The REAL life of a board member

I think it is time we get some perspective on what board members are and what they do. Not all BOD members are created equal. Their ONLY requirement to be a board member is to be a HOMEOWNER and VOTED into the position. A HOA is a NON-PROFIT corporation. That means the BOARD is responsible for making sure the budget meets what it is paid in as what is paid out. The end of the year and every year the HOA should have a budget of "0" and a capital improvement account. (this is the "theory")

A board member typically is a HOMEOWNER who wants to be involved in their community. The GENERAL membership then VOTES and elects that person to represent them on daily operations of the HOA on their behalf. Board members are NOT paid and are VOLUNTEERS ONLY. Once elected they then take on the operations of the HOA on the behalf of the general membership and are to run it representing those members desires.

Board members are also responsible for enforcing the restrictions. The way of doing so is in the documentation. They are responsible for collecting funds from those who don't pay. If there are capital improvements to be made, they make sure there is the proper funds to make that happen. Overall READ your documentation for YOUR HOA to see and understand the responsibilities and duties of a HOA board member.

Now this is the FACTS of being a Board member. It is hard written and in your documents. The above statements are not a be all end all definition. It is to give the reality of what board members are and do. Homeowners who volunteer so you don't have to. Unfortunately, they often have to act like politicians to get those positions. How else does one get votes if they don't advertise and run for an office?

Anyone who truly believes their HOA board members are underhanded crooks and rip off their HOA has no clear understanding of the REALITY of being a board member. I can't imagine in a million and one years how to make a "profit" from my or anyone else's HOA. An insurance claim money? Reality - It cost money to pay out for the deductible and hard proof of damage presented. Kick-backs from contractors? That's illegal and punishable by the law. It's not something the HOA should be involved in and reported to the police. A HOA is a VOLUNTEER only. If money was to be paid out, it would be subjected to taxes on the HOA end AND the BOARD member's end. Not much money for that in the end. There is no "HOA industry". If there was, where do you send your resume? Where are the working standards and a phone number for a national hotline? HOA's are ALL INDEPENDENT SEPARATE corporations with not one connected with the other nation or state wide. Insurance is an INDUSTRY. A HOA is NOT.

I am NOT "Pro-HOA" nor am I against HOA's. You make where you live and what you perceive you live, the way you want it. I can't change the facts and reality of the world or HOA's. The rules are written and available for free for public viewing. If you don't like something in your HOA, you can vote the board out or you can get a majority together and change it... It's YOUR own fault and no one else's if you don't take responsibility in your life to get the things you want. No one hands you anything for free or to your liking.

I've got respect for those board members who come here seeking or giving advice here. We ALL learn from eachother and promote the positive and real approach to living and operating a HOA. A resource I wish I had when I was a board member, President, or even a general member. I've learned so much and hope I've helped a bit. Thank you to all those board members who can stand a few slings and arrows thrown at them, still standing tall and standing for the best a HOA can offer...

Yeah I don't go by "Perspective" and "Urban legend". I go by FACT and the WRITTEN word. I find REALITY a much better option when dealing with the world... Crooked views are spread by those who have those thoughts. They try to hide it behind everyone else but the truth is, it is and always has been that person who is the crooked one... It's much easier to live life as if everyone else are "crooked". Plus it's good excuse when they do it because everyone else in their view is...

I make no apologies for having been a Board member. I did the job no one else wanted, volunteered for, or didn't do it cause they would not get paid. Some say BOD positions in a HOA is a "Thankless job"... I say it is a "ThankFULL" job, as I am doing it to be thankful of what I have. You thankless people can just stay home and whine about the world...

NOPE

their job is to run the corporation according to (in order)

1 - common fiduciary judgement

2 - state not-for-profit corporate law

3 - their corporate by-laws

the general membership's wishes come into play via changing the docs if they desire

eg. some of the membership (maybe all in a 55+) take the attitude: i may not be here tomorrow, so why should i pay........?

the corporate directors assume a fiduciary duty sometimes IN SPITE OF membership wishes (see # 2 & 3)

Actually, it’s a combination of the two. The Association has to be run as a business, meaning board members have to use their best judgment in making decisions that will benefit the business. We can’t predict the future of course, but the fiduciary judgment part should mean board members are asking questions (lots of them), debating the issues, asking the homeowners what they think (if they don’t like a proposal, they can always come up with an alternative the board could consider), consulting the property manager and various experts – and then making the decision and running with it.

Business decision making sometimes means people may not like what’s about to be done, but in most cases they will understand the thinking behind it if the Board is candid and provides details. I read somewhere that Board members need to think 10 years out, but concentrate on the next five – they don’t have the luxury of only thinking short term because tomorrow has a nasty way of creeping up when one least expects it. Better to be prepared and not need something in the near future than to be caught short handed.

Some (most?) homeowners don’t understand this because they (including board members) are short-sighted. We don’t understand delayed gratification or planning for the future – all we can see is what’s sitting in our laps right now. We don’t understand that life is unpredictable – the 55+ crowd might not understand why they should save now for roofs that will be replaced 25 years from now, forgetting that if they don’t save anything, they’ll have to pay a lot of money if, say, a tornado comes through and rips off those roofs they just replaced last year.

The board members want to be liked and rather than explaining why certain decisions are being made – and challenging homeowners to come up with alternatives – they fold and make short term decisions that aren’t very good. Then when the stuff does hit the fan, everyone screams long and loud about what the previous board did, forgetting THEY were the ones who insisted on the short term thinking because assessments were “too high.”

Melissa,

I do believe I understand why you started this thread. I did notice some minor issues with some of your statements that may need to be clarified. These are:


Actually some Associations do have additional qualifications. One of them I can think of off the top of my head is that they are current in their assessment payments. In reality, based on my on Associations governing documents, some Associations don't have any requirements (we have no requirement that Directors be members). Additionally, not all board members are elected. Some Directors are appointed to the position by the remaining board members or by the Declarant.


From my research, this is true for most Associations but not all Associations. Some Associations do have paid Directors.

Additionally, some Associations actually pay their Officers but not their Directors. Since it's typical that Officers are appoint from amongst the Directors, when Officers are paid, it is certainly possible for someone to perceive that Directors are paid (as it's rare for members to differentiate the two positions).


I've personally have not seen any governing documents that require Associations or Boards to enforce the covenants. The Association has the authority to enforce, members typically have this same authority, but it's the Boards decision to exercise such authority or not.

Mind you, if an Board does choose to exercise enforcement authority, they should apply their enforcement effort equally to all members. Otherwise, if challenged through the courts, they may be found to be selectively enforcing covenants which can cause issues.


Or, to be honest, the Board are actually underhanded crooks. I offer various news headlines for proof. Granted, I don't think it's the case in all Associations but, as the news headlines remind us from time to time, this is the case for some Associations and we should acknowledge that.


I would only add that it won't happen overnight and it will be hard work. However, it can be done.