Who can serve on an HOA board? Can just anybody become a board member in an HOA community? We’ll talk about how to vet for candidates and evaluate them properly if they’re qualified for the position.

 

Who Can Serve on an HOA Board?

Homeowners associations are governed by a group of volunteers known as the board of directors. But who can volunteer to run for positions on the HOA board? Is it open to the general public or just a select few?

The answer is it depends. There are two things to consider when determining who can serve on an HOA board. First, we have state laws. Depending on where you are, there may be statutory requirements regulating board candidates. Some states have more comprehensive laws on homeowners associations than others, so state laws will not always contain explicit or implied directions.

California is one state with more detailed HOA laws. According to Civil Code Section 5105, only members of the association at the time of nomination are permitted to be candidates for board positions.

However, this requirement does not apply to spouses whose names do not appear on the title. While the purpose of this requirement is rather clear — it aims to limit board members to people who have the HOA’s best interests at heart — it has made it more difficult for small associations to find willing volunteers.

Many states don’t have this particular requirement, though it exists in most governing documents. Absent such a requirement, nothing would prevent a mere stranger or non-member from serving on the board. Some associations use language that restricts non-members from serving but allows lawyers and managers to do so. Whether or not that’s a good idea will depend on your association and your exact circumstances.

After reviewing state laws, the next place to look is your governing documents, particularly your bylaws. An association’s bylaws should contain specific HOA board member qualifications. If your bylaws are silent, consider amending them to create a more standardized matrix for board candidates.

 

Can an Owner With a Criminal Conviction Serve on the Board?

If an association’s bylaws don’t prohibit it, a homeowner with a past criminal conviction can serve on the board. Associations, though, are generally free to adopt a rule disqualifying an owner with a past conviction from becoming a candidate.

There are two reasons why an HOA might want to enact such a restriction. The first is due to insurance. If a person with a past conviction is elected to the board, the association’s insurance company may discontinue its current fidelity bond coverage or refuse to renew the policy.

The second reason is track record. Associations tend to deal with a lot of money, some even reaching millions. If a nominee has stolen money from an HOA in the past, it makes sense to disqualify them from serving on the board, especially if they’re seeking a treasurer role.

 

How to Vet and Evaluate Candidates

Considering the roles that board members play, associations should adopt a vetting procedure to check the qualifications of candidates. Here are some tips that can help both homeowners and current board members alike.

 

Set Up a Nomination Committee

The function of a nomination committee is to screen candidates for election. This committee is essentially in charge of checking whether or not nominees are qualified to run for a position on the board under state laws and the HOA’s bylaws. Of course, committee members should have no conflicts of interest with the nominees that may sway their judgment towards one way or another.

 

Establish HOA Board Member Eligibility Requirements

Eligibility requirements can vary from one association to another. State laws permitting, common requirements typically dictate that candidates must:

• Be a member of the association for more than one (1) year at the time of nomination;
• Have no delinquent dues or unpaid fines;
• Have no outstanding violations;
• Not be in ongoing litigation with the association; and,
• Not serve on the board at the same time as another person from the same household.

Again, it is essential to check the laws in your state. While many associations don’t allow candidates to have outstanding violations or fines, such a requirement is not always enforceable. For instance, California law does not permit an association to disqualify a nominee even if they have unpaid fines.

 

Homeowner Involvement

Homeowners should not only rely on the nomination committee. They should do their part as well by getting involved in the community. Homeowners should do their own research and get to know the candidates. In doing so, they can vote for the right people. After all, in the end, it is the homeowners who will be greatly affected by the decisions of the board.

 

Traits and Skills to Look for in HOA Board Members

When deciding which candidate to vote for, it is important to evaluate the characteristics and skills of the different people running. Here are some of the best qualities of an effective board member:

 

1. A Willingness to Serve

A board member must be willing to serve their community. Even with an impressive resume and an unrivaled skillset, a board member simply can’t do a good job if their heart isn’t in the right place. A good board member must always put the association’s best interests first, even if it means making a decision that would personally affect them in a negative way.

 

2. Honest

Money flows in and out of associations all the time, so there’s always that temptation. Board members should be honest and transparent. They must have an upright moral compass that compels them to do the correct thing every time.

