What are the pros and cons of HOA loans?

An HOA loan is a long-term financial commitment, but it provides associations with the funds they need to complete necessary or emergency repairs. It is especially helpful for HOAs who have depleted reserves or those who are unable to levy special assessments. HOAs can benefit from the fast completion of projects but at the same time, have the payments spread over time. Perhaps, the main con of HOA loans is the increased financial burden on homeowners. Even though the increase is significantly less than what they would have paid with a special assessment, homeowners will still have higher monthly assessment dues. If your homeowners become delinquent, the HOA will have a hard time paying back the loan.

What is the fiduciary responsibility of HOA board members?

As fiduciaries, board members have a legal duty to act in the best interests of their HOA. Their fiduciary duty can be broken down into three parts: duty of loyalty, duty of care, and duty to act within the scope of their authority. Board members must act fairly and in good faith to promote the well-being of the entire community. Board members must make informed decisions. Board members must follow the scope and limitations of their authority.

What are HOA board member responsibilities?

As part of the HOA board of directors, you must ensure compliance with governing documents and laws, create annual budgets, collect assessments, maintain common areas, and protect the wellbeing of your community.

What are the specific roles of HOA board members?

The HOA president oversees all board members' activities and serves as the leader of the community. The vice president takes the president's place if the latter is unable to perform his or her duties. Meanwhile, the HOA secretary performs clerical duties such as taking down meeting minutes, sending notices of meetings, and maintaining HOA records. The HOA treasurer is in charge of the HOA's finances. He or she maintains the books, monitors collections and delinquencies, and creates the budget.

HOA Board Archives - Page 2 of 2 - HOA Management Software

Frequently Asked Questions On HOA Loans

admin on July 12, 2018

When faced with unexpected expenses or necessary repairs, not all homeowners have funded reserves or the capacity to levy special assessments. Instead, they will take out a loan. HOA loans require adequate planning and understanding the intricacies of association loans can increase your chances of approval as well as help you get the best rates.

Everything You Need to Know About HOA Loans

What Is an HOA loan?

An HOA loan is when you receive a sum of money from a bank, creditor, or financial institution in exchange for future repayment of the total amount loaned — called the principal — plus interest. The interest, which is a percentage of the loan, is the fee charged by the creditor for being able to use their money.

What Is the Purpose of HOA Loans?

One of the most common reasons for taking out a loan is for financing HOA projects or repairs. These could be capital improvement projects that have been long in the making or repairs due to unexpected or emergency situations.

In both cases, the HOA may not have enough funds to pay for the anticipated expenses. HOAs will then take out a loan so that the homeowners won’t have to pay for the entire cost upfront. With a loan, the HOA can spread the total amount over the span of a year or more.

How Do HOA Loans Work?

Compared to personal loans, these loans are issued to the HOA as a non-profit corporation. Thus, creditors do not need to review the finances of individual homeowners. Since associations do not own any property, loans are collateralized through the HOA’s right to assess.

Banks may require HOAs to itemize loan repayments in their annual budget as a sign of loan commitment or levy a special assessment in the amount of the loan plus interest to serve as collateral. In case an HOA is unable to make the loan repayments, the bank may ask for the right to collect from individual homeowners.

What Are the Different Types of HOA Loans?

1. Line of Credit

A line of credit is a flexible type of HOA loan where there is a preset borrowing limit. The HOA can borrow as much as they need until the preset limit is reached. The bank will only charge interest on the actual amount borrowed. Since the interest rate is variable, monthly loan payments are not fixed. A line of credit loan has quick-term periods; it can typically last from a year up to 5 years.

A line of credit is an interest-only loan. The HOA is only required to pay interest while repairs or construction are ongoing. Loan repayments start upon completion of the project or when the credit limit has been reached.

A line of credit loan is ideal for HOAs who have short-term funding gaps. It can bridge the gap until the time when the HOA can come up with sufficient funds. For instance, the HOA may take out a line of credit to repair property damage caused by a natural disaster.

Since repairs are urgent, the association can use the loan to pay for expenses while they are waiting for their insurance payout, which they will then use to repay the loan. A line of credit can also bridge the gap between homeowner assessments and the actual amount needed for repairs.

2. Standard Term HOA Loan

In a standard term loan, HOAs receive the entire loaned amount from their creditor. This is ideal for large-scale repairs or land acquisition. The term period can range from 5 to 15 years. The interest rate is locked so the association pays the same amount each month. Since the loaned amount can be high, HOAs can lower monthly payments by choosing a longer-term period. However, they will end up paying more due to interest charges.

