Like other non-profit organizations, such as the YMCA, the HOA entity is governed by a Board of Directors (BOD).
Initially, and during the majority of the construction development of the community, the board is composed of developer-appointed members. These members seek to maintain the vision and character of the community that the developer has envisioned for the project and any regulations imposed by governing bodies during the community entitlement process. As the percentage of ownership shifts from the developer toward homeowners over time, the developer-appointed member positions will transition to elected resident homeowners. Ultimately this Board will consist solely of homeowner-elected members as the developer finishes the build-out of the community.
State law currently mandates that once 75% of the homes within the Community are sold, the transfer of the HOA leadership begins and 1/3 of the Board Members must be homeowners and elected by the Membership.
The BOD is responsible and solely controls the decision making regarding the HOA, including management of the HOA’s finances, operation of day-to-day activities and protecting the HOA’s real and intangible assets (generally by insuring and maintaining the amenities that are constructed and dedicated/donated by the developer) including legal liability and risk management.
The BOD also oversees the Architectural Control of the community and enforcing the governing documents; including the CC&Rs, Architectural Guidelines, Articles of Incorporation and Bylaws, and other various rules.