Duties of Homeowners Association Directors

Directors of community associations, like directors of other nonprofit corporations, are not guarantors of the success of the association and are not typically liable for mere mistakes in judgment. Courts require only that directors act as ordinary, prudent people and do not hold them to a standard of prudent business people. They recognize that directors must sometimes make difficult cost-benefit decisions and will not generally second-guess those decisions as long as the directors acted in good faith, and in a manner they believed to be in the best interests of the association, and as reasonably prudent people.