3. Short-Term HOA Loan

This type of HOA loan is the same as a standard term loan, but with a shorter-term period. These loans can last from 3 to 10 years.

HOAs will have higher monthly loan payments but can become debt-free much quicker. You also pay less interest.

4. Line of Credit with Conversion

HOAs can also opt for a line of credit with conversion. This HOA loan has two phases. In the first phase, the loan exists as a line of credit. You will only pay interest on the actual amount borrowed.

At the end of 12 months or upon completion of the project, the loan is converted to a standard term HOA loan. The bank establishes HOA loan rates and the association will then start repaying the principal plus interest until the end of the term period.

What Are the Pros of HOA Loans?

An HOA loan is a long-term financial commitment, but it provides associations with the funds they need to complete necessary or emergency repairs. It is especially helpful for HOAs who have depleted reserves or those who are unable to levy special assessments. Even for HOAs who levy a special assessment, the amount is often not enough to cover all the anticipated expenses.

HOAs can benefit from the fast completion of projects but at the same time, have the payments spread over time. Even if the HOA incurs a debt, they can restore the quality of life of homeowners prior to the damage. Meanwhile, capital improvement projects can increase property values and attract potential homebuyers to the community.

What Are the Cons of HOA Loans?

Perhaps, the main con of HOA loans is the increased financial burden on homeowners. Even though the increase is significantly less than what they would have paid with a special assessment, homeowners will still have higher monthly assessment dues.

If your homeowners become delinquent, the HOA will have a hard time paying back the loan. Incurring debt may also be disadvantageous if your HOA board lacks experience when dealing with loan repayments and capital planning. These scenarios can put your HOA in a precarious financial situation.

Can Condo Associations Take Out Loans?

Both HOAs and COAs can apply for loans. However, it’s important to consult your governing documents to see if HOA loans are allowed. If so, what are the requirements or stipulations? For instance, most HOAs will require approval from the majority of the homeowners before the board can take out a loan.

HOAs should also check their state laws regarding HOA loans. For instance, some states prohibit HOAs to borrow from their reserves or use the reserve fund as collateral for the loan. It’s best to consult an HOA attorney to ensure that everything is okay from a legal standpoint.

How Do I Qualify for an HOA Loan?

HOA loan requirements will depend on the financial institution you are borrowing from. However, in order to assess your HOA’s credit risk, they may ask for the following:

Delinquency Rate and Total Amount of Delinquencies: If an HOA has a high delinquency rate, the bank may question your ability to make loan payments.
Total Number of Units and Percentage of Owners vs. Renters
Reserve Study: Banks may require an HOA reserve study completed in the last 2 years.
Current Amount in Reserves: Banks prefer HOAs with funded reserves so even if homeowners do not pay their dues, the HOA can still make loan repayments.
Scope of Repairs and Estimated Cost of Repairs
Capacity of HOA Board for Loan Management
Homeowners’ Support for Borrowing
Monthly Assessment Dues: Banks may be less likely to approve HOAs with already high assessment dues. If loan payments are further added, there is a higher chance of delinquencies.
Professional Team of Contractors: Banks will also assess the skills and capabilities of the team you are planning to hire for repairs or construction.

Are HOAs Eligible for PPP?

The Payment Protection Program (PPP) is a federal loan to help keep small businesses afloat, particularly in difficult times such as the coronavirus pandemic.

HOAs may apply for a PPP loan as long as funding is still available and the association meets the requirements.

How Do I Plan for an HOA Loan?

HOAs often underestimate the amount of planning required when applying for a loan. Adequate planning is a must if you want to increase your chances of approval. Do not wait until the last minute before consulting your bank. Talk to them early on so that you know which requirements to prepare. Many banks will even work with you throughout the process.

Another way to plan for an HOA loan is to establish the scope of repair and identify your team of professionals. The bank will use this information to determine the size of your loan and your credit risk. Choosing a highly-qualified team of professionals to conduct repairs can increase your chances of loan approval.

HOAs may also choose to levy a special assessment ahead of an HOA loan. The funds raised can be used to resupply your reserve account. This shows the bank that the HOA has several options for repaying the loan. Levying a special assessment can also help you flush out delinquent homeowners.

Are HOA Loans Right for Your Association?

