General Information for a Homeowners Association Board Member
Whether you’re an elected member of the board or a disgruntled homeowner, homeowner’s associations (HOAs) can be a headache to deal with. It’s almost impossible to make everyone happy, and that’s the topic for another article (or book) entirely. Today, however, Silvercreek Association Management is going to explain some common problems homeowners association board members face, and provide you with resources to overcome them.
Common Questions for Homeowners Association Board Members
It can be very difficult to be a board member of an HOA, especially if you have to work a full-time job or are an investor who doesn’t live within the community. While investors/absentee-landlords don’t usually get involved with HOA issues, it can be a wise move sometimes if there are specific issues you can address to increase the value of your investments.
- Notice and Hearing Requirements
Many states, including California, have open meeting statutes that require HOAs to provide a certain level of transparency as to how it conducts its business. Many of these statutes, at the least, require that you give your homeowners adequate notice of the time and place of general meetings, and record the issues addressed during the meeting. There are exceptions for special and emergency meetings, but you should try to give your homeowners as much notice as possible anytime the board meets to discuss official homeowner business.
- Collecting Delinquent HOA Dues
Typically the problems arise when a homeowner becomes seriously delinquent paying their HOA dues, and the board is forced to pursue collection remedies that include placing a lien on the property.
While your association needs to collect dues, including late fees and other charges, it also should try to resolve issues with homeowners who are obviously unable to pay. Instead of imposing excessive fees, try to work out settlement options with homeowners who are going through foreclosure. Not only will the money help offset any problems, even if it is less than you expected, avoiding placing a lien on the property makes it more likely it will sell quickly and you can get a new homeowner who is able to pay the monthly dues.
Often, the procedures for nominating and electing new homeowners association board members to the board are outlined in the bylaws of the community’s HOA agreement. It is imperative that you familiarize yourself with all the specific regulations set forth in the bylaws, as this can open the HOA up to possible legal liability for failing to follow procedure.
Resources for Homeowners Association Board Members
Knowing where to go to learn more about HOAs, State HOA laws and how to make amendments is important. Here is a list of resources that are useful for HOA board members.
Above are just a few common issues investors and board members in HOA communities face. If you have questions about investing in an HOA community, serving as an HOA board member or any other questions about investing in Sacramento real estate, contact Silvercreek Association Management today. We are very familiar with the Sacramento Homeowners Association Board Member concerns, and happy to answer any and all questions.