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Pick a winner. Running for the board.

Started by SteveS8 • 14 replies • 2217 views

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SteveS8 (New York)
Posts: 128
Posted:
I am curious to know what you think are the perfect qualifications for someone to be sitting on a board. In our case, it is a board controlled by the sponsor.

We have two men running. One gentleman is very social and can be seen around the clubhouse at all hours. He is also the head of the Men's Club. The other is both a CPA and an attorney and has been instrumental in having over $300,000 returned to homeowners for over-payments.

If you had the opportunity to vote for one knowing the term would last for three years and take us into transition, which would you select?

Thanks, as always.
Steve
TimB4 (Tennessee)
Posts: 21,059
Posted:
Sorry, there isn't enough information provided for me to make a decision.

What is the character of each individual?

Do they work well with others or need to have their own way?

How much free time do they really have to devote to the job?

Are they concerned for what's best for the Association or for themselves (that is if something was better for the Association but would impact their property which side of the issue would they be on)?

Do they have an agenda or a pet issue?
Do I agree with their pet issue?

Will the enforce the covenants equally or selectively?

Do they share information or keep it for themselves?

Can they delegate or must they do everything themselves (goes with do they work well with others)?

You get the idea. There just isn't enough information to make an informed choice. Unfortunately, members often elect individuals to serve as Directors with even less information than you provided.

NancyG3 (North Carolina)
Posts: 342
Posted:
Steve - I would vote for the CPA and an attorney and has been instrumental in having over $300,000 returned to homeowners for over-payments. However, when the transition takes place you would probably have to hire a different attorney to handle for the Assn. This person's expertise would be very valuable for your Board but he could not be paid.

NancyG3 (North Carolina)
Posts: 342
Posted:
Steve - Forgot to add. You may want to talk with the attorney and go over what impact it would have to your Assn if he were a Board member and how would he handle. You didn't mention what type work the other gentleman did. Hope this helps.
SteveS8 (New York)
Posts: 128
Posted:
Excellent information. Thanks, Tim and Nancy.

Problem with knowing all the answers to the questions, Tim, is that I have no way of knowing most of them.

Maybe this will help.... the Men's Club president is already on the board as a Board of Manager which means he attends all board meetings and has a voice but no vote. He will continue in that position whether he wins or loses this election.

The CPA/attorney if he loses will not have a voice nor a vote, and the sponsor has consistently made it clear that confidentiality is priority number 1 if someone serves on a board, so he would likely not be privy to any information - financial, legal, or otherwise so that he could offer opinions to the resident board members or the board as a whole.

Steve
TimB4 (Tennessee)
Posts: 21,059
Posted:
Does NY not have an open meeting law?

If they do, then any member should be able to attend the meeting and should receive the same package of information provided to all board members. The member should also have an opportunity to speak at the meeting.
SteveS8 (New York)
Posts: 128
Posted:
I do not know if New York has an open meeting law (how do I find out?). But I can tell you with complete confidence that no homeowner would ever be allowed in that room unless they were an elected Board of Manager or Board of Director.
Steve
NancyG3 (North Carolina)
Posts: 342
Posted:
Steve - This is why you should talk with the attorney. He can answer all your concerns and I'm sure you could give him information regarding the Board also. If he is elected he should know how to handle the people on the Board.
Who elects the Board of Manager or Board of Director? I'm not sure what you mean by sponsor either. Do you mean the Developer and Builder?How many Board members are there and who are they? How many are allowed from the community? If the Assn hasn't been turned over to the homeowners the homeowners don't have any say. Before our Assn was turned over to the homeowners there was only 1 homeowner who could attend the meetings and they had no say. Normally when the homeowners take over the Developer/Builder sends out a letter stating at the annual meeting they would be turning the Assn over to the
homeowners and ask who would like to be on the Board. Then at the annual meeting an election is held to elect the Board. Then the Board elects their Officers. Once this is done a meeting is held with the Board and the Developer/Builder turns over the minutes, bank books and accounting records. When this is being done this is when you need an Attorney to help with the transition.

Your original question was a simple question, however, now it is getting more involved.
SteveS8 (New York)
Posts: 128
Posted:
There are 7 board members (Board of Directors) who have a vote. Four are sponsor (sponsor denotes our builder/developer) appointed and three are homeowner elected.

In the 5+ years of the community the four sponsor/builder/developer board members have never split their vote. Apparently they are told how to vote and they obey orders.

The three resident-elected board members have no background in finance or law. They are three very nice guys who are overwhelmed and told by the sponsor's attorney, who runs every board meeting, that they cannot say anything to anyone about anything outside of the board room.

Now we have a choice between the Men's Club president who is a very affable fellow good at getting little things taken care of like food in the cafe and trips for residents, and a resident who is a CPA and attorney and very much interested in delving deeply into lots of financial and legal issues about which there are and have been questions.

It appears that our sponsor is so concerned about the CPA/attorney fellow getting on the board that he ordered his board members to vote on a provision that will disallow any communication devices at board meetings which would allow absent board members from "attending" meetings. The CPA/attorney is out of town part of the year but would either fly up to attend meetings or would want to access SKYPE to be in on meetings. The sponsor is making sure that the resents know that he will not have that option.

Clearly, neither will be able to convince the four sponsor appointed board members to do anything they are told by the sponsor/builder/developer) not to do, unless it is clearly pointed out to them that there are questionable financial or legal issues.

Steve

JohnC46 (South Carolina)
Posts: 14,265
Posted:
In one of my past associations, the one BOD member that was a pain in the butt was an attorney who was afraid to sign/agree to anything unless we had a legal opinion on it.

One of my persoanl friends (a CPA) has always disagreed with the way my accountant (a CPA) did my business taxes. My "friend" said my CPA was to liberal in the deductions he allowed (in my favor). My CPA did them for 25 years and never, never an audit.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
I'd pick the one in the best health...No one is perfect and it will be a learning curve no matter who you pick...Just educate yourselves. That is the best option.
Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Darn no edit.

Steve

In your case the declarant (sponsor in your words), is still going to control so what is the difference between the two candidates as the owners will still have no control no matter who is elected?

I might lean toward the get along to go along type candidate until said time as the owners come into control. Then a different issue.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Now we have a choice between the Men's Club president who is a very affable fellow good at getting little things taken care of like food in the cafe and trips for residents, and a resident who is a CPA and attorney and very much interested in delving deeply into lots of financial and legal issues about which there are and have been questions.


I'd vote for the CPA. The men's club socialite will continue doing social things, because that is what he enjoys. Food in the cafe and trips mean nothing to the overall health of an HOA. Social people tend to just want to please everyone. And if upsets people to raise dues or put off necessary repairs before they become a larger problem, this is not the person you want. People like that will typically postpone bad news for years, until its too late.

If you vote in the CPA/attorney you get a free financial expert and legal expert. This is stuff your HOA would typically have to purchase and pay big money for. This person would be more likely to be able to take care of business and give people bad news without regard to making his "friends" mad with dues increases, special assessments, whatever.

HOA is a business. Not a social club. Choose accordingly.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Keeping perspective here.....this is an HOA board election.

You'll get differing qualities depending on which board member you choose. You know which skills your board needs most. Sometimes, it's charisma. Sometimes, it's detail. Only you can judge from your experience.

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