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EmilyB2 (Arizona)
Posts: 40
Posted:
Hi,

I have discussed to the Board that we create committees for things like community events and we also want a Fining committee. I am looking for any opinions, advice on setting this up. How do we do it? What is the best organization/structure for it?

Thank you.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
First off how is the apathy of your HOA? It's nice to want committees but the reality is that it takes people to volunteer to be in them! Also they all are answerable to the board. The board will have final say in whatever decision the committees come up with. Just bear that in mind if there are any conflicts.

If you want a fining committee set up, make sure your HOA has the right to issue fines. If they do, then you need to make a fining schedule defining exactly what for and for how much. Fines in many states can NOT be used as the basis of liens. So factor that aspect in. However, a HOA can pay someone to remove a violation (within reason) and send the owner the bill for doing so. If that owner does not pay that bill then that can be the basis of a lien. Although that process would require giving proper notice and the option of the owner to correct the violation in a certain time line before the HOA steps in. I personally would not see many people openly volunteering to be on that committee unless they are the nitpicky people.

Funding is the biggest issue with committees. Do the committees want to use the HOA money or do they want to fund their own? A social committee could do either or. A HOA is ONLY funded by it's members for it's members. If the HOA sets aside money for social events (with possible tax ramifications) then the social committee can operate within means. However, some social type committees since volunteer may want to raise their own funds separately. That would allow only charging those who want to participate to pay in and may include non-members like renters to attend events. Kind of like a pot-luck.

A neighborhood watch should ALWAYS be ENTIRELY SEPARATE from a HOA and NEVER EVER funded by it. I know many would like to have a committee like this set up in their HOA. Which is great and good idea. Except it should NOT be associated with the HOA's funds. It should be an entirely separate entity even though it has the same people. You all seen what happened in Florida with the shooting. If the neighborhood watch had been separate from the HOA, the HOA would not have been sued. So need to consider those things..

We had a clubhouse committee. Their job was to collect the $100 damage deposit and $15 rental fee. They had a calendar in the clubhouse and put down the events people had scheduled. They also made sure the place was cleaned up and it was supplied with regular supplies. We had limited keys to the clubhouse and only would lend them out to whomever rented. The people had to be in good standing to rent the clubhouse out. So it really did help out the board by having this committee in place.

So committees are a good thing but only if you have enough volunteers. There will be need to be rules and guidelines. Just establish the funding issues and make sure to follow the HOA rules. Good luck and prosper!

Former HOA President
CarolR11 (Colorado)
Posts: 2,563
Posted:
Say, Emily, our Board is our "Fining Committee," but have I read that FL requires a separate committee for levying fines? Does your HOA already have a Schedule of Fines? Who calls violators to hearings and fines them or otherwise disciplines them now?

Get at least three homeowners together and write a proposal to the Board suggesting the formation of a Social Committee--the three of you are willing to serve. You three think about what you might want to do in terms of activities and make a list for the Board. I think the best way is for Board to assign you an annual budget. Members would buy items for social events and submit receipts to, say, your property mgr. or Board Treasurer for reimbursement.

Check your bylaws and you'll probably see that the Board approves the formation of committees, its members and its chair. You serve at the Board's pleasure and they can "fire" you, disband you. So you three (let's say) want to suggest a committee chair to the board. You want to specify that you'll meet once a month, write minutes to submit to the board and present a monthly report to the Board. If your board's set up this way, you may want to request a "Board liaison," or the board might appoint one who'll attend your meetings to present the Board's approach to your ideas.

Whatever the committee, you need to sell yourselves to the board--why do they need you? How will you benefit your community?

I came to the board through our committee systems and am a strong supporter of them--it's a great way to groom future board members and the more residents who're involved in your HOA the better.

But some boards or a majority on them, worry that committees might get too sassy, too influential--they worry they'll lose prestige or something when committees' accomplishments seem more pronounced than the board's. So, Emily, watch out for that!
EmilyB2 (Arizona)
Posts: 40
Posted:
I am so thankful I asked here. This is great information. Thank you Melissa and Carol!
CarolR11 (Colorado)
Posts: 2,563
Posted:
You're welcome, Emily. By the way, in our HOA, Social Committee members are not required to be homeowner. Often there are renters with good ideas. How it and other committees are set up also depends on the structure of you HOA. We, for example, have a prop. Mgr. and an assist. mgr. The latter makes reservations for our lounges, collects deposits and returns them, etc. Our PM does all of the communications re: violations, "invitations" to hearings,, send the letters of the results of hearings to the alleged violators.

But in self-managed HOAs or HOAs where the Board does most of the work, show them that you will not cause them yet more work. Show them that you can relieve some of their burdens.
EmilyB2 (Arizona)
Posts: 40
Posted:
Thank you Carol. Relief of burden is one reason that the a couple of members on the board wants committees. I have to say though that the current board is tough getting any events done. It is just all the work it takes to put together an event.

