Seven Signs Of A Dysfunctional HOA Board
Homeowner Associations (HOAs) are somewhat controversial, and that’s because they wield so much power. Each HOA board manages the operations, allocates funds, and enforces the rules. Unfortunately, some HOA boards can be quite dysfunctional and don’t prioritize their members.
Key signs of dysfunction, such as money mismanagement and intimidation tactics, can indicate the HOA board is problematic. You can also tell the HOA board is dysfunctional if they abuse power and make decisions without a proper vote. It’s worth consulting a lawyer or your fellow HOA members if you think your money is being misappropriated.
If you feel like the HOA board is abusing its power, you may not be alone. That’s why it’s worth talking to your fellow members, so you can band together and demand better. Follow along as we highlight sign signs that an HOA boeard is having problrms and explore some solutions.
Seven Signs Of A Poorly Functioning HOA Board
If you can’t trust your HOA, how can you justify paying dues? That’s a question many people ask themselves, and it’s fair. An HOA board becoming dysfunctional can manifest in many ways, such as:
1. Decisions Without Representation
Part of the appeal of being an HOA member is that you get to have a say in what goes on in your community. Like any organization, HOA boards sometimes include members who overstep their bounds. You can tell that’s the case if the HOA board makes key decisions behind closed doors without asking for or including for member perspectives. While an HOA board can only include so many people, they’re supposed to act on behalf of everyone.
The HOA can make certain unilateral decisions, but others are meant to be voted on by members. Frequently making decisions without member insight is a sign of a dysfunctional HOA board. Check the covenants, conditions, and restrictions (CC&Rs) and bylaws to see what the HOA board is allowed to do without a vote. If it oversteps its bounds, you have the right to voice your concerns and get others involved. The key is to come in with a plan and be ready to prove they violated the rules.
2. Unproductive Meetings
Not every HOA board meeting will be a significant, influential roundtable where everyone makes big decisions. However, you should at least be able to depend on the meetings to be productive and inclusive. A lack of direction is another warning sign of a dysfunctional HOA board. Productive HOA board members know to approach the meeting with an agenda and stick to it. Of course, you can’t control when other people derail the conversation, but you can get it back on track.
Unfortunately, that’s not always possible if people talk over each other and turn propositions down without an explanation. The best way to fix this problem is to establish a succinct timeline for each meeting. That includes how long someone can speak, how much time each topic gets, and who leads the meeting. This takes some trial and error, but it will at least help establish order and save time.
3. Abuse Of Power
Abuse of power isn’t solely restricted to big businesses and agencies, and it’s something many people see in their HOA. Identifying abuse of power on an HOA board can be tricky, but it’s easier if you understand the bylaws and CC&Rs. However, some abuses of power, such as selectively enforcing rules and imposing excessive fines, are easily identifiable. Imposing unenforceable rules, acting with bias, and intimidating members are all gross abuses of power. Fining a member for something other members do is at least a sign of poor management.
Failure to provide written notices before fining members is another sign of a dysfunctional HOA board. You owe it to yourself and your fellow members to hold the HOA board accountable for abuses of power. The best way to do so is to document the bad behavior, show how it violates the bylaws, and get other members to sign an open letter. Otherwise, you can anonymously report these abuses to a public HOA forum.
4. Poor Money Management
How the HOA uses the members’ money can affect everyone in the organization. Paying dues is part of being in an HOA, and most people expect the board to spend that money well. Mishandling money is a major sign of dysfunction and poor management. For example, if the shared community areas look disheveled and neglected. The dues are supposed to go toward managing those areas.
Luckily, many states require HOAs to provide financial records and plans upon request. It’s worth requesting these records if you and other members feel like the HOA is spending your money poorly. These records may reveal communication gaps and poor planning, or something more nefarious.
5. Board Member Inequality
All HOA board members should be privy to key information and have a say in decisions. Sometimes, one domineering person will take charge and railroad every board meeting and interaction. Not only does this defeat the purpose of having an HOA board, but it also shows that the other members have lost control. There are even cases of a few board members making decisions unilaterally without the board’s involvement.
It’s up to the other board members to stop a meeting and remind the offender that they all have a say in the proceedings. All it takes is one or two people to speak up and say that this is not how the board should work. This can be uncomfortable, but it’s necessary if the HOA board’s dysfunctional behavior shows no signs of improving. Sometimes, this dysfunction occurs because the other board members aren’t actively involved. In that case, a reelection may be necessary.
6. Exorbitant Fines
HOAs have many rules, and violating them can result in fines that must be reasonable and fall within the HOA’s bylaws. For example, you’re typically supposed to notify members before imposing fines, at least for certain offenses. That said, some overzealous HOA boards fine members and use them as a way to control and intimidate. Not only does this violate trust, but it can also create a toxic and uncomfortable dynamic in the neighborhood.
The worst-case scenario is when the HOA board specifically targets people who vocally disagree with their rulings. Anytime the HOA favors or treats someone more harshly, there’s a good chance that bias is involved. That’s especially true if new rules suddenly appear without member approval, seemingly to punish one person. In that case, involve your neighbors or consult a real estate attorney.
7. The Board Is Exclusive
Democracy is vital to an HOA’s success, and everyone should feel like they can eventually join the board. Not everyone wants to join the board, but they should be allowed to one day. However, some HOA board members try to control who can join the team. For example, they may routinely change the qualifications to keep specific people out of the group.
Similarly, they may propose new reasons why a certain person isn’t a good fit. HOAs work best when everyone clearly understands board membership criteria. From there, people who want to get more involved can apply to join. If you notice something fishy, mention it to your neighbors and the board to establish accountability. You can always remain anonymous if you fear that it may create an uncomfortable situation.
How To Remove An HOA Board Member
Removing an HOA board member is a multi-step process, and it only works if you follow the protocol. Your HOA’s bylaws should dictate how to remove a problematic board member. Keep in mind that you may leave yourself vulnerable to fines and even lawsuits if you fail to follow the procedure. In most states and HOAs, members must draft petitions to remove board members. In that case, a certain number of people must sign the petition to help the process move forward.
From there, members must meet and vote on the removal. Everyone must follow the bylaws, or else the removal won’t be considered lawful. Thoroughly research the process before attempting to remove a board member. Otherwise, you may make enemies without achieving anything.
Summing It Up
Poor money management and a lack of inclusivity are signs of a dysfunctional HOA board. You can tell something is fishy if the HOA board has unproductive meetings and makes decisions without involving HOA members. Don’t hesitate to write an open letter or even consult an attorney if you believe the HOA board is acting unlawfully.
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Nick Durante is a professional writer with a primary focus on home improvement. When he is not writing about home improvement or taking on projects around the house, he likes to read and create art. He is always looking towards the newest trends in home improvement.
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