Tag Archives: fiduciary

Common mistakes of HOA boards of directors

Michael HunterIn this week’s column, and next week, I address some of the most common mistakes made by homeowners’ association boards of directors.

1. Failing to enforce covenants, rules and regulations consistently and uniformly, or engaging in “selective enforcement.”

The HOA board really has only two functions: to maintain the common areas and elements in the community, and to enforce the covenants and rules of the HOA.

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What is Fiduciary Duty?

We often hear that a board must act within its Fiduciary duty, but what does that really mean? 

Fiduciary duty means that your board members are bound under state law – usually a general nonprofit corporation or specific condominium/community association statute – to act within their authority, to excercise due care and to act in good faith, taking into account the association’s best interest.  Under the fiduciary model, board members do not have individual power or authority.  Rather, decision-making ability rests with the full board. (see our article Developing a communications policy for more information)

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