The PM is the worst, she says that in her opinion HOA money shouldn't be spent on it because it isn't the HOAs responsibility to have events. I told her that we always (over 10 years) have had it in our budget and haven't used it in the last couple years which is only $1800 a year. But she thought it was okay to spend over $30,000/year to hire a county sheriff to patrol the neighborhood which also isn't HOA responsibility.

But I think she is having a bad week because this just came up and we haven't had problems before and the neighbors loved that we started having events again. She is not doing the work so why should she care?

But anyways, it was her idea to do the fining committee because otherwise we can't fine. She and others suggested that that committee do the events too and I said no. These people are only happy to complain about others property not do events.

But so far I have volunteers happy to be on the social committee. I am going to meet with them to help them put together a proposal, discuss a list of events and about how to conduct future meetings. One of the volunteers is on our PTA so she is familiar with non-profit meetings which helps. I am on the Board so I am going to act as the liaison and support them with whatever they need.

We had discussed committees in January's meeting but the PM never put it on the minutes and I wasn't at the Feb meeting. I asked for it to be put on the agenda this coming meeting and she refused. I am going to have to make a motion at the meeting to add it to the agenda especially for the second time ever she also didn't add "Any other business as brought up by the board" otherwise I would just be able to talk about it at the end of the meeting. I really don't know what her problem is this week (well I can guess but I think she is too old for that).

If anyone can shed some light on why a PM wouldn't want community events I would love to know because I really can't figure it out. Especially since the homeowners want and enjoy it. They (a couple of homeowners) actually approached the board about it before I did.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Emily

It has been a running dicsussion on here about spending association money on "social" events versus spending it on common association expenses only.

Some have even objected to spending association money on get well flowers to the BOD President when one was in the hospital.

I say no social budget but a good social committee might just be an income producer and if not income producing, at least a break even deal.

Be very careful when requesting to spend other peoples "common" money.

Hope this helps.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Emily, I'm puzzled about why your PM has so much say in your HOA. You and the board make decisions, not her. Who gave her the authority to keep items off the agenda?? Even if you missed the Feb. meeting, you may still correct minutes already approved by making a motion to do so. Might be better to just push ahead though.

It could be that your PM thinks it'll be more work for her. or, as with John46, she just may be opposed at a philosophical level.

IMO, social events serve really important functions by bringing neighbors together in a fun setting. This activity of being together ideally fosters senses of belongingness to our community. Residents feel more connected with one another. One interesting side effect is that the closer one feels connected with their community, the more pride they will take in it and the more they will follow the rules.

We have about 5-6 social events a year including one potluck and one poolside luau. In our HOA of 211 units, 25 of which are vacation homes, and 43% of which are rentals, 50-70 people, mostly owners, show up. Realtors have commented favorably on our colorful elevator flyers announcing these events. Those who never attend have not complained about a tiny fraction of their dues going to the SC's budget.
EmilyB2 (Arizona)
Posts: 40
Posted:
Carol, I am as puzzled as you are. If it wasn't for the events we started having, they wouldn't have had any volunteers for the fining committee. It wasn't until the events that people started getting involved in coming to the meetings and volunteering. So you are right when it says it gets the community involved and caring and that is why I started bringing back events to the community again. I really don't see what the PMs reasoning is.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Well, my real question is--sorry I didn't say it more clearly--is WHY is your PM bossing around the Board!!?? Is there something in her contract with you that gives her so much power? Hope Not!!
EmilyB2 (Arizona)
Posts: 40
Posted:
Carol,

No, not that I know of. Whenever we complain about her controlling she says she has to do what we tell her and that it is up to us. But then we have moments like this. I don't get it. I think she is moody. She likes to add things to the agenda that she finds important and says anyone can add anything to the agenda but when it is something she has an opinion against she says only the president can add to the agenda. I honestly don't know what her issue is.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By JohnC46 on 03/21/2013 4:20 PM
It has been a running dicsussion on here about spending association money on "social" events versus spending it on common association expenses only.

Some have even objected to spending association money on get well flowers to the BOD President when one was in the hospital.

I say no social budget but a good social committee might just be an income producer and if not income producing, at least a break even deal.

Emily,

You stated: "The PM is the worst, she says that in her opinion HOA money shouldn't be spent on it because it isn't the HOAs responsibility to have events."

Your PM is right. Chances are your corporate charter says nothing about your HOA being in the social activity business. It's purpose is to manage the common property of your community. It's all too easy to forget that an HOA is (most often, a corporation) a business and not a social club. Wanting to have social events in a community of people who live closely is a natural, human thing. But, it is not business. There are other ways to accomplish this.

