In the world of homeowners associations, there are certain committees that handle specific parts of upholding the community. From architecture committees to landscaping, HOAs have the opportunity to elect members to these groups and help run the different arms of the community to keep everything running smoothly.
However, HOAs as a whole need to know how to work with these committees so there’s an even relationship that’s weighed out in the daily operations of a community. Miscommunication and disagreements are normal, but being able to understand everyone’s roles will help to keep a solid relationship within the different arms of an association
To better understand how HOAs should work with independent committees, it’s better to know the legally binding reach that HOAs have.
When a committee is formed as a separate committee and has authoritative power, it means they have a separate charter that wants to function independently. There are governing documents in place that can outline if an HOA board has the authority to overrule a committee in its decision making. In most cases, an HOA has the upper hand to overrule, but independent committees can pursue their own path of authority.
In most cases, a committee is not fully independent from an HOA board. But in some cases, a committee can be completely separate and elect its own membership instead of the board. When a board elects the members of a committee, it offers them the opportunity to hold and keep the power in decision making.
In some states, like California, all committee members serve the board, which has oversight and acts as the governing body.
But a truly independent committee, while rare, can still make an attempt to operate truly on its own. To do this, a committee can consult a legal contact to clarify the board’s authority in certain situations and go over governing documents. These documents will allow boards to remove people from committees outright instead of having to go through an HOA board.
HOA Insurance Coverage
Another element to committees and HOA’s working together is how HOA insurance coverage is impacted. Committees may feel that the HOA in which they’re connected to is overreaching on certain decisions, which would ignite possible legal issues.
For HOA’s, having HOA insurance coverage will help to protect them in the middle of litigation. HOA insurance coverage for Directors & Officers is a layer of protection to keep associations financially protected while things like governing documents are researched.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.