After reading the FAQs about HOA loans, you have a better understanding of what is an HOA loan, how they work, and how to increase your chances of approval. Based on the information, you can also gauge if taking out a loan is reasonable for your HOA. If the HOA foresees any difficulties, it may be worth sticking to other funding options such as increased assessments or a special assessment. Ultimately, the decision will depend on your association’s needs and capabilities.

If you have additional questions about HOA loans and other financial requirements, feel free to contact the Condo Manager team today! Call us at (800)-626-1267, email us at sales@condomanagerusa.com, or contact us online to learn more about our HOA software solutions.

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What Do The HOA Board of Directors Do For A Community?

admin on February 23, 2018

A successful homeowners association requires a strong board of directors. It’s important to have HOA board members who can fulfill their roles and responsibilities to the community. Here’s what homeowners should expect from their HOA board of directors.

HOA Board of Directors: An Overview of Their Roles and Responsibilities

An HOA board is comprised of homeowners who volunteer to assist in the day-to-day operations of their community. The association grants these board members authority so that they can fulfill their HOA responsibilities to homeowners.

Fiduciary Responsibility of HOA Board Members

Board members are placed in a position of trust and authority, which they need to effectively govern their HOA community. However, to prevent board members from abusing their power, the association imposes a fiduciary duty on the board. It is an essential component of the board member code of ethics.

As fiduciaries, board members have a legal duty to act in the best interests of their HOA. Their fiduciary duties can be broken down into three parts: duty of loyalty, duty of care, and duty to act within the scope of their authority.

Duty of Loyalty: Those who hold board member positions must act fairly and in good faith to promote the well-being of the entire community. Board members must not make decisions that promote their personal interests or result in personal gain.
Duty of Care: HOA board members must make informed decisions. They must have sound judgment and do the necessary research before making decisions on behalf of the community.
Duty to Act: Board members must also act within the scope of their authority. They must follow the scope and limitations of their authority, which are outlined in the HOA’s governing documents.

These fiduciary duties of HOA board members ensure that they fulfill their roles and responsibilities.

A Complete List of HOA Board Member Responsibilities

Here is a list of the roles and responsibilities of the HOA board of directors.

1. Compliance with Governing Documents and Laws

Board members are tasked with ensuring that all homeowners comply with the governing documents at all times. This entails strict and uniform enforcement of HOA rules and regulations.

For instance, homeowners must follow the architectural standards of the association. Failure to do so will require appropriate action from the board — such as the imposition of violations and fines.

Board members also ensure that the HOA community abides by federal, state, and local laws. HOAs must comply with federal laws such as the Fair Housing Act (FHA) and Americans with Disabilities Act (ADA), as well as other state and local laws that apply to HOAs.

By ensuring strict compliance with the governing documents and laws, HOA board members can maintain a high standard of living for homeowners. Compliance is also crucial in preserving the property values of the entire community.

2. HOA Budget and Assessments

The annual budget is one of the main responsibilities of the HOA board. To create the budget, the board must determine necessary expenses including operating costs, utilities, insurance payments, and reserve contributions. They then look at the estimated income from homeowner dues to check if it is enough to cover expenses. Apart from creating the budget, the board must ensure that the budget is maintained throughout the fiscal year.

Board members also have a responsibility to collect assessments. They must take reasonable action to ensure that all homeowners comply with their collection efforts. Otherwise, the board has the authority to impose fines, liens, or foreclosures on delinquent homeowners.

3. Maintenance of Common Areas

The HOA board of directors is responsible for the maintenance and upkeep of common areas. Board members must create plans for meeting their maintenance responsibilities. Maintenance plans are essential so board members can keep track of assets and determine which ones need to be prioritized.

Board members perform routine inspections to ensure that shared assets are in good working condition and to avoid unnecessary breakdowns and extensive repairs. For instance, the board schedules monthly roof repairs to ensure that there are no leaks. This is cost-effective as emergency roof repairs can be very expensive.

They must also ensure that maintenance expenses are well within the limits of the annual HOA budget. If the HOA has a limited budget, the board determines priority maintenance tasks and ensures that deferred tasks do not put the community at risk.

4. Protect the Community

It is the HOA board of directors’ responsibility to protect the general well-being of the community. Along with uniform compliance and enforcement, board members must also ensure that there are no discriminatory practices or behaviors happening in their community.

They make sure that HOA rules are neutral and that homeowners are not judged based on their status, sex, race, or religion. It’s also important to provide individuals with disabilities with the accommodations they need to achieve a standard of living that is on par with other homeowners.

The HOA board must also promote procedures that will protect the community from crimes or injuries. For instance, if a certain house is posing as an immediate health or safety risk, the board has the authority to enter the premises and rectify the emergency situation.

