A transparent HOA is ideally set up to succeed. It is perceived as an organization that values fairness. It is reliably honest and forthcoming about services, maintenance, decisions, and funding, and as such, it promotes a partnership with its members. 

 

Nothing will undermine a HOA more than operating in secrecy. Confidentiality and discretion may be required at times, such as when dealing with individual owners in violation of rules. But most HOA business is public information that should be transparent and accessible to all members. A board should always focus on clear communication and open door policies to eliminate the potential for doubts about its integrity. Through communication we share, inform, educate, motivate, and more importantly, listen. It is through this pattern of communication that we begin to develop a mutual understanding.

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Here you will find noteworthy publications on planned community governance include  Private Community Governments, Follow the Money Trail and Las Vegas HOA Fraud.

 

 

In an HOA, the fiduciary duties of the board consist of three components:

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      Duty of Loyalty

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Board members are required to make decisions based on the needs of the community, and must never make them to further their own agenda or for personal gain. They must also avoid conflicts of interest when working with contractors or outside vendors, or when voting on specific issues concerning the association.

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      Duty of Care

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Duty of care requires that board members always make informed decisions to the best of their abilities. Remaining up-to-date on association rules and relying on the knowledge of other informed board members will help ensure that duty of care is exercised properly.

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      Duty to Act Within the Scope of Authority

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By paying particular attention to state law, as well as the HOAs governing documents (including articles of incorporation, CC&Rs and bylaws), board members can properly carry out their duties without making decisions or taking actions without the authority to do so.