Self-Managed HOA Issues

Our small, self-managed HOA in Arizona (30 lots) struggles with having sufficient interest among the homeowners to run the association and the board. Since inception, one board member has volunteered to take care of all administrative duties including invoicing, banking, paying bills, filing taxes, liens, keeping minutes of meetings, etc. That individual recently sold his property and moved, but has continued taking care of HOA business until a replacement can be named. Basically, no one is interested. Annual income is too low to hire a management company.

The idea has been suggested to hire that individual for a small fee to continue providing the services. The question(s) is/are: Is it legal in Arizona for that individual to perform these services including signing checks, filing liens, preparing tax returns and other documents? If not, can you offer any suggestions.

Thanks for your assistance. Again, this subdivision is in Arizona.

Winston,

Even though you can hire someone or some company to perform the day to day tasks, the governing documents and probably you State statutes will still require that the Association have a board of directors who were elected/appointed in the method identified in your governing documents. Therefore, you will still need membership involvement. However, if help is hired, those individuals won't have to deal with every issue.

I would suggest that if you do hire an individual or company that the Board keep control of the finances. Have that person/company collect, track and deposit assessment payments but only allow the Board to issue checks on the account.

I also agree with Larry. It's typically better to hire an independent contractor than an employee.