According to figures from the Foundation for Community Association research, there are around 2258,000 neighborhoods in the USA under HOA governance with around 74 million individual residents living in these communities.
While you'll find HOAs in more or less every city in the US, people often don't fully grasp what the HOA does. Are you interested in learning more about HOA board duties and how the board gets involved in community leadership and management?
Read on to learn more about this effective form of community leadership.
Fair Enforcement of the Rules
One of the most important of the board member roles is coming up with fair rules. The main purpose of the HOA is to maintain and boost local property values. HOA rules should help achieve that goal without overreaching.
They also need to be enforced fairly. The HOA can't give favorable rulings for certain people or turn a blind eye to rule breakers.
Competent Financial Management
As a HOA resident, you'll need to contribute to HOA finances. Usually, this is through monthly dues. In turn, the HOA must be open and transparent about how they spend those funds.
You should be able to see a detailed budget that outlines the HOAs expenditures and budget. You should also expect your HOA to manage money competently. For example, when hiring contractors, a good HOA will shop around and leverage its professional network to get the best possible deal for the community.
Maintenance of Common Areas
One of the best parts of HOA living is having access to common areas and amenities. Your HOA might build things like:
- Cycle paths
- Tennis courts
- Neighborhood parks
Of course, such things need maintenance and repairs. If amenities fall into disrepair, they could require expensive repairs. A good HOA gets the best deal for the community by doing preventive maintenance.
According to Brightly Inc, this is almost always better than doing reactive repairs. Their figures suggest a preventive approach could reduce costs by 12-18%.
Effective Conflict Resolution
Of course, there's more to community management than finances. The HOA is also responsible for handling conflict. While some degree of disagreement is inevitable, the HOA board is instrumental in preventing an argument from escalating into a long-term feud.
Having well-written and fair rules is one way to diffuse conflict, but if things escalate, the HOA is responsible for solving the conflict. In serious disputes, the HOA might bring in a neutral third-party mediator to ensure impartiality and fairness.
An Effective HOA Board Works With Experts
As you can see, the HOA board has a lot of responsibility. Not only do they need to be competent and comprehensive in financial matters, they also need to have strong people skills. To avoid accusations of bias, many HOAs choose to work with professional property management companies.
Here at PMI Fort Bend, we know what it takes to run a successful HOA board. We have a strong track record going back decades and we can call upon the extensive expertise of the PMI franchise to help with challenging governance decisions.
Contact us today, and let's discuss your HOAs needs.
