3 Ways An HOA Board Might Mistakenly Place The Community At Risk
Most HOA boards are competent enough to keep their communities functioning, even during difficult times. However, a few of them make mistakes that can have a devastating impact on the community if they don’t resolve them quickly.
Have you took the time to look at the CC&R’s of your HOA? Every board should review them occasionally to make sure the association and members are meeting their insurance obligations. The rules governing an HOA’s insurance are clear so complying with them shouldn’t present a challenge. For instance, the association should maintain the minimum for insurance to ensure owners don’t carry individual coverage.
Maintenance and improvements are a much greater problem than most people realize. This is the result of some HOA’s always looking to save money as a number of them have adopted the mentality of don’t fix it if it isn’t broke. They don’t realize that failing to maintain the community assets can result in costly repairs down the line.
The same can be said about improvements. A better plan is to save for upgrades now as opposed to waiting for an emergency that forces your hand at a time when the community lacks the necessary funds.
On average, the homeowner association website spends a lot of time promoting the activities of the community which is healthy. Yet, some HOA boards spend too much time looking inward and they never recognize they have the power to influence local politics and regulations. By ignoring elections, they rob their community of an opportunity to fight for their own good.
An HOA board doesn’t make these mistakes intentionally. But errors such as these might have lasting consequences, which is why they are encouraged to find other personnel that can guide them so they avoid putting the community at risk!