Having an HOA sponsor (and pay for or subsidize) social events complicates matters and increases risk.

1. There are tax implications. According to the IRS, no more than 10% of the annual budget of an HOA can be spent for purposes other than to care for, manage, or acquire the common property of the HOA. Furthermore, even if you charge to attend social events, any profit that is realized becomes taxable income to the HOA. The IRS does not recognize HOAs as a social club. There are other IRS categories for that type of organization.

2. Increased liability. Check to see what losses your HOA liability insurance covers. Will it cover losses that arise specifically due to some social activity?

3. Increased exposure to lawsuit. When activities are sponsored by an HOA (a corporation) they have to be carefully planned to be sure every detail is covered. I recall one instance where a complaint was made because an HOA sponsored a holiday party in a location that wasn't handicap accessible.

This does not mean that our community does not have a social committee or social events. We have one or more events every month. However, our social committee is made up of volunteers and is completely separate from the board and the HOA itself. They have their own budget and do not receive any funds, support, or direction from the HOA. The only thing they receive is rent-free use of the clubhouse and other common areas for their activities. If any issues arise out of their activities, they are on their own. They are the community's "social club."

Put simply: don't mix business with pleasure.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Emily,

You've touched a hot topic. The property manager's fiduciary responsibility is manage HOA assets efficiently given the common basic expectations of HOA operation - maintenance of common areas, replacement of equipment and enforce of commonly-agreed covenants. You can't fault the PM for advising against spending HOA cash on social functions. I'd fire a PM would advocated putting the "beer money" above utility bill payment.

That said, the board decision is final if it chooses to spend on social events to increase neighborhood participation The PM is on the record that it's negligent use of HOA dues in his/her opinion as a professional manager of properties.

Committees, to me, are pretty pointless. It's a group of people who sit and talk and then expect the one (or two) active people to do their bidding. Been there, done that. Charge a new committee to implement its own proposals and the proposals die.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am also of the opinion that HOA's should not be involved in the "Social" arena of their HOA when it comes to their money. HOA's are non-profits and are to spend the money they collect on upkeep and maintenance of their amenities/common areas. Having a cook-out isn't one of those items. The IRS even recognizes some of that.

However, as one who has held many of those social events to get the people involved, I did it on my own dime. All I did was open up the clubhouse for a gathering point. We had the best Halloween parties there every year. I had all the kids and parents meet there at a certain time so ALL the HOA kids could go out as a group. This allowed those who had other plans in the neighborhood a chance to give out candy and then leave. They would know when all the kids had passed through that were ours. Afterward anyone could come gather at the clubhouse to have fun. It was bring your own candy and Pot-luck.

So nothing against social events in HOA's. It's just about where the funding comes from. Social events need to be either pot-luck or separately funded. Don't mix the business with the pleasure. Remember the HOA's money is EVERY member's money. Not all of them want you to spend it on donuts for the meetings...

Former HOA President
EmilyB2 (Arizona)
Posts: 40
Posted:
I respect everyone's opinions on here and I think that they are all great. I just wanted to summarize everyone's points and address what should happen, what is considered normal here in our area, and what my opinion is (because we are all entitled to one).

1. Social events bring together the community:

This doesn't seem to be argued against by anyone.

2. Social events should not come out of HOA assessments because it is not the responsibility of the HOA:

In a perfect world no, and a lot of other things that are paid for should either. Having a playground, clubhouse, basketball hoop, and other recreational areas are not needed by a community and is not considered common areas required by any laws, but we still have them and spend a considerable amount of the budgets on them. Perhaps we need to get rid of these recreational areas as well since it shouldn't be paid for by the HOA because it goes beyond the description of "common areas" and not all the homeowners us these areas, need them or want them. The city and county already provide these recreational areas and is paid by our property taxes, so why should we pay for it again in our neighborhood which is open for any outsiders to come and use if they pleased.

Spending 18% of our budget on a county sheriff to patrol our neighborhood shouldn't happen either because security is also not the responsibly of our HOA. Not everyone wants it or wants to pay for it. We shouldn't use our budget for this either. Btw, we spend $32,000 on the sheriff and $1200 ($2.70 per homeowner per year) on special events.

Of course, my past two paragraphs take HOA responsibilities to the extreme, but if we are going to follow the documents to the "T" then that is how it would be. And I don't agree with any of it, I am just playing devils advocate. And I guess we can all argue that yes, recreation areas are considered common areas as well, but in reality they are not all that "common".

In my opinion, I don't agree or disagree with HOA fees paying for the social events or the sheriff. The reason is that I think if the majority of the homeowners want it, they are paying for it and agreed to pay for it, then why not. But it would be nice to set up the social events to pay for themselves and we have been experimenting with that but it will take sometime to figure it out. If we went house to house to collect $5 from each homeowner once per year, we would have more than what we are currently allowed in the budget for events. Perhaps this is an idea. I wish the sheriff can pay for itself as well!

