3 Simple Ways to Promote Transparency in Your HOA

1 Hold open board meetings and work sessions

Although boards are generally required to hold open meetings when voting on major decisions, some boards try to avoid conflict and arguments by having closed work sessions where homeowners aren't allowed. This may give you peace and quiet in the short term but is likely to be counterproductive in the long run. It's better to conduct most of your sessions with homeowners in attendance so they can feel heard.

In recent years, many boards turned to online meeting platforms out of necessity. Some boards experienced the benefits of convenience and broader attendance and have opted to remain online or hold the meeting in a hybrid format with both online and in-person attendance.

2 Share your HOA meeting minutes

No matter when you schedule board meetings, you'll have residents unable to attend. Others may only be interested in some issues, like the financial reports, and won't want to sit through everything else. Mailing or emailing meeting minutes to all members is an excellent way to share accurate information widely and demonstrate an extra level of transparency. This method is particularly useful if your HOA doesn't have a secure online portal to post financials and minutes.

While email shouldn't replace the important discussions and decisions that occur in open board meetings, it can be useful for keeping homeowners informed.

3 Share HOA financial information early and often

No one likes financial surprises. For some homeowners, an unexpected increase in HOA fees or special assessments may be an annoyance. For others, it can be a challenge to their lifestyle or financial security. Sharing financial information with all homeowners as transparently and frequently as possible can make homeowners feel included and allow them to make constructive suggestions.

Budget creation is a task that should involve special attention to transparency. You need to know what your homeowners' wish list is for their community and ensure they're informed about things you're doing to maintain buildings and grounds and protect their property values. Also, note that some states require HOAs to share their budgets with all homeowners 30 to 90 days before the end of the fiscal year. Check your state requirements to ensure you're compliant.

It can be beneficial to have a financial partner who understands the specific challenges and requirements of your HOA as you strive for transparency. Look for a leader in community association banking and lending that can offer expert service, custom technology and a variety of banking solutions for HOAs and management companies.