The ideal presupposed board would be educated enough to manage an association. Each HOA would need a board of directors that would, in most cases, volunteer their time, often unwillingly, to serve on the board and make expert management decisions. Fast-forward to today: HOAs are here to stay, and in fact, the industry is growing! With such growth, the demand for boards to acquire a vast knowledge of building maintenance, corporate finances, insurance and risk management, political and people skills, etc., is only getting more challenging. HOA boards are exposed to ever-increasing risk, both personal and community risk. The ability to wear all these hats well is an additional requirement. It goes without saying that every board member needs tools in their tool belt. These tools are
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ISSUE ONE 2022 | ECHO journal
