Did you know that, as of 2021, 74.2 million people in the U.S. live in community associations? Of these individuals, an estimated 634,000 are Utah residents. Many of them live in homeowners associations (HOAs).
HOAs have become more popular due to their amenities, such as community pools and parks. Properties within the community also typically retain, even improve, their values.
Community residents can expect those benefits thanks to their hard-working HOA board.
But what exactly are HOA board responsibilities and duties? How do they help communities and residents?
This guide answers those questions in detail, so read on.
Register With the Utah HOA Registry
The Utah Code § 57-8a requires all HOAs to register with the Utah HOA Registry. Registration is mandatory to ensure all HOAs have accurate and current contact information. The public can also access this information, including prospective and existing community members.
The HOA Board of Directors (BOD) must complete this registration process. They must also ensure it's up-to-date and accurate. Failure to do so can lead to penalties, such as restricting the HOA from pursuing a lien.
Maintain Common Areas
Maintenance and repairs of the community's common areas are also part of an HOA board's duties. These include amenities and structures each resident can access, such as:
- Pool, clubhouse, and fitness or sports center
- Parks, gardens, and landscaping
- Stairways and hallways
- Elevators
- Sidewalks and streets
It's also the role of an HOA board to maintain and repair the systems in these common areas. These include the plumbing, electrical, and HVAC systems used in these facilities.
Managing the Community's Finances
HOAs require a budget to pay for the maintenance and repairs of the common areas. They need the same for HOA insurance, reserves, and contingency funds. Likewise, they must have funds to pay for utilities and services used by the community.
To cover those expenses, each resident must pay HOA dues or fees.
The HOA board's role is to create the community's budget and collect HOA dues. It must also ensure the proper allocation and use of the funds.
Working With Reputable Vendors or Contractors
While all of the above are an HOA board's duties, it's not always the board members who perform them. Instead, they delegate these tasks to reputable, licensed vendors. However, they're responsible for overseeing each contractor's work.
For example, the HOA board may hire licensed plumbing, electrical, and HVAC contractors. They may also contract with professional landscapers, roofers, painters, and accountants.
Alternatively, a board may outsource the HOA's management needs. This often involves partnering with a licensed property management company.
A property management company provides services aligned with most HOA board duties. These include property maintenance, HOA fee collection, budgeting, and accounting, to name some.
Simplifying HOA Board Responsibilities
Despite having unpaid volunteer directors, an HOA board takes on many responsibilities. From ensuring the HOA complies with Utah laws to repairs and upkeep, these are only some of their duties.
Thus, it makes sense for a BOD to rely on a property management company. This lets board members fulfill their responsibilities and duties without getting overwhelmed.
Does your HOA in Orem, Utah, need help managing the community? Then PMI Reliant can help! Contact us now to speak with one of our property management experts.
