An HOA board resolution is an important component of community management. Created by the board, the resolution is a formal statement that serves to validate and support the board’s operations. It defines its purpose, specifies future actions and outlines the policies and decisions made by the board.
The three common types of HOA board resolutions include administrative/procedural, which deal with internal processes and how the board is run; policy, which cover the rights and obligations of owners and can be used to further clarify governing documents; and special, which deal with unique situations. The process for creating a board resolution is pretty standard, regardless of resolution type.
Check the laws.
State and federal laws take precedence over any rules or regulations that govern a community association. Furthermore, board resolutions are admissible in a court of law. As such, it’s imperative that the board itself perform its own due diligence to ensure that everything contained within the resolution is in compliance with the law. Otherwise, at best it could be deemed unenforceable, and at worst, it could become a legal liability. For best results, consult with an attorney with experience with HOAs.
Following the law, the next important thing to confirm compliance with is your HOA’s governing documents. Specifically, you’ll want to ensure that these documents grant the board the appropriate authority to create new resolutions. For best results, when drafting the resolution, reference the specific section of the bylaws that grant the power to enact said resolutions. That way it’ll be easy to find if needed.
Next comes the part where board members begin discussing the details of the proposed resolution. This step should cover specific topics, such as the purpose of the resolution, proposed enforcement activities and other specifics relating to the topic(s) at hand. The purpose of this step is to ensure that everyone on the board is on the same page and that any and all questions or concerns are addressed.
While passing a resolution doesn’t typically require the approval of owners, that doesn’t mean they shouldn’t be involved in the process. After all, the outcome will impact them, as well as their community. Once your resolution is drafted, provide a copy to each association member, asking them to review it and respond with feedback. If the board deems that there are any legitimate concerns, they should be addressed accordingly.
Vote and enforce.
With a final version of the resolution in hand, it’s time for the board to formally cast their votes. Upon passing of the resolution, the board can then officially begin enforcing it. Just be diligent to ensure that every resolution is enforced in a manner that is consistent and unbiased. Otherwise, you’ll risk lack of support from the owners within the community and a potential loss of trust for the board itself.
An HOA board resolution helps to document and clarify any and all community procedures, internal operations and other specific situations. The steps listed here should provide a good framework to help your board create, manage and enforce resolutions in a positive, professional and effective manner.