Association Board vs. Management Company Responsibilities
Association boards and management company professionals each have distinct authority, roles and responsibilities. A community association (“HOA”) board, made up of volunteer members, has an obligation to act in the best interest of the association. HOA boards may elect to hire professionals, such as a management company, to aid in fulfilling portions of their administrative responsibilities. Ultimately, the direction and decisions of the community association are at the board’s discretion.
A board’s authority is defined by applicable local, state and federal laws, as well as an association’s unique governing documents. This authority covers daily operations and long-term strategy for maintaining and increasing the physical and financial health of an association.
A community association (HOA) board has a responsibility to use sound business judgment and act:
- In good faith
- With due care
- Without any direct conflicts of interest
- With loyalty to the association, evidenced by acting in its best interest
Given the volunteer nature of community association board members, there may be time and skill limitations to consider. While board authority can never be delegated, board members can choose to enlist the help of experts, including professional community management. If your association is considering management services, we’d be happy to provide a custom proposal on how we can help.
Our management company operations act at the association board’s discretion and authority to execute functions, assist homeowners and provide knowledgeable guidance and resources to the community association. The board remains responsible for oversight and possesses all decision-making authority. The management company carries out these decisions.
Check out our Association Essentials Series (AES) for more information on association board and management company responsibilities.