In this tip, we hash out recent comments by one of HOAleader.com's experts about an HOA president who was frustrating and turning off fellow board members: "He thinks he's a corporate CEO, and that's not what an HOA president is."
There's a fine line between the role of an HOA president and a for-profit corporate CEO. Understanding the nuances will help you simplify HOA governance, and it can make it easier to retain and grow your leadership team.
Your first step in knowing the role of your president—and the role of each member of your leadership team, for that matter—is your governing documents. Whether it's your declaration, your CC&Rs, or your bylaws, those documents often spell out the duties and responsibilities of
directors and each corporate officer.
Documents sometimes include language that muddies the waters. At the same time, in the corporate world, roles can also be blurred, making it even more unhelpful to think of your condo/HOA president as
your community's CEO.
"I'm careful about this distinction," explains Edward Hoffman Jr., the founder of Hoffman Law LLC, a two-office law firm based in Pennsylvania, who has represented community associations for more than 21
years.
"Usually the CEO, if it's the founder, is called the founder and the president of the company—but those are corporate roles," he adds. "Here's the rub. If there's a board of directors, the CEO often reports to the board. The CEO can
also be the president of a corporate board of directors.
"And in the community association world, sometimes in a giant condo or HOA community, there's a general manager who gets hired," notes Hoffman. "They're given the title of general
manager/CEO. So to some extent, titles don't really matter."
Carolina Sznajderman Sheir, a partner at Eisinger Law in Hollywood, Fla., which represents 600-700 associations throughout the state, who's board certified in condo and planned
development law by the Florida Bar, has also seen situations and documents that can create confusion. "When you look at some bylaws, they'll often say what the position of the president entails as a ‘CEO.' Or they may not say CEO at all."