Specific HOA Board Member Roles and Responsibilities

Apart from general roles and responsibilities, board members also have individual responsibilities based on the position that they hold. Here is a list of duties for the different HOA board of directors positions:

HOA President

The HOA president serves as the leader of the board. He or she supervises other board members and oversees most of the board’s activities. An HOA president also presides over board meetings and establishes order and decorum; appoints committees and delegates tasks; represents the HOA in activities and events and serves as the authority on HOA rules and governing documents.

HOA Vice President

The HOA vice president assumes the roles and responsibilities of the president in his or her absence. This ensures a smooth flow of business even if the president is absent. As such, the vice president must have the same capabilities as the president. The vice president may also perform duties that are assigned to him or her by the board.

HOA Secretary

The HOA secretary performs a variety of clerical duties. They keep the minutes of board meetings and publish them in a timely manner, provide proper notice of meetings, keep official records and documents, maintain a master list of homeowners, distribute reports and documents during meetings or upon request, keep track of document deadlines and requirements, and certify documents that are submitted to third parties or authorities.

HOA Treasurer

The HOA treasurer is tasked with maintaining the finances of the community.

This includes accounting and maintaining financial records; overseeing collections and monitoring delinquencies; receiving monies and checks; creating and maintaining the annual budget; creating financial reports for the board and homeowners. The treasurer may also receive assistance from an HOA management company or use HOA software to perform their duties.

HOA Board of Directors Qualifications

The requirements or qualifications for being a board member will depend on your governing documents. Though not all HOAs will require their board to have a degree or experience in community management, it’s important for aspiring board members who have the initiative to learn about managing an HOA. To fulfill HOA board member roles and responsibilities, it’s also important for aspiring members to know their governing documents by heart. Choosing a qualified board of directors can then prevent financial mistakes and other consequences that can impact the wellbeing of the community.

Serving Your Community as Part of the HOA Board of Directors

If you think that being part of the HOA board of directors is all about power and authority, think again. Becoming an HOA board member is not easy; you’ll be faced with what seems like a never-ending list of tasks and responsibilities. As a volunteer position, there’s no compensation for being a board member either.

However, if you have a passion for serving your community, joining the HOA board of directors may be one of the most fulfilling roles that you’ll ever have. So make sure to talk to your HOA about board member opportunities.

Does your HOA board of directors need help with community management? If so, feel free to reach out to the Condo Manager team today! Call us at (800) 626-1267, email us at sales@condomanagerusa.com, or contact us online to learn about our HOA software solutions.

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Know Your Rights: Legal Rights For Condo Owners

admin on December 18, 2017

Many condo owners feel like they are not in control. They must follow condo association rules to the letter or else, face steep fines and fees. While compliance is certainly a prerequisite for living in a residential community, that doesn’t mean that you have to endure injustices or incompetence from your association. Always keep in mind these legal rights for condo owners.

What Are the Legal Rights for Condo Owners?

When owners purchase a unit in a condo association, they agree to take on certain duties and responsibilities, such as paying association dues and complying with the governing documents. In exchange, they receive condominium ownership rights, which gives owners the authority to use their unit in a manner that affords them a high quality of life.

Here’s a brief recap of the different documents that govern a condo association:

Condo Bylaws vs Rules and Regulations vs Declarations

Condo bylaws outline the procedures for how the association is to be run, particularly by the board of directors. This governing document includes the number of board members, duties and responsibilities of the board, length of board member service terms, frequency of board meetings, and board election and quorum requirements.
Declaration of covenants, conditions, and restrictions (CC&Rs) establish the “ground rules” for the condo association. This governing document also establishes the obligations of condo owners to the association and vice versa.
Condo association rules and regulations refer to the “do’s and don’ts” in your community. The board of directors creates rules and regulations that are in line with the condo association’s CC&Rs. While CC&Rs are recorded with the county recorder’s office, the rules and regulations are not. Thus, rules and regulations have more flexibility and can be amended according to established procedures.

Condo Laws

Federal, state, and local laws will always prevail over a condo association’s governing documents. If there is a stipulation that goes against condo laws, they then become unenforceable HOA rules. Condo laws vary by state so it’s important to check your local laws when determining legal rights for condo owners.

7 Legal Rights for Condo Owners

Buying a condo affords you certain rights such as exclusive ownership of your unit, the authority to rent or lease the unit, and the freedom to use shared facilities without fees. To have a pleasant condo living experience, keep in mind these legal rights for condo owners.

