Homeowners Associations: The Basics
How do homeowners associations work? It's an excellent question — and one we have the answers to. As longtime leaders in the Community Management field, we've seen endless examples of HOAs and understand their inner workings better than anyone. After years of professional (and personal) experience, we've found that the best HOAs operate as follows.
First, the Homeowners Choose a Board of Directors
An HOA is democracy in action; each homeowner has a say in the future of their community. When an association comes together, residents elect a Board of Directors for terms of one or more years. Board members make decisions on behalf of the homeowners, delegating jobs to sub-committees when necessary.
To discuss community matters, the Board regularly holds two types of meetings:
Then, the Board of Directors Chooses a Management Group
Many Boards will contract a management group to handle the community's day-to-day affairs. Typical roles include overseeing community funds, facilitating service requests, and upholding the regulations listed in the HOA's governing documents.
In general, the management company supplies four core team members:
Finally, the Board Contracts With Vendors
While management companies offer significant support to the Board of Directors, there are some tasks they can't perform. These duties — such as landscaping and pool maintenance — are delegated to the association's outside vendors who are licensed, bonded, and insured to work on HOAs. While the management company does not perform the work, they still liaise with and provide direction to the Association's contracted vendors.