HOA communities are becoming more and more popular in the United States. As of 2021, there were about 358,000 communities that had an HOA.
If you are new to this type of community, you may be wondering what HOA duties there are and what people on an HOA board do for that community. This guide will explain three of the most common tasks for HOA board members.
1. Preparing a Budget
One of the biggest tasks that an HOA board has to do is prepare an annual budget. This lets the HOA board know how much money they can spend and what money they anticipate coming into their organization.
Most of the money that your board will collect will be via HOA fees. Essentially, the treasurer has to add up what money they can expect from all of the homeowners in a given year.
Then, the board has to anticipate all of the expenses they might have for the year. This can be difficult to do at first considering that there can very easily be an unforeseen expense arise.
An example could be if a piece of playground equipment in the neighborhood park breaks. In that situation, the HOA may have to take action and get someone to install a piece of new equipment as soon as possible. On top of this, they may have to do more inspections on the other playground equipment to make sure that it is safe.
Then, there is routine maintenance on homes. The recommendation here is to dedicate about one percent of the home's value annually towards this. A good treasurer will include this in the anticipated budget.
2. Holding Meetings
Another thing that an HOA board has to do is hold annual meetings for the community. This lets people know what is going on in their community and it gives other homeowners a chance to ask the board questions and speak to them about any concerns that they have.
This is important for not only transparency but to also let others in the community know that you are with them and you are listening to all of their needs and concerns.
3. Making Decisions
Finally, the HOA board has to be the final authority when it comes to decisions made for the sake of the community. These can be things such as investing in maintenance for common areas, adding a new amenity, hiring another lifeguard for the community pool, and more.
Form Your HOA Board
These are three of the tasks that an HOA board is typically in charge of for their community. The HOA board has to make executive decisions that they feel will benefit the community. Also, they have to hold annual meetings to keep other homeowners in the loop about community news and prepare an annual budget to make sure that they have money for all of this.
Doing these along with other tasks are essential HOA board responsibilities. However, what if you could receive help with all of this?
Reach out to us here to find out more.