1. The Right to Access Condo Documents

Condo owners can, at any time or for any purpose, request to see the association’s governing documents, as well as financial reports, annual budgets, board meeting minutes, vendor contracts, reserve account statements, and insurance policies.

The only exception would be for documents with confidential information such as delinquencies. Condo owners also have the right to inspect these documents and make personal copies. Following a written request, the board must provide the documents to the condo owner.

2. The Right to Equality and Non-Discrimination

It is against the law for condo associations to discriminate against their owners based on race or ethnicity, nationality, religion, sex, sexual orientation, marital status, familial status, and disability.

Condo associations must abide by federal laws such as the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA), as well as state and local laws.

Condo owners with disabilities also have a right to reasonable accommodations such as ramps and handrails so that they can have full access to their unit and the condo’s facilities. Similarly, service animals and emotional support animals are allowed as reasonable accommodations even if the condo has a “no pet” policy.

3. The Right to Notice and Meetings

Condo owners have a right to receive adequate notice of upcoming board meetings. Notices must be placed on common areas, including the entrance and elevators, or announced through text, email, social media, or the association website.

Condo owners also have the right to requisition an association meeting and request items to be put on the board meeting agenda. While condo owners are free to attend board meetings (except for closed sessions), they are not allowed to comment — unless the board president has opened the floor for discussion.

4. The Right to Run and Vote During Elections

Condo owners have the right to run for board positions and vote during the annual board elections. You can vote in person or by proxy, as long as there is authentic authorization. The election process should proceed as outlined in the association’s bylaws. This includes adequate notice prior to the board elections, the date of the elections, quorum requirements, and candidate requirements.

5. The Right to Protest

Condo owners have a right to expect that their board will perform their fiduciary duties to the association. If not, you have the right to remove board members who abuse their authority or are unable to fulfill their duties. Condo owners also have the right to protest rules and regulations that are unfair, discriminatory, or onerous.

6. The Right to Disciplinary Hearings and Arbitration

As a condo owner, you have the right to a disciplinary hearing before a violation fine or punishment is imposed. Condo owners can appeal the violation or explain their situation during the disciplinary hearing. Meanwhile, if a condo owner is in conflict with the board or another owner, he or she also has the right to arbitration or mediation to resolve the dispute.

7. File Legal Action Against the Association

Condo owners have the right to take legal action against the association or other condo owners. They can file for damages or injunctive relief on board members or owners who fail to comply with the governing documents and condo laws.

Legal Rights for Condo Owners: Fighting For Your Rights

Going against your association can be scary, especially since the board has the power to impose fines and other punishments. However, it’s important to fight for your legal rights as a condo owner. If you see that something is not right, speak your mind. In turn, though, condo owners must also fulfill their duties to the association. When both condo owners and board members work together, the entire condo community can live peacefully and harmoniously.

If you want more transparency for your condo association management, feel free to contact the Condo Manager team today! Call us at (800) 626-1267, email us at sales@condomanagerusa.com, or contact us online to learn more about our HOA software solutions.

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HOA Candidate Nomination: What’s The Process?

admin on October 16, 2013

Behind every homeowners association is a set of board members, collectively known as the HOA board, running it. These board members are elected into position by the association’s members. With every board election, though, comes HOA candidate nomination.

Determining the HOA Candidate Nomination Procedure

It is important to know that every homeowners association may have different guidelines when it comes to the nomination process. State laws and an association’s governing documents usually dictate how candidate nominations should go. Thus, it is best to refer to your HOA bylaws to learn the exact details of your association’s election rules.

Typically, the nomination procedure will lay down how members can nominate candidates, what qualifications are needed in a candidate, and the general steps that the association must follow. The HOA board will normally start with a call for candidates. This is to invite members to send in their nominations through an HOA board nomination form. The board will also need to send a general notice to all members containing the nomination procedure as well as the deadline for nomination submissions.

Some associations might require candidates to write a letter of intent to run for the HOA board, while others may not. This letter simply confirms a candidate’s interest in running for the position. In most cases, candidates will also need to submit an HOA board of directors candidate statement. This statement consists of the HOA board candidate bio and how the candidate believes they can contribute to the community.

If you need board candidate statement examples, here is one:

Download Your Sample HOA Board Candidate Statement Here

Candidate Qualifications

Who is qualified to run for the HOA board? It depends on the association. Your HOA bylaws should have explicit qualifications for candidacy. Generally, though, for candidates to qualify, they must first be a member of the association. This means the candidate must own a separate interest within the HOA at the time they are nominated. This is a mandatory qualification.

