Why It's Important for HOA Boards to Review Things Annually

Why It's Important for HOA Boards to Review Things Annually


Whether you live in a small-scale housing arrangement or a high-rise condominium, being a member of a Homeowners Association (HOA) has its benefits. An HOA is usually tasked with overseeing the communal maintenance of a neighborhood. It can either act as an advocate for homeowners or a regulatory body enforcing guidelines and restrictions. But a well-run HOA also needs constant monitoring and review, and that's because it's all too easy for things to slip through the cracks because of the community's size and otherwise. So, here are some of the areas your HOA board should review every year.

 

1. Budget and Finances

Your HOA Board should review the budget and finances annually to ensure the association's sustainability and make sure it can meet its obligations and responsibilities. Reviewing the budget helps identify areas where management has been overspending, possible opportunities to save, and investment opportunities to keep the community thriving. It also allows the HOA board to identify potential cost-cutting measures or additional revenue streams to take advantage of to increase the community's cash flow.

2. Landscaping and Community Maintenance

An HOA board serves many important functions, one of which is to oversee the upkeep of the community's landscaping and maintenance. As a homeowners association, it's the members' responsibility to create an atmosphere of safety and visually appealing landscape that upholds the respected community's values. They should, therefore, take a proactive approach, ensuring the community stays aesthetically pleasing, promoting a deep sense of pride and ownership among residents.

3. Common Area and Facilities

The review should include any shared spaces like the community pool, gym, and clubhouse. Regular inspection can reveal any issue early, making them easier to mend and preventing any damage from becoming more severe. The association is also responsible for ensuring that these amenities are equipped with adequate safety measures and people’s courtesy to use them as intended, meanwhile avoiding any unnecessary safety issues or liability in case of misuse.

4. CC&Rs and Bylaws

The Covenants, Conditions, and Restrictions (CC&Rs) and Bylaws determine the rules and regulations governing the homeowners association. Anything that might limit or restrict the association's powers or actions needs to be reviewed and possibly amended to empower the community's effectiveness. Periodic review can also identify any changes made that have not been emphasized enough and need bettering to ensure uniformity. During the review, it's vital to ensure that there is clear transparency with planned changes and that all residents are informed to prevent any confusion.

5. Communication

Ineffective communication can do more harm than good as it can lead to misunderstanding, conflict, and gossip. For this reason, effective and transparent communication is key to a flourishing homeowners' community. By reviewing your communication plan, you can assess whether it meets the modern-day standard and offers choices to satisfy everyone's needs. Analyze how you communicate with residents and assess whether they receive enough information and how you can improve your communication channels.

 

Conclusion

In summary, being part of a homeowners association comes with numerous benefits. However, reviewing significant areas annually is just as important to keep the association thriving effectively. Your HOA board should focus on the budget and finances, landscaping and maintenance, common areas and facilities, CC&Rs and Bylaws, and communication for a proactive approach that promotes a sense of community and homeownership pride. Partnering with a leading communication software company like Community Connect System can help manage, streamline and organize communication and tasks within the HOA board more effectively. That way, the community can motivate and attract members while promoting the organization's and community's core values.  If you're looking for a community communication software, contact Community Connect System today for more information.

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