Serving on a Homeowners Association (HOA) board is a significant commitment. You're entrusted with maintaining property values, ensuring community harmony, and upholding the governing documents. In Wisconsin, like elsewhere, HOA board members have specific duties and responsibilities. Let's delve into the key aspects of this important role.
Understanding the Foundation: Governing Documents
Before diving into specific duties, it's crucial to understand the foundation: the HOA's governing documents. These include:
- Declaration of Covenants, Conditions, and Restrictions (CC&Rs): These outline the rules and regulations for the community.
- Bylaws: These detail the operational procedures of the HOA, including board meetings, elections, and member rights.
- Articles of Incorporation: This document formally establishes the HOA as a legal entity.
Board members must be thoroughly familiar with these documents to ensure they act within their authority.
Key Duties of Wisconsin HOA Board Members:
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Enforcing the Governing Documents:
- This is a primary responsibility. Board members must consistently and fairly enforce the CC&Rs and bylaws.
- This includes addressing violations, issuing notices, and, when necessary, imposing fines or taking legal action (always within the boundaries of Wisconsin law and the HOA documents).
- Consistency is key to avoid claims of selective enforcement.
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Financial Management:
- Board members are responsible for managing the HOA's finances prudently.
- This includes:
- Creating and adhering to a budget.
- Collecting assessments (dues) from homeowners.
- Paying bills and maintaining accurate financial records.
- Obtaining appropriate insurance coverage.
- Potentially, working with accountants and financial advisors.
- Transparency is vital. Regular financial reports should be provided to homeowners.
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Maintaining Common Areas:
- Board members are responsible for the upkeep and maintenance of common areas, such as landscaping, pools, and clubhouses.
- This includes:
- Scheduling maintenance and repairs.
- Obtaining bids from contractors.
- Ensuring the safety and functionality of common areas.
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Conducting Meetings:
- Board meetings and annual meetings must be conducted according to the bylaws and Wisconsin law.
- This includes:
- Providing proper notice of meetings.
- Maintaining accurate meeting minutes.
- Allowing homeowners to participate in meetings.
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Acting in the Best Interest of the Association:
- Board members have a fiduciary duty to act in the best interest of the HOA and its members.
- This means:
- Avoiding conflicts of interest.
- Making decisions based on sound judgment and reasonable business practices.
- Acting with honesty and integrity.
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Staying Informed of Wisconsin Law:
- Wisconsin laws governing HOAs can change. Board members must stay informed of relevant legislation and regulations.
- Wisconsin statutes concerning non stock corporations, and condominium law, are important to know.
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Maintaining Records:
- Maintaining accurate records is very important. This includes financial records, meeting minutes, and homeowner correspondence.
Challenges and Rewards:
Serving on an HOA board can be challenging, but it can also be rewarding. You have the opportunity to make a positive impact on your community and help maintain its value.
Seeking Professional Guidance:
If you are a board member and have questions about your duties or responsibilities, it is always best to seek legal counsel from an attorney specializing in HOA law in Wisconsin.
Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.