The Role of the Board of Directors

A homeowners association is the cornerstone of a planned community. When run properly, it brings continuity, preserves architectural integrity, maintains common areas, protects property values, and promotes the concept of "community." Every association should be responsible for its assets and operation following state laws and the community's governing documents.

A Strong Board of Directors

To be effective, an association should have a strong board of directors whose members know the responsibilities of their volunteer positions. Directors need to govern uniformly and fairly and clearly understand the association's strengths and weaknesses, history, and accomplishing needs. The board's authority includes all of the powers and duties contained in state statutes, as long as these are consistent with the provisions of the governing documents.

An Overview to Assist with Onboarding Board Members

The board of directors has a fiduciary obligation to the association and its residents. It requires board members to govern in the community's best interests by acting in good faith, exercising due diligence, establishing trust, and working within the scope of their authority.

When a member accepts a position on the board, he or she should learn about the duties and responsibilities of their role. Do not excuse board members from improper action on the grounds of ignorance or inexperience. The board member could open up the association to potential liability due to negligence and mismanagement if you do.

Operating a homeowners association carries many of the same duties and responsibilities as overseeing any other business. Serving as a board member is a valuable and rewarding experience undertaken by those who see it as an opportunity to serve their neighbors while protecting and enhancing the community.

This overview can be handy for community managers helping onboard newly elected, first-time board members.

PRESIDENT

The president is in charge of the day-to-day administration of the association and serves as the board's spokesperson in most matters related to association business. Typically, he or she will preside over all meetings of the board and residents. The president will execute contracts, orders, and other documents on the association's behalf. When signing documents, the president should indicate the capacity he or she is signing to avoid any personal liability since, under most circumstances, their signature will bind the association under a doctrine of inherent powers.

VICE PRESIDENT

The vice president is vested with all the powers required to perform the duties of the association president. The vice president does not automatically possess inherent powers to act in the capacity of the president and may only do so when he or she is absent or otherwise unable to act.

SECRETARY

The secretary is responsible for keeping and maintaining a record of all meetings. In many cases, the secretary is responsible for finding an assistant secretary to record the sessions. As the person in charge of the minutes and other official association records, the secretary ensures that all board members and residents access these documents.

TREASURER

The treasurer oversees the funds, securities, and financial records of the association. Suppose the association has a community manager or management company that handles the funds daily. In that case, the treasurer's duties will include ensuring that the financial records and reports are properly kept and maintained. Unless otherwise stated by the governing documents, the treasurer is responsible for coordinating the development of the proposed annual budget and preparing and providing the association's annual financial report.

Contact Us

Condominium Associates is here to provide the best quality in property management services. Please give us a call today to learn more about the role of the board of directors!