In your homeowner’s association, you have a set of bylaws as well as rules and regulations, CC&Rs, and other governing documents that dictate how the HOA is set up and how the board of directors within that association should operate.
Everything is there, but sometimes you will require a resolution to address HOA business or share a board decision.
Let’s talk about what an HOA board resolution is, and how you can create one for your own Winston-Salem association.
Defining an HOA Board Resolution
An HOA board resolution is a formal statement created by the board that affects HOA policies and reflects board decisions. Typically, the resolution will state its purpose and the required actions that are to follow. Resolutions are directly connected to the board’s operations.
A board resolution will be:
- Administrative. These are often called procedural resolutions, and they are created to improve internal processes. Board meeting procedures, elections, and changes to architectural applications are examples of administrative resolutions.
- Policy-driven. Policy resolutions are often used to clarify anything that’s unclear in the rules and regulations. A policy resolution might limit pets, address holiday décor within the community, or clarify whether or not certain paint colors are permitted.
- Special and Specific. A special resolution is the result of a specific situation that is not already addressed in the bylaws or the rules and regulations or the CC&Rs. Electric vehicle charging stations, for example, might need a special resolution because there were no electric cars when the corporate governing documents were written.
Resolutions must validate and support the work of the board and the commitments of the homeowners within the community.
How to Create a Board Resolution
You cannot write and pass a resolution if it violates something that’s already in place. Make sure the board has the authority to address whatever the resolution addresses, and make sure you have buy-in from the community.
Here are your immediate steps:
- Conduct your due diligence. Check the local and state laws as well as the rules already in writing in your bylaws and other governing documents. Consult with an attorney or an HOA management company. You need to be certain that you have the authority to pass this resolution.
- Discuss the proposed resolution in detail with the board and decide how to frame it for your community association. How will it be enforced and explained? Why is it necessary? These are the things that you’ll need to address before the board moves forward.
- Write the resolution in a way that reflects the board’s authority to pass it. It must be written formally and in a standard format.
- Present the resolution to owners. It’s not necessarily required for them to approve it. The board will ultimately vote on whether to pass the resolution. But, you want to communicate with your homeowners and keep them engaged. Let them know it’s being considered by the board and share the language of the resolution.
- Vote on the resolution.
- Once the resolution passes, share it with your homeowners and include it in the governing documents.
This does not have to be a complicated process, but it does have to be complete. It must be lawfully carried out and taken seriously by the HOA board and the entire association.
If you need help with a board resolution or you’re wondering whether one is necessary, reach out for some additional help. If you have questions about Winston-Salem association management, please contact us at Capstone Realty Consultants.