Another common qualification is that the candidate must be current on all payments, including dues, assessments, and applicable fines. If an association places such a qualification on a nominee, though, it should also expect as much from current board members. That means no existing board members should be behind on payments.

Some states, such as California, go into further detail about what kind of qualifications are allowed. For instance, a nominee may be behind on payments but has enrolled in a payment plan with the association. In this case, the board may not disqualify the candidate from running.

Apart from qualifications, associations may also have grounds to disqualify candidates. California law, for instance, allows associations to disqualify a member from running if, when elected, that member would be serving with another board member who owns the same separate interest. The same law allows disqualifications if the candidate has only been a member for less than one year or if the candidate has a past criminal conviction. You may also disqualify a member if they miss the deadline for nomination submissions.

If your association intends to disqualify a member for whatever reason, though, you must allow the member to engage in an Internal Dispute Resolution with the HOA. Associations may not disqualify members without conducting this first.

Methods for HOA Nomination of Candidates

There are a handful of ways members can nominate candidates for the HOA board election, namely self-nomination, floor nomination, and write-in candidates.

Again, the specific methods for HOA candidate nomination should be written in your governing documents. This includes whether or not your association allows certain nomination procedures, such as write-ins and floor nominations.

Self-Nomination

Many associations allow members to nominate themselves to run for a position on the board. Although an HOA may disqualify a member from running with justifiable cause, it may not take away a member’s right to self-nominate.

If you intend to nominate yourself, you must answer the board’s call for candidates. Usually, this means submitting an application form or a letter of interest to the board prior to the deadline. Your HOA may have a specific format for such a form or letter, so it is best to check with your board first. Some boards will include a copy of the application form or letter with the general notice, while others have it up on their HOA website for easy access.

Here is a sample letter of interest for an HOA board position:

Download Your Sample Letter of Interest for HOA Board Position Here

Floor Nomination

Floor nominations are typically not required of homeowners associations unless its governing documents say so. The procedure for floor nominations is simple. After the association meets a quorum, the board president will open the floor for HOA candidate nominations.

Members may then nominate individuals who meet the candidate qualifications. The validity of the nomination persists even if the board president fails to recognize it. Additionally, members need not second the nomination.

During floor nominations, members can nominate other members or even themselves, though there is a limit on how many nominations each member can make. Moreover, the nominated members also do not need to be present at the meeting. It is worth noting that those who have already sent their ballots through the mail may not vote for floor nominees.

Write-In Candidates

If your association’s governing documents permit write-in candidates, then you must allow members to do so. But, if your governing documents say no such thing, then you can eliminate write-ins altogether. In that case, if members do write candidates in on their ballots, the association or election inspector can disregard the write-in votes. Any other votes that were not written in remain valid.

You may wonder about the verification process for write-in candidates. If your association permits write-ins, then you must consider these write-ins even if no previous nomination took place. Should the write-in candidate accumulate the votes necessary to secure a position on the board, you must then contact the candidate and confirm if they want to accept the nomination.

It is essential to make it clear in your governing documents whether or not to allow write-ins (and even floor nominations). Consider amending your governing documents if ambiguity remains.

Closing Nominations

Either your association’s governing documents or your HOA board will set a deadline for nominations. In the case of floor nominations, the HOA board may close nominations for the duration of ballot preparation and mailing. Once the annual meeting takes place, the board can then reopen floor nominations.

The Final Review

Prior to distributing the ballots, the association must finalize its list of candidates and disseminate it to the candidates. The timing can vary depending on the location or the HOA’s governing documents.

For instance, in California, the association must make this list available at least 30 days before distributing the ballots.

The association must allow its candidates to review this HOA candidate information sheet. For any errors spotted, the inspector of elections must make the necessary changes to correct the inaccurate information. The inspector must make this correction within two business days of any reported errors.

Make Election Season a Breeze

It is imperative for every association to know and practice its HOA candidate nomination procedure properly. This will ensure a smooth nomination and election process, thus, avoiding wasting time and money. Always check your governing documents and state laws for any provisions relating to candidate nominations. When in doubt, consult with an HOA attorney.

Condo Manager can make the election season easier for homeowners associations everywhere. Our software can track homeowner information, print customized ballots, and send notices with the click of a button. Contact us today at (800) 626-1267 to learn more or fill out an online form for a free demo.

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