If you're considering moving into an HOA community, you probably want to learn more about how it's managed. You must have come across the terms "HOA board" and "association management company."
Both play an important role in the management of HOA communities. However, while all HOA communities have an HOA board, not all HOAs enjoy the services of an association management company. Effectively, an HOA board is the entity that's entrusted with the important role of managing a community.
So, what are the primary responsibilities of the board?
Maintain/Enhance Living Standards in the Community
One of the biggest benefits of living in an HOA is the appealing lifestyle. Residents have access to a wide range of amenities, including clubhouses, swimming pools, fitness centers, and even parks. Being a gated community, security is great.
These living standards need to be maintained. This is achieved by ensuring communal facilities are well taken care of, and that vendors who provide services such as security, cleaning, and landscaping are doing a good job.
It's the responsibility of an HOA board to maintain and even improve these standards. They do this by developing a maintenance schedule and hiring competent contractors to do the job.
The board also assesses the changing needs of the community and provides leadership on how to ensure the right improvements are made to cater to these needs. For example, the board can hold HOA meetings to discuss with residents the need to develop a new fitness center if the current one is not adequate.
Handling HOA Finances
A mandatory requirement of being an HOA homeowner is paying HOA fees. It's billed monthly, but nothing stops you from making quarterly or annual payments.
Depending on the size of the community, the fee collections can run into millions of dollars. Nationally, the average HOA fee is $170 a month. So, if a community has 2,000 households, the HOA collects over $4 million every year.
In whose hands do these funds fall? The HOA board!
Your board is responsible for billing, collecting, and budgeting for these funds. It's from this kitty that the community pays for asset maintenance and repairs, as well as vendor services.
An HOA board must exercise diligence when putting these funds to use, ensuring the community is getting the best value for its money.
Enforcing HOA CC&Rs
Every HOA has covenants, codes, and restrictions that every resident must abide by. The board has a duty to enforce these CC&Rs accordingly.
For example, if vacation rentals are not allowed in the HOA community, the board ensures no property is used for that purpose. If a property owner violates the code, the board enforces the necessary disciplinary measures as outlined in the CC&Rs.
HOA Boards Can Make or Break HOA Communities
Given the important responsibilities HOA boards have, it's fair to say the success of an HOA community rests on the competence of its board. However, most boards elect to outsource association management to a professional property management firm.
In Spring Branch, Texas, PMI Bluebonnet Reality is the premier association management company. We don't take a one-size-fits-all approach to HOA management. We'll adapt our services to meet the needs of your HOA community.
Ring us and let's chat about how we can serve your community.
