HOA Components

Former HOA President on Managing an HOA for Large Community

In response to your request about recommended and state-law required elements for managing an HOA, I submit the following as a former HOA president of a 376 home community.

Condo/HOAs are the first line of government for those that own property managed by an association and registered with the state of Washington.

The Board of Directors must adhere to a set of laws in the state of Washington for the management of the common property (link below).

Small HOAs can often manage with less, but if we need an HOA for our 614-home community, these are some of the items an HOA must manage:

• HOA rule adherence and conflict management
• Finances, reports, bank account, annual statements to the membership, etc.
• Annual Budget
• Contractors for landscaping, repairs to buildings, streets, etc.
• Reserve funds for substantial property assets: fencing, painting, roofing, private streets, etc.
• Insurance for Common Property
• Collections and Liens
• Attorneys (if needed) for collections, suits against homeowners that refuse to abide by covenants they signed upon purchase of property, etc.
• Special Assessments which may not be covered by reserve funds (no one likes unexpected large assessments for roofing, painting, streets, curbing, irrigation repair and replacement, etc.)
• Errors & Omissions insurance to protect Board members from being personally liable in lawsuits initiated by HOA members over disagreements
• Architectural Committee rule adherence 
• Approval and denial of arch applications
• Annual meetings
• Mailings of dues statements, collections, and accounting of funds
• Elections of Board members: typically 6 – 8 Board members
• Separate committees to manage architecture, landscaping, budget, legal, etc
• Professional Management company to ensure adherence to state laws

Professional Management company HOA costs nationally run between $10-$20 per unit, per month.

For a comprehensive look at Washington state law pertaining to HOA management and compliance, click link below.

Note: In our current situation with the golf course, they manage and are responsible for these items under our fees.