The Community Association Board of Director’s are Solely Responsible for Their Actions:
First make sure the Board of Directors have their policies in place. The Board of Directors is responsible for the operation of the Association by maintaining, repairing and replacing the necessary common elements. Preserving the property valve should be one of the main objectives of the “master plan”.
The property manager and property management company’s implement the policies supplied by the Board. If the Board does not have a management policy, the manager can supply an initial master plan and the association could then prioritize the plan as necessary. The manager would then assist the Board by delegating maintenance, repairs, replacement and other functions directed by the Board.
The Board can assign tasks and allow for the manager to run the day-to-day association business on behalf of the Board. Although the manager makes the daily decisions, the Board is still ultimately responsible to the association. The Board could never reverse their responsibility by assigning manager duties.
The Board of Directors by State Statute is obligated to use prudent business judgments and has fiduciary duties to act in the best interest of their community. Also, to make good faith decisions, as would an ordinary person would under the same circumstances.
To help make sound decisions, the Board can seek professional opinion. Experts like Community Association Attorney, industrial engineer, state contractor, public accountant and property manager, are all necessary in making responsible board decisions. The Directors’, who apply these high standards of community management, will never be liable for actions or the failure to take action by any of the association members.
If the community contains less than fifty (50) units or has an annual budget (or budgets) of less than $100,000.00, a hired Community Association Manager would not be required by state statute. For seasons stated above, not having a Community Association Manager is not recommended. For more information regarding management duties and how to choose a community association management company, see, “How to Choose the Right Property Management Company“.
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