Issue link: https://hub.associaonline.com/i/1071954
Whether you're a new association board member or a seasoned veteran, it's a good idea to review key terms that you'll see throughout your time serving on your HOA board. 1. Fiduciary The board of directors of a community association has a fiduciary responsibility to act in the best interests of the association. This means you and the board will have an ethical and moral obligation to make decisions for the benefit of everyone in the community, not just for you and your home. 2. Governing Documents This collection of documents includes the declaration, bylaws, operation rules, articles of incorporation, and other materials which govern the operation of the association. These are all critical to a well-run community and establishing clear expectations and guidelines for all residents. 3. Quorum A quorum is the minimum number of owners required to hold a meeting for the association. The exact amount varies, but the critical thing to remember is always to attend your meetings and encourage other owners to do the same. Your participation is needed and can be the key to carrying out essential business for your HOA. 4. Budget The financial plan for an association which estimates income and expenses for a specific period. Whether your finances are in disarray or you're trying to take them from good to great, get familiar with your budget during this year. 5. Reserves The board is required to annually budget and fund a reserve account, which takes care of necessary capital improvements such as parking lot resurfacing, new roofs, and painting. Take Time to Refresh 5 Essential HOA Terms to Know