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1) You need to get all the docs from the developer and if there aren't any and you want/need to draw them up you need to get a lawyer who knows the code where you live and then write the by-laws, rules, fines, dues fees you want and go around.
2) Then you have to get a majority percentage of the homeowners (not renters) signatures (usually notarized) to pass those into your laws. If you want the ability to fine for architectural violations but you don't have enough homeowners who agree to that then you can't establish those fines...unless it is already written in the founding docs somewhere.
3.)You will have to be responsible for setting a budget every year and giving that budget to the homeowners to look at. You will need to find your own landscaping, trash, snow plow removal contractors every year and get bids. You will need to have yearly elections. You will need to set up a meeting schedule and various committies, especially architectural. You will have to decide how often to do architectural inspections and in your by-laws state what the actions are going to be for non-compliance. Remember, you can't fine anyone unless the majority of homeowners agree to be fined.
4) Various other things: who is going to be responsible for the money? You have to open up a community account and be ready to show all the homeowners the statements. Who is going to go to court when there is a legal problem? If you don't collect fines how are you going to get information out to everyone if you don't have the money to send out mailings? There's a million little things you have to factor in. These are just the tip of the iceberg....
Most HOA's are NOT volunteer. If your HOA is truly a volunteer HOA, then people dont have to pay dues if they dont want to, and there is nothing you can do to them. The dues would be similar to a donation.
If your HOA has rules against cutting grass, etc, its likely you are NOT in a volunteer HOA and your HOA could issue fines, place liens, and even foreclose on your house.
By Volunteer doesn't that mean they do not get paid to be on the board?
You can have mandatory HOA membership and dues, with volunteers serving on the board.
I would think it odd to have volunteer HOA membership and dues with a paid board or paid management.
No confidence in a revenue source for payment.
Oh I see. Thanks for the explaining. Like i said I am new this stuff and wish I would have had the knowledge to look deeper into how an HOA is run. Mine sucks. None of the board members in my HOA gets paid. I appreciate their service and have offered to help but have been rebuffed for the most part.
The new president seems to be trying but he has complained there is no recourse really to go after people because it wasn't written in the covenant. That I dont get. If a set of rules are set up, why wasn't there a repercussions also written in? I mean, I'm old enough to know that rules get broken. The president stated that the covenant would need to be changed and that requires a vote however they tried years ago and no one wanted to vote for the changes. Then there is the legal fund, not enough to hire a lawyer to pursue anything. Our HOA fees are pretty minimal but there are several people that have not paid in years. Of course those are the same people that don't cut grass, having siding missing from their homes and one house recently lost shingles in a storm 2 months ago. They still have a blue tarp on the roof. The sub is starting to look bad and in January a house sold, a nice home and the new owners have only cut their grass once since moving in. At this point, I don't see the advantages of an HOA. I wanted to avoid neighborhoods that wanted people to be devoid of any personality but this HOA is so lame I don't see any benefits at all.
Definitely you need to get the documents. As others said, most likely everything to do with the HOA is already set. There is probably some specific number of homes that once they are sold, starts the transfer from the developer to the homeowners. You need to make sure that your HOA is on top of this as transitions from the developer/builder is where many HOA problems happen. Making sure ahead of time that your dues structure is set up to actually pay the bills is a good place to start or else you may all be in for a big surprise.
As far as paid board members, the Attorney for an HOA I was in prior to this one said that it almost never happens because it opens the directors up to liability that if they are volunteers, they are protected from. I am sure the laws are different in each state regarding this, so it probably means nothing to you.
Making sure ahead of time that your dues structure is set up to actually pay the bills is a good place to start or else you may all be in for a big surprise.
Yep, almost always, the developer sets low, low dues to get people to buy. Then when he gives it to the HOA they quickly figure out the dues are way too low to pay for the pool, insurance, paving, roofs, etc, etc.
Thank you all for taking the time to respond - I appreciate your input......
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The president stated that the covenant would need to be changed and that requires a vote however they tried years ago and no one wanted to vote for the changes. Then there is the legal fund, not enough to hire a lawyer to pursue anything. Our HOA fees are pretty minimal but there are several people that have not paid in years. Of course those are the same people that don't cut grass, having siding missing from their homes and one house recently lost shingles in a storm 2 months ago. They still have a blue tarp on the roof. The sub is starting to look bad and in January a house sold, a nice home and the new owners have only cut their grass once since moving in. 
At this point, I don't see the advantages of an HOA. I wanted to avoid neighborhoods that wanted people to be devoid of any personality but this HOA is so lame I don't see any benefits at all.
