HOA Budget Basics: What Every Board Should Understand

HOA boards must know the governing documents, manage finances, communicate well, and follow the law.

Governing documents

• Know the declaration/master deed, bylaws, and rules/policies that set community rules and board procedures.

Finances

• Keep a balanced budget, track spending, collect and allocate assessments, and review clear financial reports.

Communication

• Inform homeowners about decisions and events, welcome feedback, and use newsletters, meetings, and social events to stay connected.

Legal compliance

• Understand local, state, and federal laws affecting the HOA and the roles of board

Roles of Board Members

Know each board member’s duties for good teamwork. Common roles:

• President — Runs meetings, manages operations, and speaks for the board.

• Vice President — Assists the president and leads committees.

• Treasurer — Handles finances and manages the budget.