When HOA Boards Fail: Understanding Fiduciary Duty and Common Compliance Pitfalls

The Weight of Board Service

Serving on an HOA board is more than attending meetings and voting on paint colors. Board members are **fiduciaries**—they have legal duties to act in the best interests of the association and its members.

What is Fiduciary Duty?

Under California's Davis-Stirling Common Interest Development Act, board members owe three primary duties:

1. Duty of Care

2. Duty of Loyalty

3. Duty of Good Faith

Common Compliance Failures

Failure #1: Selective Enforcement

Boards that enforce rules against some owners but not others face:

**Best Practice:** Document all violations and enforce consistently.

Failure #2: Inadequate Reserve Funding

California requires associations to conduct reserve studies every three years. Boards that:

...may face special assessment crises and personal liability.

Failure #3: Open Meeting Act Violations

The Davis-Stirling Act requires:

Failure #4: Election Irregularities

Association elections must follow strict rules:

Failure #5: Records Access Denials

Members have the right to inspect association records within 10 business days of request. Boards cannot:

Protecting Yourself as a Board Member

Board service is a thankless volunteer job, but it's also a serious legal responsibility. The boards I advise that succeed are those who take their fiduciary duties seriously and invest in professional support.