HOA board of director roles and responsibilities explained

It takes a lot to build a great community: you need committed residents, a dedicated board of directors, and a clear understanding of everybody’s roles and responsibilities. A strong board will offer a complete vision for the community. But its responsibilities go far beyond that. In this article, we delve into the dynamics of high-rise, condo, co-op, or HOA board members, exploring their positions, roles, and the legal aspects associated with their governance.

Please note that in this article, we often mention HOAs, which are the most common residential community association structure across the US and Canada. And yet, these best practices should provide helpful guidance for other community types too, including condominiums, cooperatives, and strata corporations too.
 

Who governs a high-rise, condo, co-op, or HOA?

The governance structure of a residential community typically involves a board of directors, often known by other names such as HOA board members, elected by the homeowners. The board is responsible for making decisions that affect the property's maintenance and residents' well-being. The governing documents, including the bylaws and covenants, conditions, and restrictions (CC&Rs), serve as the foundation for the HOA's authority. Additionally, state laws may outline specific requirements and regulations governing HOAs.
 

Requirements for HOA board members

HOA board members are often required to meet certain eligibility criteria outlined in the community's bylaws. Common requirements include being a current homeowner within the community, being in good standing with the community, and having a commitment to fulfilling the responsibilities of the position. Board members may also need to attend training sessions to better understand their roles and responsibilities.
 

Alignment is key

Before diving into individual roles, it’s important to first understand the value and necessity of strong board alignment. While you don’t need to agree on every decision with your fellow board members, it’s critical that you present a united front. Without board cohesion, decision-making can stall, financial oversight may weaken, and resident satisfaction declines. Having the right people on your high-rise, condo, co-op, or HOA board of directors helps create unity and keeps your community moving in the right direction.

To help maintain unity, board members need to understand the roles and responsibilities of each member of the board — to both the board and the community at large. This understanding can help make the board more effective and cohesive, leading to a more enjoyable community. Your property management company should provide board education and training resources, helping you cultivate the qualities of great board members.

Remember, no board member has more “voting power” than another, regardless of title. While each role carries unique responsibilities, all board members must work together. With that in mind, here’s a breakdown of key board positions for your high-rise, condo, co-op, or HOA.
 

What are the common HOA board positions?

President

The president’s responsibilities include important procedural roles and essential leadership functions. For instance, if dictated by the bylaws, the president may appoint committees and operate as an authority on the rules and documents governing the community or property. During meetings, the president maintains order, proposes questions, calls votes, announces outcomes, and recognizes those about to speak on the floor. The president also calls the meeting to order, announces the agenda, and oversees that everyone adheres to it. As you can see, this takes a unique personality: someone who is conversant in the dynamics of effective board meetings and knowledgeable about many of the specifics of your community.

“The essential part of getting the right people on your board is to utilize each person's skills for each position. Look at their skills, history, and background,” recommends Bobby Knuth, senior regional director at FirstService Residential. Knuth says that people with experience running businesses of any size can also come to the board with skills that will make it operate more smoothly.

“More will be accomplished if the president handles the property as a business rather than a social circle, focusing on community goals. They understand the need to accomplish tasks but also be fair and amicable in their dealings,” Knuth explains. “People who see the board and the community as their social circle tend to run long meetings that are not efficient and don’t accomplish much. It’s important to remember that many large residential communities are multi-million-dollar businesses, not social clubs.”

To learn more about the role of a board president, read our article “What does an HOA president do?”
 

Vice President

The vice president shares many of the president’s responsibilities and serves in a leadership capacity when the president is absent. This individual is tasked with helping to maintain order during parliamentary procedures, keeping the flow of business moving efficiently, and acting as a knowledgeable source when it comes to the community's rules. Many smaller communities choose not to have a vice president as part of the structure; if that’s the case, everyone on the board should be aware of who will step up if the president is unavailable for a meeting.
 

Secretary

Think of this person as the team's historian. The secretary’s role is to record the board's actions so they can be referenced later. This provides clarity and gives the board a reference point for when and how decisions were made. Imagine how often you’ve had a conversation with another party only to find two different interpretations of the outcome after the fact. Now multiply that by every resident, and you understand how important good records are. The secretary’s functions eliminate those “Oh, I thought you meant...” scenarios by keeping accurate meeting minutes and acting as the custodian of all records. The secretary will also sign the minutes of all meetings and other important community documents.

How those minutes are taken can vary from board to board. Sometimes, an onsite staff member will take the minutes, and the secretary approves and signs. Other boards prefer that the secretary take the minutes during the meeting. The minutes should be simple, clear, and accurate regardless of who is doing the job. The meeting minutes should be a summary of the motions made and actions taken, not a word-for-word transcript of the meeting.

To learn more about the role of a board secretary, read our article “What does an HOA secretary do?”
 

Treasurer

Your budget primarily dictates the effectiveness of your board. This makes the treasurer’s role essential. They will be the keeper of financial records, seeing they are both accurate and thorough. The treasurer will apprise the board of the property’s financial health through regular reports of income and expenses and will also produce an annual financial report to all members. Look to the treasurer to submit financial records in the case of an audit and authorize any disbursement of funds. The treasurer is also the primary check signer for community payables.

It’s very important that the treasurer be someone with the background and experience to interpret a financial statement and convey the information in it with confidence. Your management company should also be a primary resource for your board when dealing with financials. FirstService Residential provides board members with budget resources and training as well as a robust accounting team that board members can turn to for complex budget questions.

In a practical, hands-on sense, the board is tasked with protecting and preserving the property’s assets, minimizing financial risks, maintaining the community’s property values, and enhancing the living experience for all residents. These mandates include everything from establishing policy and creating a budget to preventative maintenance.

To learn more about the role of a board treasurer, read our article “What does a board treasurer do?”
 

What role does our community manager play?

While not an HOA board member, your community manager or a building's general manager plays a critical role in carrying out board decisions, acting as a liaison between the board and residents, providing guidance, and handling day-to-day operations. This means that your manager should have the knowledge and expertise to exceed expectations for your community and board, along with the resources and support of a reputable property management company.

“The manager’s role can fluctuate, depending on the strength of the board members,” Knuth said. “If board leadership is uncertain or inexperienced, the manager should step in to help run meetings if necessary. The manager must be able to fill any gaps the board may have and complement its strengths.”
 

Do you have what it takes to serve on your high-rise, condo, co-op, or HOA board of directors?

Board structures can vary, but specific officer roles are universal and necessary. Having the wrong people leading your board can result in a stagnant board that can’t accomplish its goals, creating community division and strife.  To build a solid foundation for your community board, no matter where you live, make sure that the best possible people fill these roles at your meetings.

To learn how a professional management company like FirstService Residential can support your community, contact a member of our team.