Investing in HOA board member training is one of the smartest decisions an association can make. Board members are responsible for managing the community, so it is important to equip them with the right knowledge and tools to do so successfully. Without training, board members may inadvertently violate statutory requirements and expose the association to legal liability.
What is HOA Board Member Training?
In an HOA, board training refers to the process of teaching or learning specific skills or information concerning the management of the association. Most communities offer training or orientation to incoming board members, but they also typically stop there. After the session, board members are left to their own devices.
Are Board Members Required to Undergo Training?
In most states, there is no statutory requirement for board members in an HOA or condominium to undergo training. That said, some governing documents make board training mandatory, even if it’s just at the start of new board service.
Board members are just volunteer owners, so no degree or specific licenses are generally necessary. Implementing a requirement for formal HOA or condo board of directors training may discourage owners from joining the board. It can also reduce the pool of qualified candidates, which can be detrimental to small associations.
The Importance of HOA and Condo Board Training
While not necessarily required, HOA board training comes with several benefits. For one thing, it allows board members to familiarize themselves with their obligations and scope of authority. When directors understand their duties and limitations, they are less likely to make mistakes.
Training also involves learning the requirements and procedures relevant to board roles. Through the process, board members can understand how to deal with various issues when they arise.
Additionally, there is a general improvement in operational efficiency and financial stability. The association can run like a well-oiled machine, as maintenance schedules and capital projects stay on track. When the board knows the proper way to collect dues, plan the budget, and account for reserves, cash flow remains smooth.
Finally, HOA board training triggers a domino effect. When everything is running seamlessly and successfully, owners are more likely to put their trust in the board. This results in better board credibility and association reputation.
What to Include in Condo and HOA Board Education
Every training program is different, but most tackle the following topics:
1. Roles and Responsibilities
Board members must grasp the specific duties tied to their officer role. For example, the secretary is responsible for maintaining records, taking meeting minutes, and general documentation.
2. Meeting Protocol
Associations must conduct board meetings as per 765 ILCS 160/1-30 (for HOAs) and 765 ILCS 605/18 (for condos). Training should cover how often meetings take place, etiquette requirements, and procedures for open comments. Boards must also acknowledge that their attendance is a must.
3. Decision-Making Process
The training sessions must tackle how the board makes its decisions. These include procedures for discussions, motions, and votes.
Additionally, board members must practice due diligence. They should never vote without context and research. Once a decision is made, the board must present a unified front, even when not all directors agree with the outcome.
4. Legal Compliance
Associations must comply with state laws and their governing documents. Board members must also understand their fiduciary duties and do their best to uphold them. This means avoiding conflicts of interest and managing risk properly.
5. Financial Management Duties
While the treasurer takes on the brunt of the financial tasks, all board members must be aware of how to keep each other accountable. Segregation of duties is also paramount as a form of internal control. This prevents giving a single director too much power or access.
6. Due Process
Board members must comprehend and practice due process for rule enforcement. This includes providing written notice and an opportunity to be heard.
Moreover, not all penalties are available to every association. Some are permitted to levy fines and suspend privileges, while others are only confined to the former.
7. Vendor Selection
Boards are responsible for choosing and managing vendors. Training must cover how to solicit bids, interview candidates, and pick a vendor based on a matrix. Directors must also understand how to evaluate vendor performance.
8. Dispute Resolution
Conflicts are difficult to avoid, especially in a community with diverse residents. Board members must know how to resolve disputes and what approaches to take.
Neighbor-to-neighbor conflicts don’t always call for board intervention. That said, if the dispute is between an owner and the association or board, internal or alternative resolution methods may apply.
9. Code of Ethics
Many associations abide by a code of conduct or ethics. Board members must understand what this code requires and how they can follow through. Unethical directors may face legal challenges or even removal from the board.
Where to Access HOA Board Training
Board education has many sources, including but not limited to internal programs, management company offers, and certification courses.
Internal Training
Most communities have their own in-house training or orientation programs. This involves basic or crash courses, with experienced leaders passing on knowledge to new ones. During their tenure, board members continue to read up online on best practices and trends. If the community doesn’t have the budget for external training, this is the best option.
Management-Provided
Some HOA management companies offer free training for HOA board members as part of their packaged services. The benefit of this option is that boards can learn from certified professionals. In addition to classroom learning, board members can also observe their managers at work.
Official Organizations
The most formal option is to enroll in an HOA board member certification course. The Illinois Chapter Community Associations Institute offers education programs online and in the classroom to help board members run their associations.
Courses cover topics on governing association communities, fair practices, insurance and risk management, understanding financials, and more. Participants will receive a certificate upon completion.
The Association of Condominium, Townhouse, and Homeowners Association (ACTHA) also offers webinars, conferences, courses, and access to other resources to help board members improve their leadership abilities while serving out their board term. Certificates are also awarded upon completion of exams and course modules.
A Working Compromise
Proper HOA board member training benefits not only the directors themselves but the owners and community at large. Of course, not every association has the budget or time to invest in professional training courses. While internal programs can work, a good middle ground is to hire an HOA management company.
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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