The HOA board is the linchpin of any association. It is responsible for maintaining the community and keeping operations going. Yet, many still don’t know the exact responsibilities of this group of volunteers. In condominiums, board members have similar duties, but often with added obligations.
What is an HOA Board?
In a homeowners association, the board is the governing body that consists of volunteers elected by their fellow members. The HOA board of directors typically consists of 3 to 7 members, with the exact count depending on the bylaws. It is best practice to have an odd number of directors to avoid tie votes.
HOA Board vs Condo Board
Condominiums and HOAs are both led by a group of board members. In a condo, this group is referred to as the condo board. While their responsibilities are similar to those of an HOA board, condo boards often deal with more complex tasks and obligations.
This is primarily due to the structure of a condo association. In a condo building, owners are only responsible for the interiors of their units, leaving the bulk of maintenance and utility management to the board. Condominiums also have more shared elements, so insurance requirements, reserve planning, and building safety tend to be more complicated.
Condo Board Member Duties vs HOA Board Member Duties
Here are the ways the HOA board of directors responsibilities differ from those of a condo board.
1. Governing Laws
Associations in Illinois follow a set of statutes depending on the type of community they are. Condominiums adhere to the Illinois Condominium Property Act, while HOAs adhere to the Illinois Common Interest Community Association Act. Both HOAs and condos must also abide by their governing documents.
2. Maintenance Responsibilities
When it comes to maintenance, condo board responsibilities include structural repairs, exterior building maintenance, plumbing, and shared amenities. Individual unit owners are usually only responsible for what’s inside their four walls.
Meanwhile, an HOA board manages community-wide amenities and common areas. These include shared landscaping, pools, and clubhouses. Individual homeowners are responsible for maintaining their own lots or properties.
3. Dues and Fees
Dues collection is one of the key HOA board member responsibilities. These dues cover all the expenses related to the common areas and the general association.
On the other hand, condo dues tend to be higher because they cover more expenses. Maintenance costs are usually higher, and insurance policies fetch larger premiums. Plus, in a condo, utilities can also account for a huge chunk of the budget.
4. Budgeting
Both HOA and condo boards must plan and monitor their association’s budgets. Yet, in an HOA, budgets are often simpler because they focus on fewer things. Condo budgets are more complex because they involve building systems, staffing, and utilities.
5. Insurance Responsibilities
An HOA board typically insures the common areas and amenities of the association. Homeowners must carry their own insurance for individual homes and personal property.
In contrast, a condo board must obtain master policies that cover the building’s structure as well as the common elements. Unit owners, on the other hand, must insure the interior finishes, belongings, and liability inside their units.
6. Rule Enforcement
Boards are in charge of enforcing the rules. In an HOA, rules are more often related to exterior appearance, landscaping, parking, noise, pets, and property use. Violations usually involve homes, yards, and visible modifications.
Meanwhile, in a condo, rules have more to do with shared living conditions. This includes noise, hallway use, balconies, smoking, move-ins, elevators, pets, and common area behavior.
7. Architectural Control
Architectural guidelines are generally stricter in an HOA, with inspections and enforcement being more detailed for the board. The HOA board also has broader authority over exterior home changes. This is because these neighborhoods have individual or detached properties, so there’s more room for modifications.
In comparison, a condominium doesn’t offer a lot of space for exterior changes. Because of this, architectural controls in a condo often focus on changes that affect neighboring units or shared structures. Interior renovations may also require approval if they will impact plumbing, electrical systems, or structural walls.
8. Reserve Funding
The HOA board plans the reserves for amenities, sidewalks, and other major components. Because there’s not a lot that falls under the HOA’s jurisdiction, reserve obligations tend to be lighter.
That said, in a condo association, reserves are more comprehensive. Condo boards must maintain larger reserve funds because buildings require more expensive long-term repairs. These include roofs, elevators, facades, plumbing systems, and parking structures.
9. Utility Management
In an HOA, the board doesn’t have to worry about individual utilities. Homeowners are responsible for that. The HOA board only manages the utilities for common areas, such as sidewalk lighting or irrigation for communal gardens.
In condominiums, on the other hand, utilities cover shared water, sewer, trash, heating, cooling, or electrical systems. It ultimately depends on the building setup.
10. Vendor Oversight
Association boards can’t do everything alone. They must hire vendors to perform certain tasks and work that fall outside of the board’s expertise.
An HOA board works with landscapers, pool companies, security providers, and maintenance vendors for common areas. Meanwhile, a condo board oversees a wider range of vendors. In addition to the vendors an HOA board works with, condo boards must also coordinate with building engineers, janitorial services, elevator contractors, fire safety inspectors, and plumbers.
11. Building Safety and Compliance
In an HOA, the board is only responsible for ensuring compliance with safety codes for common areas and amenities. These include clubhouses, playgrounds, and fitness centers.
Condo boards, on the other hand, carry greater responsibility for building safety. They must install and maintain fire alarms, sprinklers, elevators, and life safety systems.
Frequently Asked Questions on the HOA Board
What are the HOA board positions?
In a typical setup, association boards have a president, vice president, treasurer, secretary, and non-officer roles. Illinois law requires at least a president, a treasurer, and a secretary. This is true for both HOAs (765 ILCS 160/1-25) and condo associations (765 ILCS 605/18).
Who can become HOA board members?
Generally, any homeowner in good standing can run for a seat on the HOA or condo board. That said, specific qualifications or requirements can vary depending on the association’s bylaws.
Do condo board members get paid?
No, board members, whether in an HOA or condominium, don’t receive compensation. Board members serve the community in a voluntary capacity, which means they don’t get paid. They also don’t get a discount on their dues in exchange for their service.
Are HOA board members personally liable?
Certain protections prevent personal liability for board members. These include state laws and the Business Judgment Rule. Adequate D&O insurance also helps.
Still, board members can be found personally liable in certain situations. Examples include breaching their fiduciary duty, committing fraud, exhibiting willful misconduct or gross negligence, abusing their power, or violating fair housing laws.
In the End
The HOA board plays a critical role in the continuous and successful operations of a community. Board members must understand their responsibilities to avoid liability and fulfill their roles effectively. Similarly, homeowners must know about the board’s obligations to keep them accountable.
First Community Management provides expert HOA, condo, and co-op management services to communities in Chicago. Call us today at (312) 829 8900 or contact us online to learn more!
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