Management Articles
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Eating an Elephant
Procrastinating is long cultivated habit which takes time and desire to change. Some have accepted it as unchangeable while others yearn for change. (Those that have accepted their fate need read no further. It will only add one more task to your Never To Do List.) Why do some procrastinate and others not? Procrastinators view tasks as insurmountable, mountains to climb. Just the thought of the hike makes them pause, and pause, often lapsing into mental gridlock. Some of the reasons include:

• Complexity. The mind boggling aspect of some tasks can keep some from starting because of uncertainty of where to start.
• Prioritization. All things have importance but some are more important than others. Being able to choose requires the ability to forecast outcomes. This requires the ability to shape outcomes.
• Cornucopia of Options. Life continually spews out opportunities. Picking and choosing is difficult.
• Nasty Business. Some tasks are necessary but no fun. Avoidance is a natural response.
• Indecision. Trying to forecast every outcome, over analysis leads to paralysis.
• Loner Mentality. "I’ll do it myself" is fine for small jobs but stalls the big ones. Few have the expertise to carry big projects start to finish.
• Fear of Failure and Success. Ever climb the Ladder of Success only to find it was leaning against the wrong wall? Some are afraid of climbing ladders at all.
• Uninspiring. Not every job is captivating. Do I have to?
• Perfectionism. Perfectionists obsess over minutiae. A job is never quite finished.
• Distractions. The cacophony of life makes it difficult to focus.

So there are many reasons for procrastination but it ultimately leads to stalemate and paralysis. Life has a way of leaving procrastinators in the dust. Life dictates "lead, follow or get out of the way". So, consider: "How do you eat an elephant? Answer: One bite at a time."

Those that get things done tend to approach big tasks in small bites. So, pick a task long delayed, any one that piques your interest, for starters. Initially, it’s more important to get engaged in the process than worry about the quality of the task. Map out a timetable: Day One, Day Two or Week One, Week Two etc. Setting deadlines for each part of the task will help focus on the parts. Now...begin, and procrastinate no more. You can do it!   BACK

Compromising Position
One of the vexing issues a new Board has to contend with is lax enforcement of owner additions and modifications by former boards. Lack of enforcement often results in non-compliant decks, fences, sheds and other creature comforts. The violators often claim they got verbal approval for the installation from the developer or some board president that moved years ago. Others claim they didn’t know approval was necessary. But for whatever reason, there are now a boatload of violations that need to be reconciled. How should the current Board deal with them?

The length of time a violation has been in place affects the course of action. If it's been no more than a year or two, the Board's case is fairly strong. The new Board had to displace the old lax Board to correct the problem. If the violation has been in place longer, the owner can make a stronger case that a series of Boards consented by silence. But action is still called for or the current Board is accomplice to mismanagement.

Send Violation Notices. To begin the enforcement process, violation notices should be sent to every violator with a demand for removal of the offending modification. Some may comply willingly and narrow the list. However, some won't comply so the Board must decide how strongly it feels about the violations. In this regard, choose battles wisely. Legal battles are exhausting financially and emotionally.

Agree to Compromise. The idea of a compromise is to permit the violation to continue while the current owner owns the property. Once the property is sold, the offending modification must be removed at owner expense. Further, the current owner must provide for all maintenance and is responsible for any damage it might do to HOA maintained structures (like a deck that leads to dryrotted siding). It is fairly easy to get an owner to agree to this compromise since it allows the modification to remain, it averts a potential lawsuit and it demonstrates to the other members that the Board took reasonable action without going to court.

Written Agreement. Have violators pay to have the HOA’s attorney formalize the agreement in recordable form which identifies the modification, the legal description of the subject property and the conditions of the compromise. Then date, sign, notarize and file it at the local title company. This makes the matter public record and puts all prospective purchasers on notice of the requirement should the owner "forget" to comply with the agreement. Then even if there is a sale, the Board can require the new owner to comply with the condition of the recorded document.

