The Illinois House is proposing new legislation that would require HOA boards to undergo regular training. If enacted, what does this entail, and how can your board of directors prepare for it?
What is HOA Board Training?
HOA board training is a structured workshop or educational program. For HOA board members, these lessons aim to equip them with the knowledge and skills to govern the community properly. Some of the topics that may be covered include HOA finances, legal compliance, rule enforcement, meeting facilitation, and other fiduciary duties. Finishing training equips your volunteer board members to lead the community efficiently and with accountability.
What are HOA Board Training Requirements in Illinois?
The Illinois House of Representatives recently introduced legislation currently called HB4338. If enacted, it would require every board member of HOAs, COAs, and other common interest community associations to complete HOA board training. More specifically, they would need to complete a certified training program within a year of their appointment.
Some of the points the program would cover include:
- The HOA board’s fiduciary duties and how they can avoid conflicts of interest
- Handling HOA finances and complying with transparency requirements
- Homeowners’ rights
- Code of ethics and code of conduct
- Proper rules enforcement.
What HOA Board Member Training Should Include
When looking for professional HOA board training programs, check whether they cover specific essential skills and knowledge. Here are some of those:
Fiduciary Duties
A well-rounded HOA board member training program should first inform and clarify what roles they have. Included are HOA responsibilities and how boards can stay transparent and avoid conflicts of interest. Having this as part of the training helps lay the foundation for future lessons and workshops on governing the association.
How to Handle Finances
Board members don’t need to be certified accountants to manage the association’s finances. However, they still need some knowledge to properly handle the HOA’s budget and accounts. At the very least, they need to know how to read balance sheets, create reports, understand what reserve studies say, and recognize any red flags in income reports. Fortunately, good HOA board training programs provide the basics needed to perform these duties.
Legal Literacy
Board decisions should be consistent with the law and the HOA’s governing documents. Through HOA board training, directors receive instruction on the HOA laws and regulations they need to know. It also covers how to read legal and governing documents and identify the laws and regulations that may apply in certain situations. Lessons also help board members easily spot whether a given action or decision may conflict with the law.
Resident Communications
HOA board member education usually also includes training for directors on how to communicate effectively with other board members and homeowners. Here, they can learn how to respond appropriately to requests, create announcements, send notifications, and handle disputes civilly.
Conflict Resolution
Part of the training for board members is how to properly handle conflicts within the HOA. Through education, they would have a guide on how to have difficult conversations about running issues in the community. Additionally, it would help them stay more neutral about things by allowing them to hear each party out.
Facilitating Meetings
HOA board members should also know how to facilitate meetings. Professional training for board members usually includes meeting management, including agenda creation and parliamentary procedure. It also teaches them how to track and document meeting minutes and properly end an HOA meeting with action items.
Making Strategies and Long-Term Plans
Board members need to look beyond the daily operations of th e association. They must also consider the community’s goals and how they can get there. HOA board member training will usually teach the directors how to do so properly. Some such lessons include managing and tracking reserve funds and handling HOA rules as the community evolves and ages, among others.
Understand insurance.
Many people may overlook it, but insurance is crucial for any homeowners’ association. To ensure your HOA is protected, the HOA board needs to understand insurance mechanisms and how to find the right coverage for your community. They need to know how to review insurance policies and how to engage with brokers and insurers to find the best options for your HOA.
Resources for HOA Board Member Training
There are many institutions and resource
s that could provide training for the HOA board of directors. Here are some that can help with board member education.
Professional Illinois Condo Board Training Programs
The most reliable way to teach the HOA board how to govern a community is through a formal training program. These are usually offered and organized by professionals.
Some programs under this may include the following:
- In-Person Workshops by Community Association Institute (CAI) Illinois: This is the most reliable source of workshops for HOA board members. For comprehensive HOA board training workshops, your HOA can check out the training offered by the CAI in your state. Getting their training best fits boards that are part of larger or more complex community associations. One of their more popular programme is the Board Leadership Development Workshop.
- Online CAI Programs: Many board members lead busy lives, making scheduling in-person training difficult. Luckily, CAI also offers workshops and certifications that can be completed online.
- HOA Management Companies: Many community management companies can organize board member workshops to prepare them to govern the HOA. Associations that are already working with such firms can get this as part of board onboarding.
Mentorship and In-House Training
Experience can be a good source of information for HOA board members. If there are directors who have been at the helm for a long time, they can offer to teach newer board members about governance. This can be done either through lessons or by creating a mentorship program between older and newer board members.
HOA Resources
There are many resources online to complement the formal training you can get from professional workshops. Organizations like CAI have banks of information that board members can peruse. Additionally, Illinois’ Office of the CCIC Ombudsperson can provide legal sources and explanations that you may need.
Continuing Education
Even though the new Illinois legislation hasn’t been passed yet, its existence underscores the importance of ongoing HOA education. It’s best practice for HOA board members to receive regular training. With these, the board ensures it is equipped with the right skills and knowledge to keep the community running well.
The Forth Group provides HOA management services to communities in Chicago and the surrounding areas. Call us today at (312) 379-0400 or contact us online to get started!
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