How to Create an HOA Board Resolution Plan
Within the context of a homeowners association, a resolution is a formal statement created by the board relating to the policies and decisions of the board. It contains information on the purpose of the solution, what action follows, and the board's authority to make that decision. Resolutions validate and support the board's operations.
Three Types of HOA Resolutions
There are three HOA board resolutions — administrative, policy, and special. Learn more about each below:
1 Administrative Board Resolution
Administrative resolutions, also known as procedural resolutions, deal with internal processes. These can take the form of proper procedures for board meetings, elections, architectural change applications, and the like. Of course, the board and the community members must strictly and consistently adhere to these procedures.
2 Policy Board Resolution
Policy resolutions are those that influence the rights and obligations of owners. Boards typically use policy resolutions to clarify vague provisions within the governing documents. Often, the CC&Rs only give a limited amount of information — not enough to support or help the board make a decision, so this is where a policy resolution can come in.
Policy resolutions can come in many forms, such as the appearance of homes in the community, how to use common facilities, pet restrictions, and more. Another term used to describe policy resolutions is interpretive resolutions.
3 Special Board Resolution
Special is the final type of HOA board resolution. Special resolutions are those that deal with an individual situation. Boards use this to add a rule that currently does not exist within the association's operating rules or apply to a particular circumstance. For instance, a board might adopt a special resolution related to a decision concerning a violation.
Creating a Homeowners Association Resolution
Understanding the process of creating your board resolution is imperative to draft clear and consistent answers that coincide with your board's authority and conform to the law.
1 Refer to the Law
The first — and arguably the most important — step is to check federal and state laws, as the law takes precedence above all else, including your governing documents.
You can use resolutions in a court of law, so if you enact a resolution that clashes with the law, it is deemed void and unenforceable. Sometimes, you may even encounter liability due to passing an unlawful resolution.
Before drafting your resolution, check the law for any conflicting provisions. For example, you can't enact a resolution that bans satellites because the FCC's OTARD Rule prevents you from doing that. Find someone on your board who has legal expertise. Alternatively, you can also consult with an HOA attorney.
2 Confirm Authority
After the law, your association's governing documents take precedence. Make sure your documents give your board the authority to make new resolutions. Otherwise, your efforts will be all for naught.
When writing your resolution, don't forget to reference the section of your bylaws or CC&Rs that give your board the power to enact resolutions. This way, no one will question your board's authority.
3 Research Information
The research comes into play when your HOA board discusses the resolution in detail. Make sure to ask specific questions, including but not limited to:
Why are you proposing this new resolution?
How will you enforce the resolution?
What other details should your board address?
It is crucial to get everyone on your board on the same page so that you can move and act as one unit. Ironing things out from the beginning also helps ensure there are no grey areas left unresolved.
4 Draft the Resolution
After settling the details, it is time to write down the resolution. Resolutions are formal statements, so make sure to follow a standard format. It is a good idea to use the form adopted by the previous boards to ensure uniformity.
What should your HOA board resolution include?
The specific section of your bylaws that gives your board the authority to create the resolution
Why you are proposing this resolution
Detailed specifications of the resolution
How does your board plan to enforce the new resolution
5 Obtain Feedback
Resolutions do not generally require a vote from the owners to pass. Instead, it only usually requires a voice from the board. Still, that does not mean your board should do whatever you want without regard to the rest of the community.
After drafting your resolution:
Send a copy to the association's members.
Allow them to read through the resolution and provide feedback, so they know their opinions and concerns matter.
If they have any questions, answer them.
If they feel the resolution consists of vague terms, edit and clarify them.
While you should value and obtain resident feedback, you don't always have to follow them. Remember that your board's fiduciary duty is to make decisions within the community's best interests — not the owners'.
6 Vote on the Resolution
The penultimate step in the resolution process is to vote on the proposed resolution. Board members should follow all the procedures for voting, including providing notice and establishing a quorum.
7 Enforce Consistency
If the resolution passes, it is time to enforce it. Enforcing a resolution is usually a never-ending step, and your board might feel tempted to slack off or become lax, which is a bad idea. You must implement every resolution in a consistent and unbiased manner. Otherwise, owners won't take your resolutions seriously anymore.
Sample for an HOA Board Resolution
Drafting your board resolution is often easier said than done. To help you create your own, use the sample below as your guide.
Better Governance is Right Around the Corner
An HOA board resolution helps formalize and clarify community procedures, internal workings, and individual situations. Given its significance, every board must know how to make resolutions correctly. Of course, not all boards have the time or expertise to deal with the more tedious tasks associated with creating resolutions. Condominium Associates is your HOA management company here to help you with this endeavor! In the meantime, check out HOA Management.com's Free HOA Board Resolution Template.