Owner Maintenance Responsibility. In the case of owner modifications, all repairs and maintenance should be the owner's responsibility. This too should be described in a recorded document for the benefit of future owners. For ease of tracking, the Board should compile a list of such modifications by type, date of installation and location. Ancient history in an HOA is two years ago. This list will prove invaluable over time and keep the Board from spending money for something that it shouldn't.

Damage to HOA Components. Repairs of damage caused to HOA components by owner installation should be charged back to the owner. For instance, it's not uncommon for improperly installed deck and privacy fences to cause dryrot or structural problems to the building.

Establish Reasonable Standards. Even if the Board approves owner modifications, it is extremely important that they be professionally and properly installed for aesthetics and compatibility with the existing construction. To this end, the Board may set reasonable standards such as requiring the owners to:

1. Use only licensed, bonded and insured contractors for the work.
2. Submit detailed plans in advance, say 30 days, so the Board can consider the issue adequately.
3. Show evidence of proper permits required for the work.
4. Pay for architect or engineer plan review if the modification is complex or affects structural integrity

The Board should approach owner modification violations and requests in a businesslike way still keeping an eye to compromise. Life is not black and white and neither is life in an HOA. Position for compromise.  BACK

Cultivating Committees
The strength of a homeowner association lies in the effective volunteer efforts of its members. While the heavy lifting often falls on the board of directors, committees can help lighten the load by focusing on specific tasks assigned by the board.

There are two types of committees, standing and ad hoc. Standing committees exist indefinitely or until the board decides their purpose is no longer needed. Examples include Landscape Committee, Social Committee and Pool Committee. Standing committees have ongoing and often repetitive tasks to accomplish. Ad hoc committees are formed for a specific purpose which, once accomplished, terminates the need for the committee. Examples include the Budget Committee and the Christmas Party Committee.

The beauty of committees is that they can draw on specific member expertise, like a CPA that serves on the Budget Committee or an architect that serves on the Architectural Design Committee. Ad hoc committees do the same thing with the added attraction that the commitment time is limited.

Committees are training ground for future board members. Since committees are called on to participate in board meetings to give reports, participation acquaints committee members with the board process. Proven and effective committee members are candidates groomed for board service.

Whether a committee is standing or ad hoc, both should have a similar framework including:

Purpose. The purpose of a committee is to assist and advise the board in a given area of responsibility.

Structure. A committee should consist of three or more members which may include a board member as a board liaison. The board president typically appoints the committee chairman. The chairman is the spokesperson for that committee.

Committee Authority. Each committee should be provided a clear job description by the board that outlines expectations. A committee must obtain specific authority from the board to deal with any matter outside its job description. A committee cannot make policies or rules. Only the board is granted that authority. A committee may recommend a policy or rule to the board. If the board agrees with the recommendation and formally enacts it, the committee may or may not be given authority by the board to enforce the policy or rule. Enforcement authority is also under the discretion of the board.

Recommendations. A committee should provide recommendations to the board at regularly scheduled board meetings so all directors can participate. Recommendations should be in writing and supported by credible research so that the board can make informed decisions.

Meetings. Committees meet monthly or as appropriate to their assignment. The meetings take place at a time, place and discretion of the committee. A designated person on the committee should take minutes so that the committee has a record of what was accomplished to date or planned for the future. Committee meetings do not need to be announced to or open to the members.

Vendor & Contractor Authority. Unless otherwise directed to by the board, committees should not give direction to or request bids from any HOA vendor or contractor. This process is handled through the board or management.

Concerning Property Management. Unless given specific authority by the board, no committee should give direction to or make requests of the management.

Expenditures. Committees are sometimes given a budget which should carefully be accounted for. All committee expenditures that fall outside the committee budget must be authorized by the board. All reimbursement requests should be accompanied by receipts.

