Every association has certain requirements for HOA board members as set by state laws and the governing documents. Before running for a position, homeowners must understand these requirements and ensure they meet them. Board members, on the other hand, must know what qualifies a candidate to serve.
What are the Requirements for HOA Board Members?
Board members act as the leaders of a homeowners association or condominium. They hold meetings, execute contracts, collect dues, enforce the rules, and make decisions that benefit the community. While board members are volunteers, not just anyone can run.
The requirements for HOA board members can vary depending on the association. Some have more stringent prerequisites, while others are more relaxed. State laws offer guidance on these qualifications, but they are not always detailed. It is best to review them, along with the governing documents, to understand the requirements.
Common Requirements for HOA Board Members
While the law doesn’t require board members to have a specific educational background, some skills and qualifications are better suited than others. Additionally, an HOA may have some special requirements of its own depending on the bylaws.
Here are the most typical HOA and condo board requirements.
1. Unit Ownership
One of the most prevalent HOA board of directors qualifications is membership. A board member must be a unit owner within the community. This often eliminates non-owners, such as renters or those whose names aren’t on the deed, from running.
In Illinois, condo associations must elect their directors from the pool of unit owners in the community (765 ILCS 605/18). The same goes for HOAs (765 ILCS 160/1-25). This is the bare minimum qualification.
Many communities also have residency requirements. For instance, an association may require an owner to reside within the community for at least a year before they can run for an open position. This helps ensure that the candidate is familiar with how the association operates before diving headfirst into leadership and making changes.
2. Good Standing
Unsurprisingly, many associations require candidates to be in good standing. This means staying current on all HOA or condo fees and complying with the association’s rules. If a candidate has a pending violation or is delinquent, they may not be able to run.
3. No Conflicts of Interest
Another one of the chief requirements for HOA board members is to have no conflicts of interest, especially in the financial sense. This prevents board members from making decisions that personally benefit them.
Now, this can be a problem for small associations that have a limited pool of candidates. Small towns can also make it difficult, as a lot of people know each other. In any case, board members must disclose any potential conflicts of interest to ensure they meet their fiduciary responsibilities.
4. Legally Qualified
Board members must be legally permitted to lead the association. This means they have no existing legal issues that may disqualify them from service. Common examples include a criminal record or any threatened or ongoing litigation with the association, as these can interfere with their ability to fulfill their duties.
Moreover, a criminal record, specifically a felony conviction, can block an association’s insurance or increase premiums. This is due to the higher risk that carriers take on.
5. Term Limits
For condominiums, board members have a term limit of two years, but they can run for the board again (765 ILCS 605/18). For HOAs, the term limit is four years, but consecutive terms are permitted (765 ILCS 160/1-25).
6. Fulfillment of Fiduciary Duties
Board members have certain fiduciary duties to meet. This includes the duty of care, the duty of loyalty, and the duty to act in the best interest of the community. Boards must manage funds appropriately and make decisions that serve the association’s benefit.
7. Must Attend Meetings
Directors have to set aside time for the association, and one of the major time-eaters is board meetings. In any community, board members are expected to actively participate in these meetings, not just be present. It is one of the most important HOA board member qualifications.
8. Understand Governance and Duties
It’s beneficial for board members to have a good understanding of Illinois law, their association’s governing documents, community management principles, and best industry practices. While a certification or degree isn’t always required, it does help. Many associations require their leaders to undergo training and continuous education.
9. Works Well With Others
One of the most obvious yet neglected qualifications for an HOA board member is to be a team player. Board members must cooperate with their fellow directors and make decisions as a unit. For this reason, candidates must know how to work collaboratively and make meaningful contributions.
HOA Board Member Requirements FAQs
How many board members should an HOA have?
State laws and the governing documents generally determine how many board members an association must have. Broadly speaking, most maintain 3 to 7 directors. An odd number is preferable to ensure there are no tie decisions.
In Illinois, both HOAs and condominiums must have at least a president, a secretary, and a treasurer. This means that a minimum of three directors is necessary. Still, the bylaws can require more than that.
Do HOA board members get paid?
No, board members don’t typically receive compensation for their service. They are also barred from accepting gifts, discounts, or favors, as that can constitute a conflict of interest.
That said, Illinois law does not expressly prohibit associations from paying board members a wage or salary. Still, the governing documents must explicitly allow this practice as per 765 ILCS 160/1-25 (for HOAs) and 765 ILCS 605/18 (for condos).
Can spouses serve on the HOA board at the same time?
State laws and the governing documents dictate whether spouses or members of the same household may serve simultaneously on the board. In Illinois, condominium law specifically states that only one owner from a single unit can be a board member at any given time (765 ILCS 605/18).
Can homeowners remove HOA board members?
Removing a board member is possible, but the requirements and procedures depend on state laws and the governing documents. More often than not, a membership vote must take place, with a two-thirds majority approval required. Homeowners can also typically remove a board member with or without cause unless the bylaws say otherwise.
Getting Advice
Many associations find it hard to navigate the requirements for HOA board members, especially when state laws and the governing documents are difficult to interpret. When in doubt, it is best to seek legal and professional advice from 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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