DeSoto HOA Involvement Workshop Board Best Practices DeSoto HOA Involvement Workshop

What is an HOA for? The primary function of an HOA is to own and maintain the common property. Everything else is marketing. In an effort to control water pollution, the U.S. Clean Water Act of 1977 required new real estate developments to include detention or retention areas to hold excess storm water. Since these areas serve multiple residences, they are "common" areas. HOAs were created as a corporate entity to own and maintain these common areas. With this structure in place, developers could add amenities and institute landscape and maintenance requirements to make their communities more desirable.

Myths About HOAs They resolve disputes between residents. They control the behavior of residents. They make everyone’s house look the same. They keep owners from doing what they want to do on their own property.

What is the job of the Board of Directors? Ensure that the common areas are maintained Spend Association funds wisely Uphold and enforce the governing documents

Best Practice # 1: Transparency Hold open meetings. Publish financials. Provide a means to communicate with you. Educate and explain.

Best Practice #2 : Plan, Save, Spend Calculate expenses first, then determine the annual assessment, not the other way around. Establish and contribute to a reserve fund. Don’t defer maintenance. Increase the assessment when you need to. You will always need to eventually.

Best Practice # 3: Follow the Rules… Federal Laws Texas Property Code City or County laws Plat Declaration of Covenants, Conditions and Restrictions Articles of Incorporation Bylaws Resolutions or Rules

….But Change Them if You Need To The Association’s governing documents exist to serve the needs of the members. If they are no longer doing that, change them! Always consult an attorney before making changes to your documents. If you can’t amend the DCCR or bylaws, see if you can pass a resolution or architectural bulletin to get the desired result.

Best Practice #4: MYOB Don’t get involved in homeowner drama. Don’t get involved in Board drama. Don’t engage with homeowners on HOA related business outside of a board meeting. Don’t disclose confidential information, not even to your spouse or partner. Don’t speak on behalf of the Board unless the other members have asked you to. Publicly support the Board’s decisions, even if you privately do not agree. Don’t take it personally. Take the high road.

Best Practice #5: Listen to Experts If nothing else, it releases you from liability if it turned out to be a bad decision! But seriously… Your manager, lawyer, CPA, contractor, landscaper, etc. are experts in their field. Presumably you hired them because you wanted their opinion. Why ignore it? If you don’t trust their opinion, replace them with someone you do trust.

Best Practice #6: Give Yourself a Hand This is a thankless job. Thank you for doing it, and for serving your community.