New Board Member Checklist

Use this checklist in your first two or three months on the board to gather the right documents, learn the money, meet the right people and get the key dates on your calendar. For the reasoning behind each step, follow the New Board Member Guide.

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Documents to request

• Governing documents: the CC&Rs or declaration, bylaws, articles of incorporation and rules. See HOA Governing Documents Explained.
• The current budget, the latest financial statements and the last year-end statement. See how to read an HOA financial report.
• The most recent reserve study. See Understanding HOA Reserve Studies.
• All insurance policies, or a summary or certificates of insurance from the agent. See The 5 Core HOA Insurance Policies.
• Board meeting and annual meeting minutes for the past 12 to 24 months.
• Every active contract, including landscaping, pool, elevator, security and the management contract if you have a manager.
• The current delinquency report.
• A summary of pending legal matters, insurance claims and unresolved violations.
• Records scattered on former directors’ home computers: collecting them is the first project. See Maintaining your HOA records.

Money to understand

• Which bank accounts are operating accounts and which are reserve accounts, and that the two are kept separate.
• Who can sign checks and transfer money, what approval each transfer needs and whether outgoing directors have been removed as signers.
• How assessments are set, when they can change and whether your governing documents or state law limit increases without an owner vote. See regular and special assessments.
• How and how often the board reviews the finances, and who prepares the reports.
• Recent bank reconciliations, and actual income and expenses against the budget.
• Delinquencies: who owes, how much, for how long and what collection steps have been taken.
• Any recorded liens, and whether the association follows its own collection policy.
• Who prepares the tax returns (often IRS Form 1120-H) and when they were last filed.
• When an outside accountant last reviewed or audited the books.

Budget and reserves to review

• Three years of actual expenses, to spot rising costs like insurance, utilities and landscaping.
• The reserve study’s recommended contribution compared with what the budget puts in.
• Major components due for replacement in the next five years, and whether the money is there. See what a reserve specialist does.

Insurance and contracts

• Each policy’s renewal date, limits and deductible: property, general liability, directors and officers, and fidelity or crime coverage.
• Whether property limits reflect current rebuilding costs.
• The management contract’s term, termination clause and what the base fee includes. See HOA management contracts.
• Vendor contracts that renew automatically, and when notice to cancel is due.
• A certificate of insurance from every vendor who works on the property.

Maintenance to walk

• Walk the property with the manager or a long-serving director, governing documents in hand.
• What the association maintains: roofs, exteriors, streets, drainage, irrigation, pools, gates, lighting, elevators and shared utility lines.
• Recurring work: landscaping, gutters, pool, pest control, fire system testing and janitorial.
• Seasonal tasks: storm drains, snow removal or a spring cleanup.
• A log of owner requests with dates received and closed.
• Warranties and when each one ends.

People to meet

• Your fellow directors and officers, and who holds which role.
• The community manager or management company contact, if you have one.
• Key vendors, such as landscaping, maintenance and janitorial.
• The association’s attorney.
• The insurance agent or broker.
• The accountant or CPA.

Dates to put on your calendar

• Board meetings for the rest of the year, published to owners.
• Budget season: when the draft is due, when the board adopts it and when it must go to owners. See Planning Your HOA Budget.
• The annual meeting and election. See How to Conduct Effective HOA Elections.
• The insurance renewal date.
• The next reserve study update.
• The tax filing deadline.
• Due dates for any disclosures or notices the association must send to owners.
• After every election: turn this list into a one-page annual calendar, with a month beside each task.

Meetings to run

• A written agenda for every meeting, sent ahead of time with the notice.
• A consistent order: call to order, minutes, financial report, manager’s report, old and new business, owner comments. See how to run HOA board meetings smoothly.
• Owner comments at a set time, with the same limit for everyone, often before votes.
• Minutes that record motions and votes, not everything said.

Owner updates to send

• A newsletter or email on a fixed schedule, monthly or quarterly.
• Meeting dates, project updates, rule reminders and phone numbers for the manager and after-hours emergencies.
• Decisions in a neutral tone with the reason, especially assessment increases.
• Where owners can find governing documents, forms and minutes.
• Official notices by any method your state or governing documents require. A newsletter may not count.

Ground rules

• The board makes decisions together at properly noticed meetings. Individual directors do not decide alone.
• Legal advice, personnel issues and owner discipline go to executive session where your state allows it, and stay confidential.
• Disclose any conflict of interest before the board takes up the matter.
• Treat owners consistently: the same rules and the same process for everyone.
• Outside a true emergency, take one more meeting to read the bids before approving a large contract or expense.

You can find more checklists and worksheets on the HOA Board Tools page, and our HOA board member guides cover the board’s role in more depth.

In California

• Every month, the board reviews the operating and reserve account reconciliations, actual revenues and expenses compared with the budget, the latest bank statements, income and expense statements, the check register, the general ledger and the delinquent assessment report (Civil Code section 5500).
• The annual budget report goes out 30 to 90 days before the end of the fiscal year (Civil Code section 5300).
• Reserve study: a visual inspection of the accessible major components at least once every three years when their replacement value is at least half of the association’s gross budget, not counting reserves. The board must review the study every year (Civil Code section 5550).
• A review of the financial statement by a California licensed accountant for any fiscal year in which gross income exceeds $75,000, sent to members within 120 days after the fiscal year ends (Civil Code section 5305).
• At least four days’ notice of a board meeting, with the agenda included. Emergency and executive-session-only meetings follow different notice rules (Civil Code section 4920).
• The board generally may not discuss or act on an item that was not on the agenda, with narrow exceptions such as emergencies (Civil Code section 4930).
• Crime or fidelity coverage for directors, officers and employees at least equal to reserves plus three months of assessments, including computer and funds transfer fraud and extending to any management company (Civil Code section 5806).

The Law Behind This Checklist: Civil Code sections 4920 · 4930 · 5300 · 5305 · 5500 · 5550 · 5806

This checklist is general educational information, not legal or financial advice. Laws vary by state and your association’s governing documents control many of these questions, so check with your association’s attorney or another qualified professional about your situation.