What Every HOA Board Member Should Know

What HOA Board Members Need to Understand About Their Role

Many people volunteer for their HOA board because they want to help their neighborhood. Few realize that once elected, they are no longer just homeowners offering opinions. They are directors of a nonprofit corporation with real legal responsibilities.

In this episode of The Uncommon Area, Matthew Holbrook joins attorney Grant Neidenfeuhr of Cagle Pugh in Dallas, Texas to explain what board members need to know to serve effectively and responsibly. From the structure of associations to decision making, enforcement, and communication, the conversation highlights why education is one of the most valuable tools a board can have.

HOAs and Condos Are Nonprofit Corporations

One of the most important takeaways for new board members is that homeowners associations and condominium associations are nonprofit corporations. That means board members are directors of a corporation, subject to corporate duties and statutory requirements, in addition to the governing documents of the community.

Understanding this framework helps board members evaluate decisions beyond personal preferences or short term convenience. Every action should be filtered through what is best for the association as a whole.

Condos and Single Family HOAs Are Not the Same

The episode also dives into why it matters whether an association is a condo or a single family HOA, particularly in Texas where different statutes apply. From enforcement procedures to hearing requirements, the legal framework can change depending on how the community was created.

Board members who do not understand this distinction risk making decisions that create legal exposure or conflict with state law.

Acting in Good Faith and the Best Interest of the Association

Grant emphasizes that board members must act in good faith, deal fairly, and prioritize the best interest of the association. Personal considerations, such as plans to sell a home or avoiding short term backlash, should not drive decisions like assessment increases or reserve funding.

Documenting discussions, seeking professional guidance, and openly weighing pros and cons are practical ways boards can show they took their responsibilities seriously.

Communication Builds Trust

One of the most common frustrations homeowners express is a lack of communication. While boards may meet their legal notice requirements, that alone does not build trust.

The conversation highlights how tools like town halls, regular updates, and even thoughtful use of social media can help residents understand where their money goes and why decisions are made. When people understand the value of their association, tension often decreases.

Enforcement Requires Clarity and Consistency

Enforcing rules is rarely enjoyable, but it is a core responsibility of the board. Grant explains why violations must be clearly tied to governing documents and supported by evidence. Boards cannot enforce rules simply because they are unpopular or inconvenient.

Consistency, fairness, and following proper notice and hearing procedures protect both the association and the individuals serving on the board.

Education Changes Perception

One of the most powerful moments in the episode comes from a personal story about growing up in a neighborhood without enforceable standards and seeing firsthand how neglect affected property values. That experience underscores why associations exist and why enforcement and maintenance matter.

When homeowners understand the purpose behind assessments, rules, and long term planning, they are more likely to see their HOA as a benefit rather than a burden.

For board members and managers alike, this episode offers clarity, perspective, and practical guidance on leading communities responsibly.

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Disclaimer: Legal requirements vary by state. This episode uses Texas law as examples, and board members should consult local counsel for state specific guidance.

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