HOA BULLETIN BOARD

HOA BULLETIN BOARD

HAVE YOU EVER HAD QUESTIONS ABOUT YOUR HOA AND WANTED TO UNDERSTAND THE RESPONSIBILITES & ROLES BETWEEN DIRECTORS AND OFFICERS OF THE HOMEOWNERS ASSOCIATION AND THE MANAGEMENT COMPANY?

Homeowner associations are governed by directors and officers acting with the assistance of other people, such as property managers or landlords, who are delegated various responsibilities by the officers and directors. Frequently, members of a homeowner’s association mistake the association’s officers for directors and express confusion about the distinction between directors and officers, thinking that they are one and the same. While it is not unusual for the same person to serve as both an officer and a director, the positions and responsibilities are quite different and are independent of one another.

Directors.

The Board of Directors is the governing body of a homeowner’s association. They are responsible for all direction of the management and the affairs of the Association. Decision making by the board of directors is done through collective action of the directors at regularly scheduled or special, open, and executive session meetings. Directors are persons with requirements deemed by state statutes and the association’s bylaws. The actual number of directors that constitute an association’s board of directors is specified in the association’s Declarations and/or bylaws. To avoid deadlocks in voting, the number of directors is generally an odd number such as 3, 5, 7 or 9. Directors are elected by the association’s members and the members can also take action to remove directors. Directors may also be appointed by action of the board when it is necessary to fill a vacancy on the board caused by a failure of members to elect a sufficient number of directors, or the death, incapacity, or resignation of another director. The qualifications for serving as a director, and the length of their term as a director, are specified in the association’s bylaws. The directors have voting rights that are exercised through board meetings at which a quorum of the directors is present. A quorum is a majority of the association’s required directors. Thus, if an association’s bylaws require a five-person board of directors, a quorum would be three directors. Starting in 2024, All Board members will be required to register with FINCEN as a part of the Corporate Transparency Act. This is not a problem for CCMA customers as our software is integrated with FINCEN and makes the registration process and updates easy to maintain.

Officers.

Within the board of directors, there is a position and role that each member takes as an officer of the board. These positions are the President, Vice President, Treasurer, Secretary, and a Member at Large.

Duties of President:

Preside over board and membership meetings.
Serve as liaison between management and the board of directors.
Interface with association’s attorney and the board of directors.
Serve as general manager and oversee day-to-day operations.
Solicit bids and meet with vendors and service providers.
Co-sign checks with secretary or treasurer.
Serve as ex officio member of committees.

Duties of Vice President:

Vice President should support the President over Board and membership meetings.
They should familiarize themselves with the same documents as the President.
They should be able to perform the same duties as the President.

Duties of Secretary:

Oversee providing notice of board and membership meetings.
Ensure that minutes of meetings are taken and approved.
Verify and/or sign the final approved minutes.
Oversee preparation of membership list.
File necessary documents with the Secretary of State. CCMA does this for you.
Serve as custodian of records and ensure maintenance of records.
Can be a co-signer on checks with President or Treasurer.

Duties of Treasurer:

Oversee the association’s bank accounts.
Maintain association’s financial documents.
Oversee deposits and investments.
Oversee bill payment.
Oversee preparation of budget.
Report on financial transactions to board & membership.
Oversee preparation of reserve study.
Interface with association’s accountant / auditor.
Review and implement safeguards to protect association financial assets.
Oversee preparation of tax returns.
Sign bank cards and co-sign checks with President or Secretary.

Duties Of A Member At Large:

Help meet Board quorum when they meet.
They should familiarize themselves with Board matters.
They should be able to vote on Board matters.
They should be a good support to the Board when they interface with members
They would be a potential Director in the event of a board change.

Management Company

Full-service HOA management companies are comprehensive companies that provide a range of services. They work alongside the board of directors with various duties. They provide assistance to the board and provide support to the communities per the governing documents.

Management of daily operations of HOAs are based on the Direction given from the Board of Directors. The Managing agent may work independently and report things that were accomplished, but the managing agent is not permitted to make decisions that are outside their duties.

Duties of Management Company

Working closely with HOA Board of Directors.
Serve as liaison between Board of Directors and Homeowners.
Monitoring community activities and informing the Board of Directors to help resolve issues and complaints in the community.
Enforcing community policies and rules by the Direction of the Board of Directors.
Billing and collecting dues and assessments.
Accounting and budgeting support
Risk reduction and insurance.
Administrative office duties and reporting
Keeping an open line of communication with residents to help reach out to the Board of Directors.
Complying with federal, state, and local laws
Acting in the best interests of the community to help keep there home values up.

COLORADO LEGISLATIVE UPDATE'S

New laws for Colorado HOAs in 2024 :

HB 24-1337: Limits attorneys' fees an HOA can charge to 50% of assessments or $5,000, whichever is less. Gives homeowners a right of redemption on HOA-foreclosed homes.
HB 24-1383: Common Interest Community Declarations states that the Owner of real property must sign the Declaration. This is mostly for developers as they are creating the new community, but it also may apply to a declaration amendment.
HB 24-1233: Modification to Collections Procedures. Property Manager no longer must post collection notices to the Unit and it amended how many notices are sent and how they are delivered. Only able to back bill the hard cost of the mailing to the Owner.
HB 24-1158: Requires a minimum initial bid amount for an HOA foreclosure sale.
HB 24-1267: Requires metro districts (including HOAs) to adopt written policies on fines, fees, and governing disputes. Prevents foreclosure on liens due to delinquent fees.
HB 24-1007: Occupancy Limits are not allowed based on a familial relationship. No more 2 people per bedroom + 1 is the limit to the occupancy of a dwelling.
HB 24-1051: Revisions to prevent predatory towing - Requires written permission to remove a vehicle, and a time limit has been set when cars may be removed.
HB 24-1091: Fire-Hardened Building Materials - prohibiting HOA's from enforcing restrictions or conditions that prohibit the installation or maintenance of "fire hardened building materials".
HB 24-1098: Cause Required Eviction of Residential Tenant - prohibits Landlords from evicting a tenant without cause for eviction.
HB 24-1152: ADU - Accessory Dwelling Units - HOA's can't prohibit owners of single-family detached homes from constructions ADU's on their lots, but there are conditions and allowable restrictions.
SB 24-005: Water Conservation Through Prohibited Practices - For projects that start after 1/1/2026 and restricts city and county, special districts, metro districts from installing, planting, or allowing any person to install plant or place any nonfunctional turf, artificial turf, or invasive plant species on any property as part of a new or redevelopment project.
SB 24-134: Operation of Home-based Businesses - HOA's cannot ban the operation of a business at a unit by the Owner or a resident with the owner's permission. There are reasonable rules that can be implemented.