Reporting. Committee reports should be prepared and delivered to the board at least one week prior to the board meeting. Committees should prepare their own reports unless the board has approved the management doing so. Each board meeting agenda should provide time for committee reports.

The board is elected to oversee HOA operations, not to do all the work. Committees offer the opportunity to spread the work around and to involve more members in the homeowner association operations. Cultivate committee opportunities when you can and harvest the rewards.   BACK

The Role of the Secretary
The homeowner association secretary is responsible for preserving the HOA’s history and maintaining its records. The secretary should be efficient, well organized and committed. Here are typical tasks that are performed by the secretary:

• Record the actions and record why they were taken.

• Preserve member voting records.

• State the authority by which directors take a certain action and cite the documents granting that authority if appropriate.

• Record all matters brought before the board, whether adopted, dismissed without discussion or vote, rejected, deferred, tabled, or simply presented as information.

• Keep in mind that the minutes are official records and admissible as evidence in a court of law.

Announce Meetings & Prepare Agendas. Notifying board and general members of meetings is required by law. How and when notice is given is typically stated in the governing documents. Agendas are essential to the success of the meeting. The Secretary should use standardized language when preparing the agenda such as:

• Call to order by the (presiding officers

• Proof/waiver of meeting notice

• Presence/lack of a quorum

• Reading and approval of the previous meeting minutes

• Reading and acceptance of various reports

• Unfinished business

• New business

• Adjournment

Maintain Records.

• Store and retrieve documents as needed.

• Devise an effective filing system, and keep files safe and accessible.

• Prepare and maintain a retention schedule for document disposal.

Witness & Verify Signatures. Many HOAs have policies to safeguard assets that require two signatures on checks or witness signatures which generally falls to the secretary.

Maintain Lists. The secretary is responsible for maintaining lists of board and committee members, officers and members, their contact information and voting percentages.

Verify Proxies. The secretary accepts and verifies proxies for annual or special membership meetings and ensures that proxies and ballots are kept in the HOA’s records.

Complete & File Forms. The secretary is responsible for filing certain forms with state agencies. These might include employment forms, incorporation documents, and other official records of the homeowner association.

Manage Correspondence.

• Route correspondence to appropriate representatives: manager, office, board member, committee chair, etc.

• Ensure that tone, form and spelling of all correspondence reflect positively on the HOA.

An HOA secretary carries a lot of responsibility. Those that fill that role should be sticklers for detail and devoted to the task. Done well, it is an indispensable office and worthy of praise.

From the Board Member Tool Kit.     BACK

Director Code of Conduct
As a member of a volunteer homeowner association board, it's useful to codify the goals and behaviors an effective director should seek in a Code of Conduct. It not only serves as a constant reminder for those that are serving but can also help screen out candidates with hidden agendas. Consider adopting something like this:

As a director serving the interests of my homeowner associations, I agree to:

Act in the Community's Interests. Directors will strive for the common good of the homeowner association, foregoing personal interests. Personal agendas will be left at home.

Engage in Lawful Acts. All board actions will comply with the governing documents and the law. To accomplish this requires thoughtful deliberation and input of knowledgeable professionals.

Maintain High Standards of Conduct. Directors conduct should be above reproach and avoid the appearance of impropriety.

Demonstrate Mutual Respect. Directors will address each other and homeowners with respect, even when in disagreement.

Attend All Board Meetings. Effectiveness is based on keeping informed and making informed decisions. This is made possible by attending meetings where decisions are made.

Be Prepared. Directors will come prepared to meetings by reviewing the agenda and related materials before the meeting

Keep Focused. Directors will listen attentively and courteously to demonstrate respect and willingness to learn.

Maintain Confidentiality. Directors will not share highly sensitive information and respect the privacy of all owners.

Maintain a Supportive Attitude. Directors will encourage owners, employees, managers and contractors to promote better performance and teamwork.

Be Loyal. Directors will respect the authority of the Board by not undermining majority decisions and enacted policy.

