Do HOA Presidents and Board Members Get Paid?

A homeowners association (HOA) establishes and enforces regulations for residential communities like subdivisions or condominium complexes. These associations are overseen by a board of directors, elected by homeowners, who make decisions for the community. A common question is whether individuals serving in these roles, including the HOA president, receive financial compensation.

Governing Documents and State Laws

The authority for compensating HOA board members stems from the association’s governing documents and applicable state laws. Key documents like the Covenants, Conditions, and Restrictions (CC&Rs) and the bylaws outline the community’s operational framework and rules. CC&Rs detail property use and restrictions, while bylaws govern the HOA’s internal procedures, including board structure and member voting rights.

These governing documents often stipulate that board positions are voluntary and unpaid, frequently prohibiting direct financial compensation or special perks. This is rooted in the principle that board members owe a fiduciary duty to the association, acting in the community’s best interest. Direct payment could create conflicts of interest. Homeowners considering board service should review their HOA’s specific CC&Rs and bylaws for compensation provisions.

State laws also reinforce the volunteer nature of HOA board service. While some state statutes might allow compensation if expressly permitted by the HOA’s governing documents, many do not or impose strict conditions. Homeowners seeking clarity should consult these foundational documents and relevant state regulations.

Common Compensation Scenarios

Most HOA board members, including the president, serve voluntarily without salary or stipend. This volunteer model is prevalent, with members motivated to contribute to their community’s well-being and maintain property values. The time commitment can be substantial, encompassing duties like enforcing rules, managing finances, and overseeing common area maintenance.

While direct compensation is uncommon, board members are eligible for reimbursement of legitimate, pre-approved expenses incurred during official duties. These reimbursements cover out-of-pocket costs directly related to HOA business. Examples include office supplies, mileage for HOA-related travel, or fees for educational seminars on association governance.

Proper reimbursement requires prior board approval and submission of receipts or other documentation. This practice ensures transparency and accountability for association funds. It is important to distinguish legitimate expense reimbursement from direct compensation; the former covers costs incurred on behalf of the association, while the latter is a payment for service.

Tax Considerations for Payments

If an HOA president or board member receives direct compensation beyond legitimate expense reimbursements, it is considered taxable income by the Internal Revenue Service (IRS). This applies even to small stipends or fees. Such compensation is subject to federal income tax, and potentially state and local taxes as well.

The HOA responsible for making these payments would typically need to issue an IRS Form 1099-NEC, Nonemployee Compensation, to the compensated individual. This reporting is required if total nonemployee compensation reaches $600 or more within a calendar year. For tax year 2026 and beyond, this threshold increases to $2,000 and will be adjusted for inflation.

Legitimate expense reimbursements, when handled through an accountable plan, are typically not considered taxable income. An accountable plan requires expenses to have a business connection, be properly substantiated, and any excess advances returned within a reasonable timeframe. For HOAs, understanding these distinctions is important for compliance and proper reporting of income and expenses.