What happens if no one wants to be on the HOA board?

Q: I belong to a 55-plus community of 20 single-family homes. We are self-governed by a homeowners association board of five members. This past spring, the terms of two of the members expired and they declined to run again. No other residents volunteered to serve, so we are down to three board members.

Next spring two more board seats expire. If we can’t get anyone to serve on our board, what are our options? I want to add that many of our residents are in their 80s and 90s and they don’t want to serve on a board. There are some younger residents, but they won’t step forward to volunteer.

We have discussed dissolving the homeowner’s association, but residents don’t want to deal with lawn mowing, snow plowing and other matters that fall under the purview of the HOA. Even if we hired a management company, we would still need a board to be the liaison between residents and the company.

What do we do if no one wants to serve on our HOA board?

A: It seems as though everyone wants everyone else to take care of all the small details that make life easier. And, we get that. Unfortunately, artificial intelligence hasn’t evolved to a place where you can outsource all the duties and responsibilities of a homeowners association, sit back, and enjoy the good life.

Which is too bad for your fellow homeowners who want to shirk their responsibility of helping to manage your HOA. But, that’s the deal they struck when they moved into the development. They agreed to become owners in an HOA and absolutely should take responsibility for some of the ownership duties. Has anyone tried to recruit them to the board?

We discussed this in a column last year, where a homeowner asked about dissolving an HOA. Most HOA governing documents are more than just a list of who does what and when. Most governing documents also provide easements and other rights to utility companies and homeowners to use common areas, sidewalks and even roads. Want to park on the street in a development? It’s the HOA that figures out the rules associated with parking spots. Need insurance for your community? The HOA has to approve the contract. So, it’s not that easy to just say “We’re done,” and dissolve an association.

You should find a management company to handle the heavy lifting that goes with running the association. The biggest part of the job includes billing the monthly, quarterly or annual assessments, annual filings, purchasing insurance, and, of course, hiring contractors and others to assist in the maintenance and repair of the HOA common areas. You’ll want this company to handle just about everything. That would leave only basic functions for the board of the HOA.

Of course, there will be a cost for this. You’ll need to let your neighbors know how much more they can expect to pay each month for this service.

Can you lighten the board members’ load even more? You’d have to look at your governing documents, but you might only need to have quarterly meetings. At those, you’d discuss only the big issues brought to you by the management company. The board would still need to deal with passing a yearly budget, approving expenditures for improvements, repairs and replacements, and enforcing any rules and regulations. And, someone would have to watch the management company to make sure they aren’t ripping off the HOA.

But the board would no longer need to hire landscapers, painters, cleaners or other tradespeople to perform work at the development. Or have a board member bill the assessments, handle the books or file paperwork with government agencies. The management company should handle all of that.

Will your co-owners be willing to pay what it takes to off-load the work? Perhaps not, but they can’t have it both ways. They can’t sit back, do nothing, and expect that someone will take care of the management and operation of the property for free.

While you still have a board in place, you should convene and hire a management company. But make sure that you can do that when you only have three of the required five members. You might need to find two other owners willing to serve briefly or with the new management company in place to provide backup. Let them know that their role would be less than it used to be as you plan to hire a management company. With a full board, you can hire the company and lessen the burden and responsibilities of the board members.

Good luck; let us know how it goes.

========

(Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask” (4th Edition). She is also the CEO of Best Money Moves, a financial wellness technology company. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, ThinkGlink.com.)