Do HOA board members get paid? While board members take on a lot of work to keep the association running, compensation is rarely in the cards. This may discourage some residents from volunteering, but it helps preserve integrity and protection against liability.
Do HOA Board Members Get Paid?
In general, HOA board members do not receive compensation for their services, but this can vary depending on state laws and the governing documents.
Most homeowners associations and condominiums treat board positions as unpaid roles. Owners volunteer to run for open seats, and their fellow neighbors elect them.
That said, it all boils down to what the law and the association’s bylaws allow. If the governing documents don’t explicitly allow salaries or stipends, board members can’t receive payment.
Can HOA Board Be Paid?
Paying HOA board members a salary is permissible only if the association’s governing documents expressly authorize it. Otherwise, board members can’t receive payment.
That said, it is possible to amend the CC&Rs and bylaws to allow compensation. Amendments require adherence to established requirements and procedures.
In Virginia, Section 55.1-1829 requires a two-thirds vote of the owners to amend the CC&Rs unless otherwise provided. Similar voting thresholds exist for amendments to condominium governing documents under Section 55.1-1934.
In Maryland, under Section 11B-116, HOAs must secure the affirmative vote of at least 60% of the membership to amend the governing documents, unless the documents themselves require a lower percentage. Condominiums, on the other hand, require written consent from 66 2/3 percent of the unit owners to amend the CC&Rs as per Section 11-103.
It is unlikely for the board to obtain enough votes to authorize compensation. Owners are generally hesitant to approve any decisions that would compromise the board’s integrity or unnecessarily raise dues.
Can HOA Board Members Get Reimbursed?
Even when board members cannot be paid for their services, they may be reimbursed for out-of-pocket expenses incurred while conducting official business.
Reimbursements are not the same as compensation. Throughout their service, board members may incur costs they must temporarily shoulder. Examples include office supplies or printing.
Provided the expenses are reasonable and documented, and the board follows proper protocol, the HOA can reimburse the costs. It is important to establish a standard expense policy for reimbursements that requires an itemized receipt for each expense.
Do HOA Board Members Pay Dues?
Board members pay dues to the association, just like every other homeowner. They don’t receive special treatment or any sort of exemption in exchange for their service to the community.
Waiving fees is essentially tantamount to receiving a form of compensation. If the governing documents don’t explicitly permit this practice, doing it anyway can constitute an improper financial benefit. It is a conflict of interest and can call the board’s credibility into question.
Similarly, board members are not immune to rule violations. If a director breaks a rule, they must receive the same treatment as everybody else. They must undergo due process, which includes notice and a potential disciplinary hearing, and even face fines or other penalties (where applicable).
Why Prohibit HOA Board Member Compensation?
Other than when it conflicts with state laws or governing documents, board compensation is generally prohibited or avoided to prevent conflicts of interest, keep the budget affordable, preserve resident trust, and retain volunteer liability protections. Let’s break these down below.
1. Against State Laws or Governing Documents
The most fundamental reason to ban board compensation is that it conflicts with state laws or, more frequently, the governing documents. Associations shouldn’t assume that they can pay directors simply because the CC&Rs and bylaws are silent. The lack of a provision doesn’t equate to permission. Instead, the documents must expressly state that directors may receive a salary for their services.
2. Prevents Conflicts of Interest
Board compensation breeds conflicts of interest. For example, paying an HOA president a salary might tempt them to increase their wages or vote for other financial benefits. This can lead to questions about whether the board serves the community’s needs or their own personal gain.
3. Keeps the Budget Affordable
Generally, an HOA board consists of three to seven directors. Paying salaries to multiple board members can place an undue burden on the association’s budget. Homeowners would have to pay higher dues just to cover the cost.
4. Preserves Resident Trust
Homeowners feel more secure knowing that personal gain does not motivate their leaders. It circles back to conflicts of interest. If board members are paid, they may prioritize raising their salaries or ensuring they receive compensation when money is tight. Boards must always put the community’s best interests first.
5. Retains Volunteer Liability Protections
Unpaid volunteers benefit from broader legal protections. Compensation interferes with this setup, as board positions turn into paid jobs. This can render those protections void.
Do HOA Members Get Paid?
Members of an HOA or condo community don’t receive compensation, whether they are directors or residents.
Homeowners become members of an HOA when they purchase a home in the association. They agree to fulfill the obligations expected of them, which include paying dues, following the rules, and maintaining their properties. As members, they do not receive compensation.
Board members are volunteer homeowners. This means they have the same obligations as other homeowners, but with added responsibilities that come with their positions. As board members, they must enforce the rules, collect dues, and coordinate maintenance. Unless the governing documents say otherwise, they do not receive compensation either.
Professional managers, on the other hand, are different. While some communities rely on self-management, many others hire HOA management companies or managers to assist with board duties. These companies or managers receive payment as a monthly management fee, plus additional fees for extra services.
Do HOA Board Members Get Paid? Answered!
In general, HOA board members don’t receive a salary or any kind of compensation for their services. Payment can muddy the waters, produce conflicts of interest, and diminish trust. Board members must prioritize the community’s well-being above all else.
Keymont Community Management offers expert financial 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!
RELATED ARTICLES:
- HOA Board Of Directors: Roles, Duties, And Fiduciary Responsibilities
- The Essential Guide To HOA Documents: From CC&Rs To Bylaws
- HOA Board Member Recusal: When’s The Right Time To Excuse Yourself?
