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In an HOA, there is often confusion about who is responsible for what between the Board and Management Company. While each association and their contract with a management company is unique, we have gathered some general guidelines to help clarify these roles.

The HOA and its Board are responsible for the overall operations of the community. The Board makes all decisions regarding rules and they are responsible for maintaining the value of the property through maintenance, collecting dues, paying bills, and filing taxes.

The confusion often comes into play because Boards delegate certain responsibilities and administrative tasks to management companies. In a nutshell, the management company carries out the directives of the Board as their administrative arm. Management companies do not set policy.

Full-service and financial-only management contracts can further add to misinterpretation of responsibilities of a management company. A full-service contract will include things like general maintenance of the association’s common areas, financial and administrative duties such as paying the bills and collecting dues, and tasks such as facilitating meetings and taking/distributing notes and notifications to residents.

A financial-only contract for management is just that. The management company takes care of things relating to finances such as paying the bills, managing dues and collections, and management of the reserve fund.

With many different options and the unique needs of each association, it’s easy to see why questions arise regarding who is doing what!