Who runs an HOA?

There are 3 groups of people that generally have controlling authority in the operation of an HOA:

  1. The Property Owners (generally referred to as “Members”)
  2. The Board of Directors (also referred to the “Executive Board”)
  3. The Officers of the Association (President, Vice-President, Secretary, Treasurer)

The Property Owners/Members elect Directors, the group of people that makes up the Board of Directors/Executive Board.  Despite what many people believe, Owners do have some power- they elect the Directors.

The Directors/Executive Board is the group of people tasked with enforcing the Covenants.  They are elected  by the Members to the board and volunteer their time. Generally, the Executive Board  may adopt rules relating to the operation of the Association provided the rules are not in conflict with the Association’s Covenants.   For example, the Executive Board may adopt Architectural Guidelines but, in such a case, they would not be permitted to create an Architectural Rule that required homes to be a minimum of 3,000 square feet if the Covenants expressly allowed homes to be constructed that were at least 2,500 square feet. HOA boards  are empowered to enforce rules are followed, manage the funds collected through HOA fees (Assessments), make provisions for the maintenance of common areas and have other responsibilities intended to keep these communities running smoothly.  Boards are typically made up of a president, secretary, treasurer and other members. Community bylaws establish how board members are elected or removed from the board, what powers and duties board members have, how long their terms are in office and other aspects of their services. 

The Officers are generally appointed by the Board. The individual officers have very little discretionary power. For example, an Association President would not have the authority to impose fines on an owner.     

While many HOA’s hire a management company to assist with the operational functions of the Association, the management company has little power to anything outside of what actions the Executive Board directs. The management company is not the Association.

what about the management company?

Management companies providing service to HOA’s are not in charge. They serve at the direction and are subject to the control of the HOA’s Executive Board.  

Disputes and legal conflicts often arise because somebody overstepped their authority.

There are limits to what an HOA can do to enforce Rules and Covenants.   If you are faced with unreasonable, inappropriate or abusive threats or demands, you may very well have recourse.   Select the link to find out how to schedule a consultation.