 

3. Fair

Boards make decisions every day. They adopt resolutions, make rulings on violations, and select vendors — it’s all part of the job. Therefore, board candidates must exercise consistent and fair judgment in every aspect of their service. They must not give in to personal bias or emotion. And, when a conflict of interest arises, they must know to recuse themselves.

 

4. A Team Player

Far too many HOA boards fall victim to infighting, which can bring down not just the board but the entire community. Board members must know how to work with each other.

They must possess a collaborative spirit while still being open to professional discourse. The HOA board must always present a unified front to the homeowners, even if not all board members agree on something internally.

 

5. Accounting and Management Skills a Plus

Due to the nature of the responsibilities of board members, it would be great to have someone with accounting experience or a management background. Of course, while these skills can greatly help with operations, these alone should not be the basis of qualification.

 

Guiding You on the Right Path

As you can see, two things tell you who can serve on an HOA board: state laws and your governing documents. It is important to familiarize yourself with both to avoid confusion and potential liability. When in doubt, it is always best to consult a lawyer.

Condo Manager aims to make the lives of HOA board members easier with automated management solutions. Call us today at (800) 626-1267 or contact us online to learn more!

 

RELATED ARTICLES:

• What Happens When An HOA Board Member Resigns?
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• What Does An HOA Committee Do?

When an HOA board member resigns, very few homeowners associations know how to proceed. While the specifics will largely depend on the individual HOA, there are a few things all associations should do to make the process smoother.

 

HOA Board Member Resigns: What Happens Now?

Homeowners associations are run by a group of volunteers who are normally elected into positions. This group is known collectively as the HOA board. The HOA board is responsible for managing the community, sometimes with the help of committees and an HOA manager.

Associations typically need to have a set number of directors on the board as dictated by their governing documents. Every board member plays an integral role in the success of the association. As such, when one resigns, it can hinder the board’s ability to operate and make decisions.

To ensure your association can continue to function smoothly, it is imperative to know what to do in case an HOA board member resigns.

 

1. Make Sure the HOA Is Prepared

Preparation is the key to a proper response to an unanticipated situation. If a board member leaves their post, it can throw a wrench into the normal direction of the board. By planning ahead, HOAs can act quickly and avoid losing critical time.

But how can an association make preparations? To start, it is important to have the board review the governing documents of the HOA every year. The board should check the guidelines for board member resignations and see if they require updating. It is equally important to ensure these guidelines comply with state and local laws. When in doubt, it is always a good idea to consult an attorney.

 

2. Ask for a Resignation Letter

Prior to the acceptance of a board member’s resignation, the HOA board should ask to put everything in writing. The resigning board member must submit a formal letter of resignation. The letter should explicitly include the board’s intention to resign and the effective date of the resignation. This way, there is a paper trail.

 

3. Formalize the Resignation

After receiving the resignation letter, the board should add it as an item on the agenda of the next open board meeting. The board should follow Robert’s Rules of Order for accepting the resignation, which requires the board to formally make a motion to accept the resignation. Make sure the item also appears in the meeting minutes. After that, the board should file the letter for safekeeping.

 

4. Let the Residents Know

Homeowners have a right to know what’s going on in the community. And while some owners may find out about the resignation at the board meeting, you can’t say the same for all other residents. It is important to put out a formal announcement notifying the community that a board member has resigned. To ease the owners’ worries, the announcement should also explain the next actions of the board, such as how it intends to fill the vacancy.

 

5. Conduct an Exit Interview

Even though serving on the HOA board normally does not come with pay, it is still best to treat it as if it were a real job and go through all the formalities. This way, the association can maintain professionalism and avoid potential liability. Apart from formally accepting the resignation, the board should also consider conducting an exit interview.

The exit interview will help the remaining board members understand the reason behind the resignation. Common reasons typically fall under one of the following categories:

• The board member can no longer fulfill their duties and responsibilities;
• The board member is moving; and/or,
• There are irreconcilable differences with the other board members.

If the reason is due to personal conflicts with the board, conducting an interview may be uncomfortable. But, it is still necessary as it may provide valuable insight that may prove helpful to the board in the future.

