Your HOA
President’s Message By Michael Breslin SRCA Board President
After the SRCA Annual Meeting later this month, I will no longer be on the board, as I have termed out after serving six years on the SRCA Board of Directors. I have found it to be one of the most enjoyable and rewarding experiences of my life as I interfaced with the SRCA staff and the many board and committee members throughout the years. I strongly recommend that each eligible SRCA homeowner takes advantage of our annual BOD election process so you too can share in my personally enriching experience. As I write my last article as president for the SRCA magazine, I would like to ref lect on what I have found to be the basic principles that boards must use as best practices to create and maintain harmony, reduce conf lict and build a stronger, more successful community. Reprinted with permission from the January/February 2020 issue Community Manager, a bi-monthly newsletter published by the Community Associations Institute (CAI). www.caionline.org Best Practices / Tip to Help Better Govern Communities Governing fairly, responsibly, and successfully should be the guiding principles for community association boards. How? Embrace these 15 guidelines. They’ll help your association board increase harmony, reduce conf lict, and build a stronger, more prosperous community. 1. Conduct annual meetings. Hold at least one membership meeting annually and provide appropriate notice to homeowners. 2. Conduct elections. Hold fair and open elections that provide all candidates an equal opportunity to express their views. Associations should allow a representative from each candidate to observe the vote-counting process. 3. Disclose conf licts of interest. Reveal all personal and financial conf licts before assuming a board position and, once on the board, before participating in any board decisions. 4. Fulfill fiduciary duty. Act within the board’s authority, exercise due care, and act in good faith and with ordinary care in the best interests of the association. 5. Be financially transparent. Share critical information and rationale with residents about budgets, reserve funding, special assessments, and other issues that impact their
4
April/May 2020
financial obligations to the association. Give residents an opportunity to ask questions and engage in dialogue on these matters. 6. Collect assessments. Levy and collect assessments and other fees from homeowners in a timely and equitable manner. 7. Budget for reserve funds. Account for anticipated longterm expenditures as part of the annual budget-development process, commissioning a reserve study when professional expertise is warranted. 8. Budget for insurance. Protect the community’s assets and mitigate risk. 9. Foreclose only when necessary. Initiate lien and foreclosure proceedings only as a last stop in a well-defined debtcollection procedure and only after other, less-disruptive measures have failed to resolve a serious delinquency. 10. Distribute and enforce rules. Uniformly enforce all rules, including architectural guidelines. Request input from residents when developing new rules and communicate new rules effectively. Ensure rules are readily available to all residents and owners. 11. Establish and adhere to an appeals process. Allow residents an opportunity to correct violations before imposing fines or other sanctions. The board or a board-appointed committee should adhere to standard procedures for resolving disputes. 12. Communicate. Provide regular communication (emails, f lyers, newsletters, website, etc.) with residents and use it to report substantive actions taken by the board. 13. Share records. Allow homeowners reasonable access to appropriate community records, including annual budgets and board meeting minutes. 14. Know and follow the law. Govern the community in accordance with all applicable laws and regulations. Regularly review governing documents to ensure legal compliance and to determine whether amendments are necessary. 15. Continue learning. Commit to staying informed of trends related to community association board governance. Note: Community association boards should consult with the appropriate professionals to ensure their association is governed in accordance with applicable governing documents and laws. Some governing documents and laws may require adherence to the above principles or principles like them.
