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                        Board of Directors   

                   

 

Homeowners elect a board of directors to operate the association and preserve, enhance, and protect the value of the common interest development.  The Board of Directors must answer to the homeowners. Frequently, an association's board of directors will contract with a professional management company to run the day-to-day affairs of the association. Notwithstanding the retention of a professional management company, or its reliance on the advice of others (attorneys, accountants and other professionals), the board of directors has the ultimate responsibility for oversight of the homeowners' association.

 

The members of the board of directors are elected yearly by the members (typically at the annual meeting of members), or at such other intervals as are mandated in the association's governing documents and/or applicable state law. The governing documents (generally the bylaws) also fix the number of directors.  Interim vacancies that are caused by the death, resignation or removal of an elected director are generally filled by the remaining directors.  Generally, the owner of each unit or lot within the association has one vote regardless of the number of people that own it.  There may however, be limited exceptions for sub-dividers and developers that provide them with additional votes for each lot or unit they own.

 

To become a member of the board of directors, an individual member can request that the association, or its nominating committee place their name on the election ballot for other members to consider at the time of an election. A member can also request that the board of directors consider appointing them as an interim member of the board of directors when there is a vacancy to fill.

 

The board of directors has the ultimate responsibility for operating the association. To properly operate the association, the board members must deal in good faith on behalf of all of the individual homeowners and they must exercise reasonable.  It is the board of directors' responsibility to make sure the association's money is collected, its bills are paid, its property is maintained and operated efficiently, and that violations of the association's governing documents are addressed. The board's responsibilities include, but are not limited to reviewing association bank statements, preparing and distributing to the members a budget, preparing and distributing annual financial statements. Other responsibilities of the board of directors are set forth in the association's governing documents and the law of the state in which the association is located.