When conducting the exit interview, make sure to use a standard set of questions. The remaining board members should never get personal or use this as an opportunity to berate the resigning member.

Some questions you can ask include:

• Can you expound on the reason you’re resigning?
• What did you like best about your position?
• What did you like least about your position?
• Do you have any suggestions to improve the board and community?
• Is there anything the HOA can do to prevent similar resignations in the future?
• Are there any other issues you would like to discuss?

 

6. Restrict Access to Privileged Data

Board members usually have access to privileged information and accounts. Because they are no longer part of the board, the resigning member’s access should be cut off. As such, make sure to remove the resigning member’s user credentials or change their password on all programs and websites. Restrict access to email accounts, internal documents, and other confidential information. Retrieve any hard copies of sensitive documents from the resigning member, too.

You should also notify the HOA manager, lawyer, and vendors of the change. This way, they will no longer include the resigning member’s email or contacts in distribution lists.

 

7. Fill the Vacancy

Depending on the circumstances, the HOA board will likely need to fill the open seat. Sometimes, a board can wait until the next election cycle. However, in other cases, the board will need to fill the vacancy to reach a quorum of board members and continue to conduct association business.

When it comes to filling open board seats after resignation, the board should look to both state laws and the association’s bylaws. More often than not, the HOA board can appoint a new board member to fill the resignation. In California, Corporations Code Section 7224 allows the board to appoint a new board member through unanimous consent, a majority of directors, or by a sole remaining director. If the board fails to appoint a new board member, members can petition for a special meeting to fill the vacant seat.

The board can choose to interview potential candidates prior to the HOA appointing a new board member. While the board can interview candidates in private, the vote to appoint the new board member should typically take place at an open board meeting.

 

8. Announce the New Board Member and Update All Materials

Following the appointment, the HOA board should make a formal announcement introducing the newly appointed board member. This way, all residents know about the change.

The HOA board should also make sure to update all association materials. Remove the name and contact details of the previous board member and replace them with the new one. Places to check include the HOA website, newsletters, letterheads, and distribution lists. Don’t forget to inform the HOA manager, attorney, and vendors as well.

 

The Final Word

Many boards find themselves at a loss when an HOA board member resigns. With this guide, associations can hopefully continue operations with minimal to no disruption. Of course, when in doubt, it is always best to consult a lawyer for guidance.

Condo Manager provides automated HOA management solutions to associations and management companies. Call us today at (800) 626-1267 or contact us online for a free demo!

 

RELATED ARTICLES:

• HOA Board Meetings: Types, Planning, And Purpose
• What Do The HOA Board of Directors Do For A Community?
• Are HOA Secret Meetings Allowed From Time To Time?

Committees often play a significant role in a homeowners association. But what exactly does an HOA committee do? And are there different types of committees?

 

What Is an HOA Committee?

An HOA committee is a committee of volunteer homeowners formed to fulfill a specific purpose. Committees support the HOA board by sharing a subset of responsibilities.

There are several benefits to committees. For one thing, they help the board juggle its many duties, which can be burdensome, especially for larger communities. Committees are also great for fostering engagement among association members; homeowners can volunteer their talents and allow them to contribute.

Finally, committees act as a gateway for future board members. Many homeowners feel apprehensive about joining the HOA board, and starting small — like joining a committee — can help nudge them in the right direction. If your community has difficulty filling open board seats, encouraging owners to join a committee will allow them to build enough courage to eventually step up to a larger role.

 

Types of HOA Committees

There are three general types of committees in homeowners associations: executive committees, standing committees, and ad hoc committees.

Executive committees consist entirely of the board. Standing committees are committees that have long-standing tasks and last indefinitely. Meanwhile, ad hoc committees are formed to carry out a specific purpose and dissolve after fulfilling that purpose. Both standing and ad hoc committees can have non-board members.

Committees can be further classified according to function. And while the types of committees associations have can vary depending on their needs, some committees are more common than others.

 

1. HOA Architectural Control Committee

The HOA Architectural Committee ensures that the community’s architectural guidelines are met. This committee constantly reviews the guidelines to identify areas of improvement, inspects the community for any violations, and oversees the architectural approval process. Depending on the HOA, this committee may be able to make decisions or be allowed to make recommendations to the board, making the final call.

