Governance 102
Governance 102: What the HOA Board Actually Does
Understanding the Board’s powers, duties, and limits helps every homeowner know what decisions the Board can make — and by what authority. The Silos Board operates under Texas law and the community’s governing documents, not personal opinion or popularity.
1. Where the Board’s Authority Comes From
The Board’s legal authority flows from several binding sources:
- Texas Property Code Chapters 202 & 209: Define HOA powers, due process, and owner protections.
- Master Covenant (Article 3): Establishes the Association and vests management authority in the Board.
- Bylaws / Community Manual (Articles VI–VII): Outline how the Board governs, elects officers, and exercises its powers and duties.
2. Powers of the Board
The Board acts collectively on behalf of the Association — not as individuals — and only within the scope allowed by the governing documents and law. These include:
| Power | What It Means | Source |
|---|---|---|
| Adopt & enforce rules | Implement and enforce community standards for property maintenance, amenities, and conduct. | Master Covenant §5.14; Bylaws Art VI |
| Levy & collect assessments | Fund operations, maintenance, and reserves through assessments; unpaid assessments become liens. | Master Covenant Art 5 |
| Approve annual budgets | Plan yearly expenses and determine assessments necessary for community services. | Bylaws §7.8 (Treasurer Duties) |
| Maintain common areas | Repair, insure, and improve shared property and amenities. | Master Covenant §3.27 |
| Enter into contracts | Hire vendors, insurers, and professionals to operate the Association efficiently. | Bylaws Art VI |
| Appoint officers & committees | Delegate administrative tasks through officers or advisory committees. | Bylaws Art VII–VIII |
| Enforce covenants | Address violations through notice, hearing, and fines per the Fine & Enforcement Policy. | Master Covenant §5.14; Bylaws Attachment 3 |
3. Duties of the Board
- Fiduciary Duty: Act in the best interest of all members, exercising care, loyalty, and good faith.
- Duty of Care: Make informed, reasonable decisions based on facts and professional advice.
- Duty of Loyalty: Avoid conflicts of interest and self-dealing.
- Duty to Comply: Follow the Master Covenant, Bylaws, and state law in all decisions.
- Recordkeeping: Maintain accurate minutes, financials, and corporate documents for member inspection (Bylaws Art IX).
4. What the Board Does Not Do
Common misconceptions clarified:
- The Board does not make up rules arbitrarily — all policies must align with the Covenants and Texas law.
- Board members are not paid employees; they are volunteers serving under fiduciary duty.
- The Board cannot spend funds beyond the approved budget or outside Association purposes.
- The Board does not control private property beyond what’s outlined in the recorded restrictions.
5. Checks, Transparency & Accountability
The Board’s actions are governed by open-meeting and record-keeping requirements:
- Meetings and minutes are open for member review (Bylaws Art V §5.12).
- Budgets and assessments must be adopted in accordance with the Covenant and law.
- Records are accessible for inspection (Bylaws Art IX).
- Board and officer indemnification applies only for good-faith actions — not willful misconduct (Bylaws Art XIII).
6. In Plain Terms
The Board’s role is not to control the community — it is to manage the shared property and obligations that every homeowner owns together. When it enforces rules, adopts budgets, or maintains amenities, it is carrying out the duties set forth in the community’s legal framework, not personal preference.
7. Why This Matters During Elections
Serving on the Board means assuming fiduciary responsibility, learning the governing documents, and working as a team within defined authority. Understanding these limits ensures transparency, prevents misinformation, and supports effective self-governance.
“Governance 102” is part of the Silos Community’s educational series on HOA leadership and homeowner rights.