For any newly-elected Board member, the responsibilities and obligations of the job can be daunting. Taking those responsibilities and obligations seriously is important, not only because it’s the “right thing to do,” but also because doing so is in the best interests of the Association and better ensures an amicable relationship between the Board of Directors and the Association membership.
The members of the Board of Directors of a homeowners association have a great responsibility to the association’s members to govern the association properly and appropriately. The legal obligations of a Board of Directors apply to all Boards, regardless of the size of the community and regardless of whether a community is professionally managed or self-managed. Ignoring those obligations-or even simply being unaware of them-can contribute to discord within a community and, sometimes, a lack of trust in the Board by the homeowners.
Among the obvious important responsibilities such as being familiar with your HOAs Governing Documents, it’s important to Monitor Your Vendors (including your management company).
Some Board members may be under the mistaken impression that, if they have engaged vendors to “take care of everything,” they have shifted the responsibility for ensuring completion of those tasks identified to the vendors. Not true. Most associations’ bylaws include language that says, for example, even though the association may delegate a given officer’s functions to a managing agent, such delegation does not relieve that officer of the ultimate responsibility for the his or her duties. This is most especially true for the duties of the Treasurer. The Board of Directors is ultimately responsible for the actions of its vendors. Granted, there may be legal action that can be taken against a vendor that breaches its contract with the association, but, nonetheless, it is the Board that answers to the association members, and the Board that is responsible for the operations of the association. Choose and monitor your vendors carefully.