Micro-Managing. One of the most counter-productive things a Board can do is micro-manage the manager. Smart HOA Managers base their charges on the time it takes to get the job done. If a micro-manager is boosting the manager’s time with nitpicking phone calls, ultimately it’s going to cost the HOA more money in management fees. That, or the manager is going to quit to end the badgering. That too will cost the HOA money since breaking in a new manager is always time consuming and expensive.

Holding Unproductive Meetings. An efficient Board holds few Board Meetings. The largest HOAs can normally get by with monthly meetings and the rest meet quarterly. That said, it’s critical that those meetings be productive (read "get something done"). Here are a number of pitfalls that hinder productivity:

• Failure to provide meeting information packets prior to the meeting (or failure by the directors to read them).

• Drinking cocktails before or during the meeting.

• Discussing non-agenda items.

• Failing to make decisions.

• Long meetings

On the infrequent occasions the Board meets, make them production intensive. Have an "action" agenda and stick to it. Make decisions. Keep the meeting to no more than two hours.

Disregarding Personal Liability. The HOA is a business just like any other and needs prudent care in handling business. HOA directors have personal liability for the decisions that they make, or don’t make, on behalf of the HOA. If there is a director that doesn’t understand this and routinely says or does things that could attract legal trouble, purge that director from the Board. Loose lips sink ships.

Personal Agendas. Personal agendas push more important HOA business aside in an emotional huff. Beating a personal drum simply wears people out. When a personal agenda is spotted, instruct the carrier to lose it, and quickly, or leave the Board.

Failing to Acknowledge Volunteers. Volunteers are the lifeblood of a homeowner association. Without them, there is no Board or committees. Since there is no pay for these jobs, recognition is the currency of care. A kind word at a Board Meeting, an article in the newsletter and a plaque presented at the Annual Meeting all go a long way to retain current volunteers and attract new ones.

Hiring a Member as Manager. In an ill advised attempt to save money, the Board may hire a member to act as manager or maintenance person. These are usually miserable failures because:

• Conflict of Interest. Hiring a member produces an employee that also is responsible for paying monthly assessments which include his/her salary.

• Paying Cash Under the Table. To save even more money, the Board decides to skip federal and state withholding, unemployment insurance and workers’ comp. This person is an employee and the HOA is a business. Besides being illegal, doing so exposes the HOA members to unnecessary risk associated with injuries and contested terminations.

• Rarely Qualified. Being retired does not qualify someone to do bookkeeping, perform collections, enforce rules or perform complex repairs.

• On Call 24/7. Member managers are usually expected to be on call but rarely does the HOA want to pay for it. Also, being resident manager is like living in a fishbowl. Few can tolerate such close scrutiny for long.

Since the odds are high that it won’t work, hire only a non-resident with a proper resume for the work.

Tripping hazards are everywhere. When carelessly overlooked, the next thing you know, you’ve stubbed your toe and are headed for a face plant. Ouch! When it comes to managing your HOA business, make them trip free.

Adapted from an article by Julie Adamen.  BACK 

The ARC is more an administrative function than a deliberative one. For it to function properly, the Board should enact clearly written guidelines for the committee to follow rather than let it make it up as it goes. If the design guidelines are not present or complete, the first order of business is to enact a policy with as many specifics as possible so that the committee merely has to compare an ARC request to the policy. If the policy is complete, it will save both the ARC and members an enormous amount of time in sorting out what’s what. A well written Architectural Design Policy leaves little to chance and committee discretion.

The Architectural Design Policy should be easily accessible to all members, ideally, on the HOA’s website. Regular reminders of the policy should be noted in newsletters with something like "The HOA has appearance and design standards which must be approved by the Architectural Review Committee. Direct all approval requests to (fill in the blank)".

It is common for governing documents to reference architectural design or restrictions but the criteria is usually far from complete or can get outdated. The Board has the authority to expand the criteria as long as it’s in line with the governing documents. If not in line, the governing documents must be amended. It’s always a good policy to circulate any new design policy with the members for review.

There may be design changes that are needed in order due to the passage of time. For example, cedar shake roofs may have been dictated as the original standard. However, cedar shake roofs are very expensive, difficult and costly to maintain, have a short useful life and a higher fire risk. Alternatives like 40 year architectural composition roofing that mimic the shake look make sense, reduce cost and maintenance plus increase fire safety. There are other design changes that may make sense like this one.

Another reason for design change is to achieve contemporary styling. Paint color, in particular, can make a tremendous difference in curb appeal. While that chocolate brown looked groovy in the 70s, it really drags buyer appeal down now. It is very important not to lock the community into a color palette that is detrimental to resale value. Color palettes should be reviewed at least every five years to make sure the community is keeping pace.

Fences have also undergone vast improvement in both material and design. That privacy wall sided to match the building should be replaced with a contemporary design that achieves privacy with cheaper and easier to maintain materials.

One of the most significant design values is landscaping. Developers often install landscaping that looks great during the sale phase but over years overgrows or otherwise becomes unsuitable to a mature landscape look. There are new plant and bush species available that improve appearance while reducing maintenance and water requirements. The design requirements should give specific guidance for practical, aesthetic and integrated results, rather than each homeowner installing a hodge podge of plantings. In common wall communities like condominiums, resident plantings should be restricted to patios, decks and balconies. Allowing common area planting makes it very difficult for the landscape contractor to maintain a consistent look and entices some residents to commandeer an ever expanding amount of common ground.

While the ARC has a fair amount of power to review and approve requests, the Board of Directors has the ultimate responsibility for decisions. There should always be an appeal process that provides for Board review.

Appeal can be simplified if the Board also acts as the ARC since the issues are pretty much already understood by all parties. The appellant is simply being given one more chance to convince the Board of why that lime green paint really will dress up the neighborhood.

One important ARC philosophy is to promote good design rather than block creativity. Pay close attention to this one. The attitude of the ARC should never be: "NO...now what was your question?". Responses should be considerate, compassionate and helpful. Remember, members often are members emotionally invested and passionate about their ARC requests. It’s extremely important to guide the process carefully and not alienate a neighbor. Compromise if possible. If the request is just too far off base, an expression of empathy softens the blow. Or, if the request has some merit in the overall design policy, suggest trying to get it approved at the next Annual Meeting as a new option. That leaves the door open to a "maybe" if a majority of the members agree.

Refining HOA design takes time like a fine wine. Be flexible and recognize that tastes do change. The wise ARC keeps a finger on the pulse of design and anticipates the coming tide.

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