3 Reasons Why HOA Transparency Matters in Your Community Association
As members of our HOA community, we may sometimes feel that rules and regulations are unfair or fees are too high. Our board may need more support when it comes to governing the HOA. Increasing HOA transparency can help everyone work together and operate more effectively, bringing numerous benefits.
Transparency is key to an efficient organization.
Being open and transparent about what the HOA is doing can lead to a more harmonious community where everyone's voice is heard and valued.
Builds Trust Within the HOA Community
As integral members of the HOA community, homeowners have a right to know what is happening, including where their money is going and when the board must change HOA rules. Keeping the community informed about meetings, decisions, repairs, and budgets not only empowers them to have a more significant input but also allows them to see how the board operates. For example, when reviewing how funds are being delegated, invested, and managed, they can see how the board works on their behalf--this helps the HOA community feel valued and integral to our community's operations.
Reduces Conflict in the HOA Community
Transparency is a powerful tool in reducing conflict and fostering a sense of community. By inviting members to open meetings, distributing minutes, and maintaining up-to-date websites, we create an environment where everyone feels informed and connected. This open communication helps members understand the rules, their necessity, and how they can support them, creating a stronger sense of belonging and involvement, which can lead to a peaceful and harmonious community.
Inspires and Motivates HOA Community Members
Transparency is a catalyst for inspiring and motivating homeowners to get more involved. By knowing what's happening in the neighborhood and the challenges that the HOA is facing, they can seek opportunities to contribute their skills and talents. Whether it's in marketing, event planning, accounting, or any other area, their contributions can benefit the board or a committee. When community members feel heard, they become more than active participants: they become the driving force that can make a real difference in the community.
The HOA protects the integrity of the community and does what is in the best interest of its members. It manages the common areas, enforces community rules, and ensures the community is well-maintained. HOA Boards that are open about decisions, funding, services, and maintenance are essential to foster communication and get everyone involved working well together. By working towards these initiatives, boards can effectively increase the HOA transparency within the community association.
How to Build Transparency in Your HOA
1. Hold Open Board Meetings and Work Sessions
Although boards are generally required to hold open meetings when voting on major decisions, some boards try to avoid conflict and arguments by having closed work sessions where homeowners aren't allowed, which may give you peace in the short term but is likely counterproductive in the long run. Conducting most of your sessions with homeowners in attendance is better so they can feel heard.
Recently, many boards turned to online meeting platforms out of necessity. Some boards experienced the benefits of convenience and broader attendance and have opted to remain online or hold the meeting in a hybrid format with both online and in-person attendance.
2. Share the HOA Meeting Minutes
No matter when you schedule board meetings, some residents cannot attend. Others may only be interested in some issues, like the financial reports, and will only want to sit through some things. Mailing or emailing meeting minutes to all members is an excellent way to share accurate information widely and demonstrate transparency. This method is beneficial if your HOA doesn't have a secure online portal to post financials and minutes. While email should differ from critical discussions and decisions in open board meetings, it can be useful for keeping homeowners informed.
3. Share HOA Financial Information Often
Budget creation and review involves transparency. Boards should know their homeowners' wish list is for their community and ensure they're informed about what the board is doing to maintain buildings and grounds and protect their property values.
An unexpected increase in HOA fees or special assessments may be frustrating to some homeowners. For others, it can challenge their lifestyle or economic security. Sharing financial information with all homeowners as transparently and frequently as possible can make homeowners feel included and allow them to make constructive suggestions.
Having a financial partner who understands your HOA's specific challenges and requirements can be beneficial as you strive for transparency. Look for a community association banking and lending leader who can offer expert service, custom technology, and various banking solutions for HOAs and management companies.