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An HOA board position is often described as “the hardest volunteer job you’ll ever love.” Board members devote hours to budgets, landscaping contracts, and homeowner questions—but does that time buy them a break on assessments? In nearly every community, the answer is no: board members are responsible for payment of dues, fees, and special assessments as every other homeowner unless your governing documents explicitly say otherwise.
Below, we’ll explain why paying dues is both a legal requirement and an ethical best practice, what happens if a Board of Directors member falls behind, and how a professional firm such as Kuester Management Group keeps collections fair and transparent as a leading provider of Professional HOA management in Charlotte, Huntersville NC, Wilmington NC, Myrtle Beach SC, and Fort Mill SC.
Why Board of Directors Members Still Write a Check Each Quarter
Board service is a volunteer civic duty for a nonprofit organization, not a paid position that comes with special perks or opportunities for personal gain. Core governing documents—your Covenants, Conditions & Restrictions (CC&Rs), bylaws, and annual budget—treat all owners equally because:
- Shared benefit = shared cost. Membership dues fund insurance, landscaping, streetlights, and reserves that every owner, including directors, use daily.
- Conflict-of-interest avoidance. Waiving fees for directors introduces bias into financial management decisions (“If we raise dues, do we raise them on ourselves or only on neighbors?”).
- State statutes often require it. Many states prohibit preferential treatment or special perks for directors unless homeowners vote to amend governing documents.
Unless your CC&Rs specify otherwise, directors must pay membership dues in full and on time.
Legal & Ethical Foundations
There are also several legal and ethical principles that guide how HOA Board of Directors must conduct day operations, particularly when it comes to financial fairness and equal treatment.
- Duty of Loyalty — The entire board must act in the community association’s best interest, not line their own pocketbooks.
- Duty of Obedience — Boards must follow the association’s governing corporate documents. If the CC&Rs set an annual assessment, the board can’t arbitrarily waive it for themselves.
- State HOA Acts — Several states, including North Carolina and South Carolina, treat unequal fee structures as a breach of fiduciary duty.
Bottom line: providing special financial treatment to the community association Board without clear authorization can expose the members—and individual directors—to legal claims from other owners.
Consequences When a Director Doesn’t Pay Membership Dues
Being on the board does not shield a delinquent HOA director from the same collection timeline as any owner. Some bylaw violations can include:
- Late fees and interest kick in at the intervals defined by policy.
- Loss of voting rights or suspension from the board may occur once delinquency thresholds are reached.
- Demand letters, liens, or foreclosure remain legal options if annual membership payment is ignored.
Most community association bylaws also require a director to remain in “good standing.” If dues aren’t current, the director may be asked to resign or can be removed by a vote at a board meeting or by the membership.
Are There Any Exceptions?
In most cases, HOA board members are expected to pay membership dues like any other homeowner. However, there are a few limited exceptions—and even then, they must be clearly defined in the governing corporate documents or approved by the board membership. Here’s what those exceptions might look like:
- Expense Reimbursement
This is not considered a dues waiver. If a board member pays out of pocket for HOA-related expenses—like postage, administrative costs, printer ink, or mileage for site visits—they can be reimbursed with proper documentation. This works much like employee expense reimbursement in a business setting. - Pre-Approved Stipend for Duties
While not common, some exempt organizations offer small stipends to board members who take on extensive duties. This must be authorized in the HOA’s bylaws or approved by a vote of the homeowners. Any monthly payments like this are typically reported as taxable income. - Discount or Dues Waiver
This is very rare and must be explicitly written into the CC&Rs or bylaws. Without clear, written authorization, offering financial breaks to board members could result in legal violations related to fiduciary duty, raise ethical concerns, and even breach state laws.
What this means at the end of the day is that unless your HOA’s corporate governing documents specifically allow it, board members should not receive special perks related to membership dues.
How Kuester Management Group Keeps Things Fair
Kuester’s role starts with clear accounting and ends with stronger community trust.
Transparent Financial Management
- We invoice, track, and report every assessment so homeowners (and board members) see an identical ledger.
- Secure owner portals for online payments let everyone verify payment status 24/7.
Governance & Compliance Guidance
- Kuester reviews bylaws and state statutes to confirm the board president and all directors understand the executive committee’s obligations.
- We coach nonprofit boards on handling director delinquency—grace periods, hearing procedures, potential removal—while keeping the process fair and legal.
Professional, Impartial Collections
- We handle financial management and financial statements. Payment reminders and late-fee notices come from us, removing awkward peer-to-peer pressure.
- For chronic delinquency, we coordinate with attorneys and follow the collection policy step-by-step, without favoritism.
Integrated Service Coverage
Looking for professional HOA management services in the Carolinas? Kuester delivers the same transparent processes across each market and nonprofit corporation, adapting to local statutes but never compromising on fairness.
Fairness Matters: Upholding Trust Through Equal Financial Commitments
HOA board service is an important time commitment to a nonprofit charitable organization—but it doesn’t come with special perks or financial privileges. Like every other homeowner, board members are expected to pay dues on time and in full.
Partnering with a professional HOA management company like Kuester Management Group helps your community remain above board. We support fair and transparent dues collection, ensure compliance with governing documents, and provide the guidance boards need to navigate financial governance with integrity. Contact our team today to learn more about how we can help your nonprofit organization.
FAQs
Do HOA board members get compensated or receive discounts?
Typically, no—board members are volunteers and must membership pay dues like any other homeowner unless the governing documents explicitly allow otherwise.
Can board members be removed for not paying their dues?
Yes, delinquent board members may lose voting rights or even be removed, depending on the HOA’s governing documents and state laws.
Are there any circumstances where board members don’t have to pay HOA fees?
Only in rare cases where the governing documents or a homeowner-approved vote explicitly allow for fee waivers.
Who enforces dues collection for HOA board members?
The HOA board collectively enforces dues but working with a management company helps ensure impartial and consistent enforcement.
How can an HOA management company like Kuester ensure fair financial policies?
Kuester provides expert financial oversight, enforces consistent dues collection, and ensures compliance with bylaws and state regulations.