Respect the Rules. Directors will obey the homeowner association rules to set a positive example for others. Directors are not "above the law."

Pay Assessments on Time. Directors will remain current in all charges and will not expect special treatment.

Promote Harmony. Directors will promote community harmony in act, word and deed.

A Code of Conduct controls caustic communications, curtails conflicts and calms cantankerous communities. Adopt one today!   BACK

Board & Manager Authority
To achieve effective communications between homeowners and their homeowner association, it is important to understand the authority that belongs to the property management company, the board members individually and the board as a whole.

For example, the management company may be able to solve a problem quickly while at other times, management may not have the authority without board approval. When that occurs, frustration and conflict may ensue. Can this situation be avoided?

The Management Company and the Board. The management company serves as the agent of the HOA's board of directors. In other words, the management company has limited authority. When that authority is exceeded, the board must provide the additional authority. Similarly, an individual board member (including the President) does not have the authority to override board policy or governing document authority.

Homeowners' Concerns. It is not uncommon for an owner to ask the property manager to take certain action to assist that homeowner. However, that manager may not have been granted authority to make decisions on behalf of the board. It’s helpful to understand why some owners might prefer for the management company to assume the authority and bypass the board's decision making process:

Mistrust: If a board communicates poorly or has issued unpopular edicts, homeowners will be leery and suspicious of a board's ability to make the correct decision on their behalf.

Past Failures: If there is a history of problematic board decisions, such as failure to allocate reserve money for maintenance, then resistance and distrust are assured.

Buyer's Remorse: Some owners buy into a covenant-restricted HOAs without realizing the requirement to abide by the governing documents and rules.

Speed of Decisions: People expect timely results and don't want to wait.

• Adopt policies to handle routine items that the management company can follow without having to go to the board every time a routine approval is needed.
• Hold consistent board meetings. If the meeting schedule is known in advance and when the board makes decisions, the wait becomes more palatable.
• Have a reply sent immediately to the owner after the decision is reached and state the reason for the decision if their request is denied.
• Give members an opportunity to address the board when requested.
• Provide a newsletter and website that keeps members informed of board policies and procedures.
• From an owner's standpoint, it is a good idea to get involved in the governance of the HOA. Attending board meetings, serving on committees and running for the board are excellent ways to learn how an HOA works.

Some homeowners view the conformity required in homeowners association as a sacrifice of rights. However, most people enjoy the stability, structure and self-governance that are part of every homeowner association. They appreciate the rules that protect and maintain the quality and value of their investment. The key to success is a board of directors that works to promote harmony among the owners and does what it can to make swift and fair decisions.

From Neighborhood Link    BACK

The Rogues Gallery
Homeowner association boards can be composed of all sorts of people, backgrounds and experiences. It’s good to have a healthy mix of talent. However, not all board members have the HOA’s best interest in mind and play the part of board rogues. While the term "rogue" may bring back fond memories of Robert Wagner, Paul Newman and Robert Redford, these particular rogues are more akin to rogue elephants and rogue waves - unpredictable and disruptive. Our rogues include:

From an article by Brenda LeClair - Certified Management    BACK

Not Long Ago
Innovations in technology have substantially increased the ability for professional homeowner association managers to provide their clients with more efficient and quality service. For example, it was not long ago that managers would prepare for board meetings by snail mailing paper agendas to the board. Today, board packets are emailed to the members.

Another example of modern efficiency is the budget review and approval process. Revisions to the draft budget are made by laptop at the meeting and finalized the same night. When it comes to writing minutes, the secretary or manager can draft the minutes at the meeting (or soon after) and emails them to the board while recollection is fresh.

It was not long ago that owners needing account information would call to have documents snail-mailed, faxed or made available at the office for pick-up. Today, with web-based technology, owners have the ability to access their personal accounts immediately. They can review their account and even make payments online.

Adapted from an article by Christa M. Brady www.associaliving.com   BACK