The HOA will be governed by a board of directors.
Initially the board is composed of developer-appointed members, in order to maintain the character of the community that the developer has for it. As the percentage of ownership shifts from the developer toward owners, the corresponding percentage changes from developer-appointed members to homeowners elected at an annual meeting, and ultimately the board will consist solely of homeowner-elected members. Usually the board (or parts of it) will be elected at an annual meeting of the homeowners, as specified in the Bylaws. In order to avoid an owner of multiple lots (who likely own the lots for resale or rental property) controlling the HOA’s operation (to the detriment of those owners who only own a single lot or two contiguous lots as a current or future residence or vacation home), the Bylaws may limit all owners (regardless of the number of lots owned) to one or two votes per owner.
Depending on the state, board meetings may be required to be open to the public, excepting instances where a board may enter into “executive session” for discussion on confidential matters (e.g. discussions with its attorney on an upcoming lawsuit).
The board of directors makes decisions regarding the HOA, including management of the HOA’s finances, protecting the HOA’s real and intangible assets (generally the amenities provided which were the basis for inducing people to purchase lots), and enforcing the governing documents.[20] Boards of directors have a fiduciary duty to the property owners; violation of that duty may result in liability for individual directors, and as such the HOA will often adopt an ethics code for the board members to ensure they act ethically and in accordance with their responsibilities.[20] To gain a clear understanding of the responsibilities of the HOA board, community members need to read their association’s CC&Rs, Articles of Incorporation and Bylaws, and other rules.[21][22]