The Importance of Transparency in HOA Operations and Decision-Making: Insights from an Experienced HOA Lawyer

As a homeowner in a homeowner association (HOA), it is important to understand the importance of transparency in the operations and decision-making of the HOA. Transparency helps members access information and understand how decisions are made. Here are some reasons why transparency is important in HOA operations and decision-making.

Promotes Trust and Accountability
Transparency can promote trust and accountability between the HOA board and its members. When the board is open about its operations and decision-making, it may build trust with the members. This trust can encourage members to participate in the decision-making process. It can also help members understand how and why decisions are made.

Encourages Member Participation
Transparency in HOA operations and decision-making can encourage member participation. When the board shares information consistently, members may feel more comfortable sharing their opinions and concerns. This feedback can help the board make informed decisions that reflect the needs and desires of the community. It may also create a sense of ownership and responsibility among the members.

Helps Reduce Legal Disputes
Transparency in HOA operations and decision-making may help reduce disputes. When the board follows the governing documents and applicable California law (including the Davis-Stirling Common Interest Development Act), it may reduce the risk of decisions being challenged as unfair, inconsistent, or procedurally improper. Providing members with consistent access to information can also help address concerns before they escalate.

How to Promote Transparency in HOA Operations and Decision-Making
To promote transparency in HOA operations and decision-making, the board should:

• Provide regular updates on the status of ongoing projects and initiatives
• Hold board meetings that are open to members except as permitted for executive session under California law
• Make meeting minutes and required financial disclosures available to members as required by the governing documents and applicable California law
• Respond to member inquiries and concerns in a timely and accurate manner
• Ensure that decisions are made in accordance with the governing documents and applicable laws

At LS Carlson Law, we understand the importance of transparency in HOA operations and decision-making. This article provides general information for California HOAs and homeowners and is not legal advice.