Understanding Your HOA

The information on this page is designed to help those new to a homeowners association (HOA) understand the purpose of an HOA, the terminology that is generally used in HOA materials, and the roles of the various HOA leaders.

  • A Texas HOA is a legal entity that represents the homeowners and their properties, and which governs several kinds of activity and permissions that can occur within that area of land.

  • HOAs provide guidance and oversight for a community’s property-related activity. They also help maintain higher standards of living and property values.

  • Property owners are generally required to be members of the HOA and pay certain dues, assessments, or other fees.

Who’s Who

  • Works in balance with homeowners, board, and management company’s business expectations
  • Problem-solves in the best interest of the homeowner and the HOA
  • Advises and provides administrative, managerial, and operational counsel to the HOA’s board of directors.
  • Accounts for financial activities covered by the Management Agreement.
  • Performs onsite property inspections for compliance with HOA declarations, rules and guidelines.
  • Solicits and evaluates bids for association services.
  • Supervises maintenance activities and contractor performance.
  • Oversees and authorizes payment for goods and services provided to the HOA.
  • Knows and abides by the Texas regulations covering community associations.

  • Maintain the value of the property and a good quality of life for the residential community
  • Govern smoothly
  • Enforce rules
  • Establish and keep the budget

Depending on the management agreement, some of the following responsibilities may be turned over to a managing company:

President

  • Chief executive officer and leader of the association
  • Presides at all meetings of the board and membership
  • Executes legal documents on behalf of the association
  • Sets meeting agendas and controls all meetings
  • Represents the board before the residents
  • May have nominating, if not appointment, responsibility for all committees

Vice President

  • Performs all of the duties of the president in his/her absence
  • Typically shares some of the burden of the president regarding appearances, liaison, public hearings, etc.
  • May be assigned liaison responsibility to specific staff or contractors, and to specific committees

Secretary

  • Prepares and distributes board and membership meeting agendas, minutes, and materials referred to in minutes
  • Maintains minutes on all board meetings
  • Maintains book of resolutions
  • Maintains all official records, including official correspondence, contracts, membership roster, etc.
  • Receives, verifies, and maintains all proxies
  • Attests, by signature, to the legitimacy of certain documents

Treasurer

  • Works with appropriate staff, contractors, and committees to develop and submit annual operating budget for approval
  • Maintains adequate records of all association financial transactions
  • Maintains roster of disbursement of funds, as authorized
  • Prepares period financial reports
  • Arranges, subject to board approval, an independent audit of financial affairs