One way to ensure accountability in a community is to evaluate HOA board members. An HOA board makes decisions that affect the entire association. Evaluating the board’s performance ona regular basis will help owners spot issues early and take the necessary steps to correct them.
Should Homeowners Evaluate HOA Board Members?
Every homeowners association relies on a set of directors known as the HOA board. This board is responsible for running the community, completing tasks such as dues collection, rule enforcement, and maintenance.
Trust in the board is crucial to a harmonious environment. Still, that does not mean the board is free from criticism. It is important to establish internal controls that promote transparency and accountability. One way to do this is to schedule a regular HOA board evaluation.
State laws are typically silent on the subject of evaluating board performance. Some governing documents may stipulate it, but many others do not. That said, associations would do well to conduct assessments every once in a while. Doing so would keep the board in check, identify areas for improvement, and maintain resident satisfaction.
How to Evaluate HOA Board Members
There are three main ways to conduct a board evaluation: internal self-assessments, resident surveys, and a professionally performed audit.
HOA Board Self-Assessment
As the name suggests, this type of evaluation involves board members reviewing their own performance. To conduct this, the board must answer key questions:
- Does the board follow the governing documents and applicable state laws?
- Are roles and responsibilities clearly understood by each board member?
- Does the board act in the best interest of the entire community?
- Are major decisions documented in meeting minutes?
- Does the board explain decisions to homeowners in a clear and timely manner?
- Are meetings properly noticed and open when required?
- Is the budget realistic and reviewed regularly?
- Are reserve funds funded according to the reserve study?
- Does the board monitor delinquencies and control expenses responsibly?
- Does the board respond to homeowner questions within a reasonable time?
- Are rules enforced evenly without favoritism?
- Does the board follow established violation procedures?
- Are common areas maintained on a consistent schedule?
- Does the board plan for long-term repairs and replacements?
- Are conflicts of interest disclosed and handled properly?
- Do board members avoid using their positions for personal benefit?
Board members must recognize that there is always an opportunity for development. Pursuing ongoing education and attending training sessions are good strategies to improve governance and decision-making.
Resident Surveys
The HOA board can’t simply rely on internal evaluations. To gain a more objective view of their performance, board members must conduct resident surveys as well.
This survey should ask the same questions as above. While verbal surveys work fine, it is best to distribute written surveys for better documentation. This way, owners can give more thought to their answers.
Of course, residents should not evaluate HOA board members without insight. Personal issues should never be used as a basis for response. Instead, residents should get involved in the community to get a better understanding of how the board works.
Residents must attend meetings to observe discussions and decisions firsthand. They should review financial documents, meeting minutes, and reserve studies. Don’t be afraid to ask questions and voice concerns as needed.
Professional Audit
For a more thorough assessment of the board’s performance, a professional audit is recommended. An auditor will evaluate the association’s finances and documents, including CC&Rs, minutes, reserves, and everything in between.
An audit will help identify any gaps in operations and decision-making. It will uncover any discrepancies, conflicts of interest, problematic actions, and the like.
Key Areas to Evaluate HOA Board Members
When conducting evaluations, it is important to look at key aspects of community management and governance. Leave any personal biases or vendettas at the door. Instead, review the board in an objective manner.
1. Financial Management and Transparency
Homeowners should check how the board manages the association’s finances. Are the budgets accurate? Does the board comply with accounting and legal requirements?
It is also essential to check financial statements and practices. Verify if there are sufficient funds in the reserves. Take a look at delinquency rates, which can say a lot about the association’s cash flow. If there’s a history of frequent special assessments, that’s a red flag.
2. Governance and Compliance
Another area of concern is governance and compliance. The board should adhere to both state laws and the association’s governing documents. Decisions must also be made transparently and communicated to homeowners.
3. Operations and Maintenance
It is the HOA board’s responsibility to ensure maintenance and repairs. Check if common properties are clean and functional. The board should also manage vendor contracts properly, ensuring that all deliverables are completed on time and in full.
4. Communication
Board members must keep an open line of communication with homeowners. When residents raise concerns, the board should acknowledge and address them accordingly. The board must also keep residents informed of community affairs.
How Often Should Homeowners Evaluate HOA Board Members?
An association’s governing documents should guide the frequency of board assessments. That said, it is a good idea to evaluate HOA board members at least once a year. This way, homeowners can use the events of the year to inform their judgment.
Additionally, board members come and go. To ensure a thorough review of both outgoing and incoming directors, an annual assessment is necessary.
How to Proceed After Poor Evaluation Results
When faced with a poor assessment, some residents may jump to conclusions and immediately seek removal. While this might be the answer in some cases, it is important to exhaust other alternatives first, as removal can disrupt operations.
It starts with a meaningful exchange. Homeowners should let the HOA board know of their dissatisfaction, and, in turn, board members should acknowledge the concern and work on bettering themselves.
If the problem persists, owners can initiate mediation or arbitration, which will bring in a neutral third party to the fold. Residents can also consult legal advice on the proper next steps. That said, lawsuits can be lengthy and expensive, so they must be used as a last resort.
On their part, board members must listen to owner feedback and take evaluations seriously. They must strive for self-improvement by attending workshops or seminars. It is also wise to seek help from veteran board members or the community manager.
For a Better Community
It is necessary to evaluate HOA board members every year. With consistent feedback, boards can understand how homeowners feel about their performance and work on improving their leadership.
Creative Management Company offers association management services to HOAs and condo communities in Greater Houston. Call us today at 713-772-4420 or contact us online to learn more!
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