An HOA board resolution can help associations make decisions in an organized and enforceable way. These resolutions outline how the board manages a community. They also clarify the responsibilities of both the board and homeowners. Without them, board actions can lack consistency and transparency.
What is an HOA Board Resolution?
A board resolution is a formal written record of a decision made by the board of directors. It provides clear documentation of actions the board intends to take and the authority behind those actions.
Resolutions are an essential part of managing a community because they formalize decisions. They make these decisions official and enforceable.
Board resolutions typically fall into three categories.
1. Administrative Resolutions
An administrative resolution defines the procedures for how the board conducts its business. These include meeting schedules, voting procedures, or committee roles.
For example, an administrative resolution might outline the process for reviewing architectural applications or handling late fee notices.
These resolutions focus on the association’s operations and efficiency.
2. Policy Resolutions
A policy resolution sets the community’s rules or explains how existing rules are enforced. Examples include parking policies, pet restrictions, or noise guidelines.
Policy resolutions provide consistency and fairness within an association. They make it clear how the board will enforce rules. This way, homeowners understand what the association expects of them.
3. Special Resolutions
A special resolution usually addresses the unique issues of an association. It can also cover significant board decisions.
Common examples of these include approving a major construction project, entering into a loan agreement, or adopting a new community-wide service. Boards must carefully draft special resolutions because they often involve larger financial outlays or legal concerns.
The Importance of a Homeowners Association Resolution
Within an association, a resolution holds great importance because it promotes consistency, accountability, and clarity. When the board documents a decision through a resolution, it can reduce confusion among community members.
Additionally, proper documentation can also help protect the board from claims of favoritism. It creates a clear paper trail, reflecting the board’s decisions.
Furthermore, resolutions show that the board acted within its authority or scope. Should a homeowner challenge a decision, or if the case goes to court, resolutions serve as a reference. Without them, a decision may appear arbitrary or invalid.
Finally, resolutions ensure transparency. Homeowners can see how and why decisions are made. This helps build trust between the board and the community.
When is a HOA Board Resolution Required?
A resolution is typically required whenever the board takes a significant action that affects the community or clarifies the application of the governing documents. For example, the association may need to craft a resolution when the board adopts new parking rules, approves a budget, or executes a vendor contract.
Minor day-to-day tasks may not need a formal resolution, as that would significantly slow things down. That said, any decision that has a long-term impact or comes with financial consequences must be formalized with a resolution.
HOA Resolution vs Amendment
It is important to understand the difference between a resolution and an amendment. While the two may seem similar, they serve different purposes.
Simply put, a resolution interprets or enforces existing rules. Meanwhile, an amendment changes the actual governing documents.
For instance, if the board wants to clarify how homeowners must submit architectural requests, a resolution is enough. If the board wants to change the maximum number of pets allowed per household, that would require amending the declaration or bylaws.
Resolutions are flexible and easier to adopt than amendments. Amendments often require homeowner approval, sometimes with a supermajority vote. In Virginia, associations must achieve a two-thirds vote of homeowners to amend the declaration (Section 55.1-1829).
On the other hand, resolutions only require board approval. They don’t need a homeowner vote, but they must always align with state laws and the governing documents.
Board Resolution Format for Homeowners Association
Associations must craft a board resolution in written form using a clear and organized format. This ensures that it is easy to understand and enforce. Using flowery language can often result in misunderstandings.
Here is what to include in a board resolution:
- Purpose. This is the reason behind the resolution.
- Statement of Decision. This should clearly explain the decision of the board.
- Actions. This details the specific steps the board is taking.
- Authority. Reference the governing documents or state laws that give the board the power to act.
- Effective Date. Specify when the resolution takes effect.
Here’s how to draft a board resolution.
1. Check Laws and Governing Documents
Before drafting anything, the board should review state laws and the association’s declaration, bylaws, and rules. This will ensure that the resolution does not conflict with a higher authority.
When in doubt, it is always advisable to consult a legal professional. An attorney with experience in association law is best. That said, many management companies also offer legal assistance, including drafting legal documents.
2. Board Discussion
The board should discuss the issue at an open meeting. This promotes transparency and allows directors to weigh the pros and cons before adopting the resolution. It also gives homeowners a look into how the board makes its decisions, thereby strengthening trust.
3. Seek Input from Homeowners
While not always required, an association can improve compliance and reduce conflicts by seeking feedback from homeowners. Homeowners can point out issues, even identifying some that the board previously did not consider or find.
4. Vote on the Resolution
After drafting and discussing the resolution, the board must vote on it. Typically, the board must get a majority vote from the directors to pass the resolution at a meeting. It is best to check the governing documents to clarify the voting requirements.
5. Notify Homeowners of the Resolution
After adopting the resolution, the board should notify the homeowners. Board members can do this via email, newsletters, or posting on the community website. Giving notice ensures that residents are made aware of the new rule, policy, or procedure.
HOA Board Resolution Template
Here is a sample board resolution:
Download Your HOA Board Resolution Template Here
The Bottom Line
A board resolution is a vital tool when managing a community. It provides clarity, accountability, and consistency in board decisions. By documenting actions in a clear format, the board can protect itself legally. It also ensures homeowners understand the rules.
National Realty Partners is a leading provider of association management services in Virginia. We can assist your board in drafting and enforcing resolutions. Call us today at 703-435-3800 or request a proposal online to get started!
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