Oftentimes when asking homeowners this question, most do not. They trust that the fine volunteers who are elected to the Board of Directors are doing a great job. This may or may not be the case. There isn’t a mandatory class or educational requirement to serve on your community’s Board of Directors. There isn’t a behavioral or mental health test necessary to become elected. Your community could have a Board of Directors that is made up of experienced business professionals or you could have a Board of Directors who lack practical business experience but have a passion for volunteer service. Therefore, it is recommended that you attend your board meetings occasionally to keep a pulse on what’s going on.
Your Board of Directors is responsible for managing association assets, including the assessment income and your community’s budget. The Board of Directors determine where the funds are to be allocated for the given year. If you’ve been wanting to see the pool get resurfaced for the past couple of years and it hasn’t been accomplished, your elected leaders in your community make the call as to when things get done. Typically, large projects like this are budgeted and forecasted in the reserve study for your community, which is a formal report that helps guide the Board of Directors on anticipated replacement costs and the estimated year the work will be required. The reserve study for your community is a tool you should be familiar with, as it is available to all homeowners for review. If your community doesn’t have a reserve study, it would be advantageous for you to recommend to your Board of Directors that they have one completed. This way the funds that are being transferred to the reserve account for the community monthly are not arbitrary but rather tied to an actual 3rd party report that dictates where the reserve fund balance should be, and the work slated for completion in the given year. By having a reserve study completed your community will be able to better determine the overall financial health of the community.
Being aware of what’s going on in your community is important, as you as a homeowner through your membership in the association can be financially on the hook for deficiencies in your community’s budget. Getting involved and participating in your community’s board meetings will help you stay abreast of changes coming to your community and ensure you don’t get any unexpected surprises.
Our experienced management team would be happy to assist you with any questions