The Board is charged with the ultimate responsibility and authority for operating the community association on behalf of all the owners. The Board is to set policies, standards, procedures, programs and budgets for the association. The Board may implement its own decisions – or delegate implementation to a manager, or an independent contractor.

The Board has fiduciary relationship to the community association. Its fiduciary duty requires directors to act in the best interests and for the benefit of the corporation, thus the community as a whole.

The fiduciary duty has two components. The members are required to avoid conflicts of interest and acting out of self-interest. The Board is also required to act as reasonable people in managing the association’s affairs. It is the Board that is ultimately responsible for the management of the association. The Board can direct or empower the manager to take certain actions on behalf of the community association. However, the Board is still responsible to the owners.

Many courts apply the business judgment rule to a Board’s actions. If a Board has exercised reasonable business judgment in making a decision, the court will generally not consider the Board negligent in its fiduciary duty.

The Board members responsibilities, but not limited to the following:

• Care, maintenance and enhancement of the physical property, common areas, and facilities
• Management of the community finances and developing reserve funds
• Risk management, including obtaining insurance
• Establishment, enforcement, and interpretation of rules and regulations
• Human resources management of employees and volunteers
• Preservation and promotion of community harmony
• Exercise sound business judgment and follow established management practices
• Understand and follow the association’s governing documents and become educated with respect to applicable state and local laws
• Collect all monies due from owners and non-owner residents
• Devise appropriate and reasonable arrangements when needed.
• Initiate foreclosure proceedings only as a measure of last resort
• Provide a process that residents can use to appeal decisions affecting their non-routine financial responsibilities or property rights-where permitted by law and the governing association’s governing documents.
• Fulfill their fiduciary duties to the community and exercise discretion in a manner they believe to be in the best interests of the community
• Exercise sound business judgment and follow established management practices
• Balance the needs and obligations of the community as a whole, with those of individual owners and non-owners