An HOA board review can be a valuable tool for checking performance and finding ways to improve. Board members handle many responsibilities in a community, from collecting dues and enforcing rules to maintaining common areas and resolving disputes. Regular evaluation can help the board determine whether it is effectively carrying out these responsibilities.
What is an HOA Board Review?
An HOA board review is a process wherein the board’s performance is evaluated. It can involve reviewing the HOA board as a collective unit or assessing each director individually.
Some boards may think that the goal of this review is to criticize their actions, but that is not the case. A review can help the board understand what is working and what isn’t. It can identify strengths and weaknesses, helping the board develop an action plan to support improvement.
Moreover, regular reviews promote accountability. They encourage the board to do its best to fulfill key duties and meet objectives. This, in turn, can enhance decision-making.
How to Conduct an HOA Board Performance Evaluation
Several ways to review the board’s performance include a self-evaluation, an owner survey, and an assessment from the HOA management company. Let’s discuss these methods below.
1. HOA Board Self-Evaluation
With a self-evaluation, board members examine their own performance. Each director answers the same set of questions about the board’s strengths, weaknesses, and responsibilities.
Many associations use a rating system to make answers easier to compare. For example, directors can rate each metric from one to five before writing comments to explain their score.
Self-evaluations can be difficult, as many people struggle to be objective about their own shortcomings. Furthermore, directors may hesitate to be honest out of fear of retaliation or hurting fellow board members’ feelings. To avoid this, it helps to do the evaluation anonymously.
2. Owner Surveys
Homeowners have a front-row seat to how the board operates and how their decisions affect the community. For this reason, it is beneficial to get their point of view, too.
To seek input from owners, board members can organize a community-wide survey. Questions can focus on communication, maintenance, rule enforcement, and financial management. They can also ask whether owners are satisfied with the board’s performance.
Surveys should be objective. Homeowners should give unbiased evaluations and avoid getting personal. Similarly, directors should not hold residents to any of the answers. Keep these surveys anonymous to prevent retaliation and to encourage honest responses.
3. HOA Management Company
An HOA management company can provide another perspective on board performance. Managers work closely with board members, so they have a closer view of how the board operates. They may notice things directors or residents miss.
Key Metrics for an HOA Board Evaluation
When conducting an HOA board review, key metrics should include meeting effectiveness, financial management, communication, rule enforcement, maintenance and projects, homeowner satisfaction, decision-making, legal compliance, and follow-through. Let’s discuss each one below.
1. Meeting Effectiveness
This measures how productive and organized the meetings are. Questions can include:
- Are board members prepared for meetings?
- Do the meetings stay focused on the agenda?
- Do the meetings result in clear decisions?
2. Financial Management
Associations handle a lot of money in day-to-day operations. Questions can include:
- Does the board follow the budget?
- Does the board prepare, review, and share financial reports?
- Are dues and assessments collected according to the policy?
- Does the HOA have healthy reserves?
- How does the board deal with financial problems?
3. Communication
This checks if the board effectively communicates with each other and residents. Questions can include:
- Does the board communicate clearly and consistently?
- Are notices sent in accordance with legal requirements?
- How are projects communicated to residents?
- Does the board distribute updates and other important information in a timely manner?
4. Rule Enforcement
Board members implement the rules. Sample questions include:
- Does the board enforce the rules fairly and consistently?
- Does the board follow due process?
5. Maintenance and Projects
This measures whether the board manages maintenance and projects properly. Sample questions include:
- Does the board maintain common areas effectively?
- Are repairs or projects completed within reasonable timeframes?
- Do projects stay within budget?
6. Homeowner Satisfaction
This shows whether residents are pleased with the board’s performance. Sample questions include:
- Do homeowners attend and participate in community affairs?
- Do homeowners trust the board’s decisions?
- Are homeowners generally happy with the board?
7. Decision-Making
The board makes everyday and long-term decisions for the community. Common questions include:
- Does the board do proper research before making a decision?
- Does the board prioritize the association’s best interests?
- How are conflicts of interest handled?
8. Legal Compliance
This measures whether the board operates within its legal authority. Common questions include:
- Does the board follow state laws?
- Does the board adhere to the governing documents and other association policies?
- Is an HOA attorney consulted before major decisions?
9. Follow-Through
Board members must execute decisions after making them. Common questions include:
- Are assigned tasks completed on time?
- Does the board follow up on unresolved issues?
What to Do with Evaluation Findings
Once the board has tabulated scores and compiled responses, the next step is to use the findings to create an action plan. This includes setting goals, assigning responsibilities, undergoing training, tracking progress, and sharing the wins. Let’s discuss these below.
- Set Goals. Boards should start by identifying the most common complaints or issues and setting clear, attainable objectives.
- Assign Responsibilities. Next, the board should assign tasks and outline specific steps to achieve the goals above. Tasks should have clear owners and completion deadlines.
- Undergo Training. When needed, boards should improve by signing up for training courses, online classes, webinars, and other educational resources.
- Track Progress. Don’t adopt a set-it-and-forget-it mindset. Instead, the board should monitor performance throughout the year and check whether it has achieved its goals or shown improvement.
- Share the Wins. When homeowner feedback leads to a change, the board can let the community know. This shows owners their input matters and helps board members feel appreciated.
How Often Should an HOA Board Review Happen?
While no single schedule works for every association, general practice calls for an annual HOA board review.
Conducting an evaluation at least once every year gives the board enough time to set goals, identify trends, and execute an action plan. Most associations schedule it before or shortly after the annual meeting. Keeping the timeline consistent also makes it easier to compare year over year.
Of course, the board can also organize an impromptu evaluation. This usually happens during a major project, repeated owner complaints, or a leadership change.
In Summary
An HOA board review helps directors understand what the board does well and what it needs to improve. Methods include self-evaluations, owner surveys, and input from HOA management. Still, once the findings are compiled, it is important to put a plan in place to help the board address problem areas.
First Community Management offers expert HOA management services to condos and HOAs in Chicago and beyond. Get in touch with us today!
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