Members of our community association board have a big responsibility, and they have the legal authority to carry out their roles. Where do they get this authority?
First, most states have statutes—such as a condominium act or homeowner association act—that legally empower elected volunteer community association boards to act on behalf of all owners collectively. Also, our association is subject to the state’s nonprofit corporation code, which confers on the board the authority to act on the corporation’s behalf.
Second, the association’s governing documents—such as the declaration; bylaws; and covenants, conditions and restrictions—which are recognized by the state as binding documents, bestow legal authority on the board and define the scope of that authority.
On the flip side, however, the same statutes and documents that give boards legal authority to levy assessments and make rules, also create an obligation for elected board members to act responsibly.