 

2. HOA Landscaping Committee

The Landscaping Committee shares similar responsibilities to the Architectural Control Committee but more about landscaping. This committee is more common in single-family communities due to the nature of such neighborhoods. Additionally, some associations need a separate committee for landscaping and, instead, have the Architectural Committee perform this function.

 

3. HOA Finance or Budget Committee

The Finance or Budget Committee assists the board with budgeting and financial management. This committee’s responsibilities include helping the board with budget planning, expense tracking, bookkeeping, reserve management, and dues collection. Because of the nature of the duties, this committee usually works closely with or is led by the treasurer.

 

4. HOA Social or Events Committee

The Social or Events Committee instills community spirit and camaraderie among association members. This committee plans social gatherings, holiday events, and more. The HOA board typically sets aside a budget for this committee. Sometimes, this committee also takes on the role of managing the community’s social media presence.

 

5. HOA Welcome Committee

The Welcome Committee is in charge of all activities related to new homeowners. This committee might throw a mixer or get-to-know gathering for all new owners (if there are plenty) or introduce them through various communication channels. The Welcome Committee may also be responsible for putting together a welcome packet, which usually consists of the HOA’s governing documents, merch, guides, and FAQs.

You will typically see a separate Welcome Committee for larger communities. But, for smaller communities, the responsibilities of the Welcome Committee are usually absorbed by the Social Committee.

 

6. HOA Newsletter Committee

The Newsletter Committee is responsible for scheduling, planning, executing, and distributing the association’s newsletter. This committee was more common back when the Internet was not as ubiquitous. Nowadays, Newsletter Committees can still exist, though homeowners will usually feel their presence online through e-newsletters.

 

7. HOA Covenants Committee

The Covenants Committee, also known as the Violations Committee or Compliance Committee, helps the board will violations enforcement. Sometimes, the HOA board can handle this task on its own. But, particularly in larger associations, violations enforcement and tracking can quickly become too heavy. This committee can ease some of that burden by helping monitor violations, keep track of hearings, and suggest necessary rule changes.

 

How to Establish an HOA Committee

If your community wants to form committees, you must follow some key steps.

 

1. Confirm or Create Guidelines in the Governing Documents

The first thing you must do is check your governing documents for HOA committee guidelines. These guidelines will tell you whether or not you can form a committee, how you can go about the process, and any additional rules you may need to follow. You will have to create committee guidelines if you don’t have committee guidelines.

 

2. Determine Which Committees to Construct

The next step is to identify which committees to create for your association. This will depend on your community and board’s needs. A Finance or Budget Committee may be beneficial if your HOA board needs help with budgeting. If your board has trouble monitoring violations, then a Covenants Committee may be in order.

You will also need to write a charter for each committee you want to create. This charter dictates the following:

• Mission statement
• Budget
• Responsibilities
• Decision-making powers
• Authority limitations
• Timeframe of existence

 

3. Establish Structure and Roles

Committees can’t operate without structure. Similar to the HOA board, committee members should have designated roles. Each committee may require a chairperson who acts as the presiding member. It’s also good to have a secretary who can take minutes.

As for committee meetings, associations generally choose whether or not to allow owners to attend, depending on state laws and the HOA’s governing documents. The Open Meeting Act in California does not apply to committee meetings, though there may be an exception if most board members participate in the forum.

 

4. Recruit Members

The final step is to recruit members. Determine how many members can serve on a particular committee, then entice owners to join. While you can welcome any owners, it’s good to have a matrix of sorts when selecting committee members. Apart from skill, members should be willing to serve, maintain an open mind, and work well with others.

Board members can also join committees, provided your governing documents permit it. Typically, board members who serve on a committee act as the chair.

 

Which Committees to Have

An HOA committee provides benefits to homeowners associations and their boards. The exact responsibilities of such a committee will depend on its function. Assessing the needs of your community will help you determine which committees are worth your while.

Condo Manager offers advanced software solutions to HOAs and management companies. Call us today at (800) 626-1267 or contact us online for a free demo!

 

RELATED ARTICLES:

• A Guide For Homeowners Who Want Architectural Changes In HOA Homes
• What Are HOA Reserve Funds? When Are They Used?
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