Even the most experienced of boards can get stumped when faced with HOA problems. When boards fail to recognize these problems, even the smallest of issues can become major setbacks. Board members must know how to identify these problems and prepare for them.
Common HOA Problems to Know About
Homeowners associations operate in much the same way as a corporation. As with any business, associations can face a wide range of problems. It is the HOA board’s job to prevent or resolve these problems when they arise.
Here are the most common homeowners association problems to note.
1. Conflicts of Interest
Conflicts of interest can damage trust faster than almost any other issue. Residents expect board members to act in the community’s best interest. But when a board member benefits personally from a decision, problems can quickly surface.
Some examples of a conflict of interest include:
- Hiring family or close friends to become an HOA vendor
- Voting on issues that involve the board members directly
- Accepting gifts or perks from contractors
- Favoring one group of homeowners over another
To avoid this, board members must always disclose any conflict of interest. They must then recuse themselves from the discussion and subsequent vote to ensure fairness. Documentation is crucial, and transparency is even more so.
2. Selective Enforcement
Selective enforcement happens when the board enforces rules unfairly or inconsistently. For example, one homeowner may get penalized while another does not for the same violation. Another example would be when the board enforces one rule but ignores another.
Selective enforcement not only breeds distrust, but it also exposes the association to risk. It can render rules void and even make board members personally liable.
3. Poor Financial Management
Many HOA problems stem from poor financial management. The board is responsible for budgeting, collecting dues, and planning the reserves. When the board doesn’t practice care or intentionally commits financial crimes, things can quickly go awry.
4. Communication Breakdowns
Residents tend to want answers fast. Being made to wait can lead to anger and distrust, so it’s important for boards to practice open, consistent communication. Keep residents updated about projects, rule changes, and other concerns. The board should never let rumors persist.
5. Maintenance Delays
Maintenance delays can be very frustrating, especially since they can negatively impact property values. When the board fails to maintain common areas, residents may feel that the board isn’t doing its job. Additionally, delays can cause problems to escalate, costing the association more in repairs.
6. Neighbor Disputes
Neighbor disputes are common in HOA settings because people have different opinions. These disputes can include noise complaints, parking issues, and pet problems. Some residents complain to their HOA, expecting the board to serve as a go-between.
It is important for boards to keep a good balance. While not every dispute requires intervention, those that do often involve rule violations. In extreme cases, such as when there are threats of violence involved, it’s best to contact local police.
7. Board Fatigue or Burnout
Board members are just volunteer homeowners, so they often have to balance personal obligations and lives outside the HOA. Since managing a community demands significant time and effort, fatigue or burnout is not unheard of. To prevent this, boards should divide up tasks equally, rely on committees, and consider hiring professional help.
8. Legal Issues
Legal issues are one of the most prevalent HOA problems. Even simple disputes can turn into legal complaints. Common issues include improper meeting notices, election disputes, discrimination claims, and conflicting rules.
9. Poor Vendor Relationships
Vendors play a huge role in the success of any community. When vendor relationships turn sour, projects can fail, and costs can rise. To avoid this, board members should be careful when selecting possible vendors. Price alone should not dictate the board’s decision. Consider track records, past performance, and contract terms.
10. Falling Behind on Technology
Many communities still rely on paper documents and records. While this setup can still work for small communities, it often creates problems as the association grows. Without proper management, records can get lost, reports can become inconsistent, and approvals can go missing.
Technology upgrades can help keep everything on the right track. It can also promote better transparency and convenience for homeowners. Boards shouldn’t be scared to evolve with changing tech.
11. Low Resident Engagement
Communities rely on homeowners to keep operations going. Without resident support, things can quickly fall apart. To foster a cooperative environment, the board should regularly communicate with residents. Invite them to gatherings and meetings. The board should also maintain an approachable aura to avoid scaring people away.
A Guide to Dealing With HOA Problems
Problems can escalate when the board fails to act quickly. Here are the steps to deal with HOA challenges.
1. Review State Laws and Governing Documents
Board members should refer to state laws and their governing documents for guidance. Most of the time, these documents dictate how boards should handle problems when they arise. Every decision and action must also align with these provisions.
2. Document Everything
Documentation can protect the association in the long run. Boards should maintain clear, accurate records to reduce confusion and maintain transparency. When a legal issue arises, boards can use records as a reference.
3. Promote Transparency
Board members should make every effort to keep homeowners in the loop. When homeowners understand what the board is doing and why, they are less likely to complain. Transparency can also reduce rumors and foster trust within the association.
4. Plan Proactively
Many issues happen because the board reacts too late. By making proactive plans, the board can anticipate problems before they worsen. For example, ensuring well-funded reserves will help the association prepare for major repairs and replacements. Adopting a routine maintenance schedule also keeps delays to a minimum.
5. Undergo Training and Education
Volunteer board members rarely have the right expertise and experience for the job. For better governance, boards should invest in continuous training and education. There are plenty of workshops, seminars, and training programs available, even online.
6. Hire Professionals
Self-managed boards should consider hiring professional help. An HOA management company can help reduce the workload and prevent costly mistakes. It can also ensure consistent enforcement and operations.
Lawyers are also a valuable asset to any community. They can guide the board when navigating legal issues and decisions. Reserve analysts and accountants, on the other hand, can help the board prepare the community financially.
For Better Governance
Every community will face HOA problems one way or another, even when residents get along, and the board works hard. By understanding these problems and knowing how to prevent them, associations can limit liability and ensure long-term success.
Keymont Community Management offers expert management services to associations in Virginia, Maryland, and Washington, DC. Call us today at 703.752.8300 or request a proposal to start your journey!
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