Community Governance 

COMMUNITY ASSOCIATION GOVERNANCE GUIDELINES, HOW DOES YOUR CONDO REGIME OR HOA STACK UP?

This article has been reprinted with permission from Community Associations Institute. CAI is the world’s leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in community associations, condominiums, and co-ops. Visit  www.caionline.org and follow CAI on Twitter and Facebook @CAISocial. 

Governing fairly, responsibly and successfully should be the guiding principles for community association boards. How? Embrace the following guidelines. They’ll help your association board increase harmony, reduce conflict, and build a stronger, more prosperous community.

​

In accordance with community governing documents and applicable laws and regulations, boards should

​

• CONDUCT REGULAR MEETINGS:  Hold at least 1 membership meeting annually and regular board meetings as needed. Provide homeowners with appropriate notice and encourage involvement.

• CONDUCT ELECTIONS: Hold fair and open elections that provide all candidates an equal opportunity to express their views. Associations should allow a representative from each candidate to observe the vote counting process.

• SET AN OPERATING BUDGET: Determine expenses for: maintaining community common areas, facilities, equipment, and amenities. Hiring professional partners.  Insuring the common assets.

• PLAN FOR AND FUND RESERVES: Commission a reserve study when professional expertise is warranted and plan for  anticipated long term expenditures as part of the annual budget development process.

• COLLECT ASSESSMENTS: Levy and collect assessments and other fees from homeowners in a timely and equitable manner.

• FULFILL FIDUCIARY DUTY: Act within the boards authority. Exercise due care. Act in good faith, and act with ordinary care in the best interests of the association.

• GOVERN WITH TRANSPARENCY: Share critical information and rationale with residents about budgets, reserve funding, special assessments, and other issues that impact their financial obligations to the association. Give residents an opportunity to ask questions and engage in the dialogue on these matters.

• PROVIDE ACCESS TO RECORDS: Allow homeowners reasonable access to the appropriate community records, including annual budgets and board meeting minutes.

• DISCLOSE CONFLICTS OF INTEREST: Reveal all personal and financial conflicts before assuming a board position, once on the board, and before participating in board decisions.

• COMMUNCIATE AND ENFORCE RULES: Ensure rules are readily available to all residents and owners. Uniformly enforce all rules, including architectural guidelines. Request input from residents when developing  new rules, and communicate rules effectively.

• ESTABLISH AND ADHERE TO AN APPEALS PROCESS. Allow all residents an opportunity to correct violations before imposing fines or other sanctions. The board, or a board appointed committee should adhere to standard procedures for resolving disputes.

• FORCLOSE ONLY WHEN NECESSARY: Initiate lien and foreclosure proceedings only as a last step in a well-defined debt collection procedures, and only after other less-disruptive measures have failed to resolve a serious delinquency.

• COMMUNICATE: Provide regular communication (emails, flyers, newsletters, website, etc) with residents to report substantiative actions taken by the board.

• KNOW AND FOLLOW THE LAW: Govern the community in accordance with all applicable laws and regulations. Engage legal counsel as appropriate. Regularly review governing documents to ensure legal compliance, and to determine whether amendments are necessary.

• CONTINUE LEARNING: Commit to staying informed of trends related to community associations and board governance.

• UNDERSTAND AND COMMUNICATE RIGHTS AND RESPONSIBILITIES. Ensure homeowners, residents, and association leaders recognize and accept their roles in the community. Strike a reasonable, logical balance between the preferences of the individuals and the best interests of the community, as a whole.

• LEAD BY EXAMPLE AND MAKE A PLEDGE FOR CIVILITY. Commit to fostering open discussions and debate, and mutual respect and tolerance between all who live in, work in, and visit your community,

•  

Note: Community association boards should consult with the appropriate professionals  to ensure their association is governed in accordance with applicable governing documents and laws. Some governing documents and laws may required adherence to the above principles or principles like them