Cedar Management Group Blog
Many HOA board members do not realize how time-consuming a position on the board is, until after they have committed to their new position. It is difficult to juggle a professional life, home life and fulfill the duties that are required of a board member. In some cases, the board of directors will look to the management company to take care of everything so they can be completely removed from the day to day decision making activities. Unfortunately, this is not the role of either party. Both the community manager and the board of directors play an integral role in the successful management of a community association.
The members of the board of directors have a fiduciary relationship with the members of the association. This fiduciary relationship imposes obligations of trust and confidence in favor of the association and its members. Board members are required to act in the best interests of the members of the association. Also, they must exercise due care and diligence when acting as the voice of the community, within the capacity of their authority. Board members should remember the role of their fiduciary duty to the association when considering or making requests that affect the individual, private interests of any board member.
Being a not-for-profit corporation or an unpaid volunteer does not relieve board members from the high standards of trust and responsibility that the fiduciary relationship requires. Board members are not excused from improper action on the grounds of ignorance or inexperience.
The board's duties must be performed with the care and responsibility that an ordinary prudent person would exercise under comparable circumstances, and the ultimate responsibilities of these distinctive positions cannot be delegated to a manager, a management company or other third party.
The community manager is there to make sure the abovementioned is maintained and to offer advice as to the best course of action. This also includes implementing the decisions made by the board of directors. The community manager’s experience will help the board of directors if they have questions. Many situations have been addressed before, if not by the property manager themselves, by one their colleagues. The shared best practices within Cedar ensure our clients accurate and rapid information.
