What written policies should every HOA board have?
By OurHOA · General information · Revised
The core written policies an HOA board should adopt, including collections, records, enforcement, and reserves, with Colorado and Texas required policy rules.
Part of the HOA board handbook: running the board.
Why written policies matter
Governing documents set the big rules. Policies explain how the board applies them day to day. Without written policies, every late payment, records request, and violation gets handled from memory, and owners notice when two similar cases come out differently. A written policy protects the board as much as the owners. It shows that a decision followed a standard adopted in advance rather than a mood. Some states require specific policies. Most do not, but the same handful of topics comes up in every association. This guide lists them, then covers the Colorado and Texas requirements as examples of how specific the law can get.
Colorado's nine required policies
Colorado is the clearest model. C.R.S. 38-33.3-209.5 requires associations to keep accurate accounting records and to adopt policies, procedures, and rules on nine subjects. They are collection of unpaid assessments, conflicts of interest involving board members, conduct of meetings, enforcement of covenants and rules including notice and hearing procedures and the fine schedule, inspection and copying of records by owners, investment of reserve funds, procedures for adopting and amending policies and rules, procedures for addressing disputes between the association and owners, and a reserve study policy stating whether the association has a reserve study, whether there is a funding plan, and whether the study is based on a physical and financial analysis. The conflict of interest policy has minimum contents set by the statute, and the collection policy must follow detailed delinquency steps in the same section. Colorado's Division of Real Estate calls these the nine responsible governance policies. Even outside Colorado, the list is a good table of contents for a policy manual.
Texas policies that must be adopted or recorded
Texas Property Code chapter 209 takes a different approach, requiring specific policies and in several cases recording them in the county real property records. Under section 209.005(i), the board must adopt a records production and copying policy that sets what the association charges for producing records, and that policy must be recorded as a dedicatory instrument. The association cannot charge owners for records production until it is recorded. Under section 209.005(m), an association with more than 14 lots must adopt a document retention policy that meets minimum periods, such as permanent retention of the certificate of formation, bylaws, covenants, and amendments, seven years for financial records and minutes, and five years for current owners' account records. Section 209.0062 requires associations with more than 14 lots to adopt alternative payment schedule guidelines for delinquent owners and file them in the real property records of each county where the subdivision is located. Section 209.0063 sets the order in which owner payments are applied, starting with delinquent assessments and ending with fines and other amounts, so your collection policy has to follow it. Chapter 209 has other requirements too. Texas boards should review the full chapter with counsel.
The core manual for any state
If your state does not prescribe a list, start with these. A collection policy covering due dates, grace periods, late fees, reminder steps, payment plans, and when an account goes to an attorney. An enforcement and fine policy covering how violations are reported, notice, the owner's chance to be heard, the fine schedule, and appeals. A records inspection policy covering how to request records, response times, what is withheld as confidential, and copy costs. A conflict of interest policy covering disclosure, recusal, and related-party contracts. A reserve funding and investment policy covering how often the reserve study is updated, the funding target, where reserve money is held, and who can move it. A rules adoption policy covering notice to owners, comment periods, and how rules are published. A dispute resolution policy covering how owners raise complaints and whether the association offers mediation. Separate guides cover collection policies, records retention, and the difference between a board resolution and a rule.
Internal policies owners rarely see
Some of the most useful policies are about how the board runs itself. A spending authority policy sets how much an officer or manager can approve without a board vote and how many signatures a payment needs. A check signing and bank access policy says who holds online banking credentials and requires two people to approve transfers above a set amount. A communications policy says who speaks for the association, what goes in the newsletter, and how owner emails are answered. An emergency policy says who can authorize emergency repairs between meetings and how the board ratifies that spending afterward. An architectural review policy explains how applications are submitted, reviewed, and decided within the deadline your documents set. These reduce the day-to-day friction that makes small boards burn out.
How to adopt a policy properly
Check your governing documents first. A policy cannot contradict the declaration or bylaws, and some documents require owner approval or notice before certain rules take effect. Draft the policy in plain language. Have counsel review anything that touches collections, fines, or foreclosure, because mistakes there cost money. Put the policy on an open meeting agenda and adopt it by resolution. If state law requires owner notice or a comment period for rules, follow it. If the policy must be recorded, as in Texas, record it before relying on it. Send owners a copy or post it where they can find it. California, for example, requires an annual policy statement under Civil Code section 5310 that summarizes the collection, enforcement, and dispute resolution policies, among other items.
Keep the manual current
Number each policy, date it, and note the resolution that adopted it. Keep one current version in the association's records and mark superseded versions clearly. Review the whole manual every year or two, and whenever your state legislature changes HOA law, which in some states happens almost every session. When a policy is replaced, adopt the new one by resolution just like the original. A one-page index listing every policy, its adoption date, and where owners can get a copy saves new directors hours. Check your governing documents and state law before adopting or relying on any policy described here.
Sources
These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.
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