In our area in Florida, it is very common for HOAs to have a couple of parties/festivals throughout the year as well as Community Garage sales. Our homeowners I think expect it because it is so common. I have got comments from them that they don't see the use in a HOA if they don't see any events. Some who are paying into the HOA expect to see it used to have events. When they don't see us doing events, they say the board is lazy and don't do anything. They wonder what our money is being wasted on when there are no events. These are just comments and feedback I have gotten from homeowners. Of course I go on to explain our budget and where all the money goes and what else the board does. But it is perceived in our area by the homeowners that the HOA is there to provide community events as well.

3. Insurance:

That is a great point Bruce. We are however fully covered.

Basically, everyone is concerned about where the money comes from. In our situation, it is only $2.70 per homeowner per year. That is way less than 10% of our budget, it is 0.70% of our budget!!! It is like pocket change.

No one in our board has a problem with the events as long as it doesn't take up too much of their time. There is only one person who doesn't want to spend money on it, but he says that about 100% of everything that comes up in the board, but he was still supportive at the events.

REGARDING THE PM:

The PM encouraged me doing the events when she first come to us about a year ago. Her NEW opinions came out of no where as a personal attack on me. She had an issue with an email that I sent out to all the board members saying that she and a couple other board members felt insulted/offended by it. I explained to her that she misread my intentions in the email and we spoke it out. However, she felt that I should address it at the meeting because she and others were offended. Well, I didn't want to be scolded at a meeting by other board members in front of homeowners, so I decided to call each board member individually and apologize if they misunderstood my emails intent. I called everyone and spoke to everyone but one person who's number I don't have. No one I spoke to expressed talking to the PM about the email and didn't find it offensive and agreed with my email.

So, I after talking with everyone, I spoke with the president, we went over some items to discuss at the next meeting and he asked me to tell the PM to add it all to the agenda (these included discussing the events and the "social" committee). I emailed her the list of items but I didn't tell her that the president told me to do it. I also told her that I spoke to all the board members and no one but her and possibly that person I couldn't reach had felt offended and that if that person did I don't think we need to take up the board's time at the meeting over it and that he can approach me individually like a professional adult and speak about it.

Now, previously she said anyone can add to the agenda. But this time she sent out a copy of my email to the board and asked if everyone agreed. Of course the person on the board who we call Mr. No, said no to several items that we had already discussed in past meetings but he wasn't there and said that since we didn't discuss it we can't decide on it.

She decides to take this one person's opinions and takes out the items that I had discussed with her that I would like to add, and had discussed with the president about without her knowledge. She then tells me that only the president can add to the agenda.

I emailed her back reminding her that she had previously told me that anyone can add to the agenda and quoted Robert's rules Q&A about that misconception that only the president can add to the agenda. I also wrote that they were discussed with the president and that he agreed with them and that I asked him to call her to confirm.

She, wrote back saying that it seems like all I seem to be concerned about are special events and that she doesn't think the board should have them or pay for them and she added those items back to the agenda anyway. I wrote back that our past events have been a success, that it has increased homeowner involvement in the HOA and that the board was happy with the results and wanted to do more as well as us having comments from homeowners that they would want more, that I respect her opinion but that I don't understand why she is bringing this up and that is seems counter-productive. After that she didn't seem to say much else.

Now, I spoke with her over the phone about that first email that she said offended her. She really read into it more than she should have but I respected her opinions and thought that everything between us was fine. No one else had an issue with that email. So, I don't know why she would behave the way she has been.

Sorry, for that long story, but I thought maybe it would shed some light on maybe why our PM has had a sudden change of heart regarding social events. I doubt it is the budget, liability or her having to do more work.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I think that you make an important point, Emily, when you speak of what's "normal" or typical in your locale. In our downtown setting, condos typically have social committees with HOA funded budgets. If we did not, I do think there'd be grumbling.

But it's also a good point that the PM's job is to advise your board on expenditures and budgets. Our PM came to us after having been a portfolio manager when she was responsible for four smaller shorter high rises. She reported that they all have SC budgets, but that even accounting for size differences, she stated her opinion that our budget was too large. And that is her job.

The SC was charging $10 a head for a hearty summer luau with Mai Tais (yes, we're insured) but a couple of H/O's did complain precisely because such events are in the budget. The SC argued that there were two reasons for the charge--1, so they'd know how much food to order. They also feared that a swarm of our younger residents would bring all of their partier-type friends to it. So, 2, to shut off reservations if it became too big (our pool area and the hardscape area next to it only hold about 80 people).

I asked this forum about the problem and someone replied to have people pay a refundable $10 by personal check only. wish I could remember who! This worked out great! The SC knew how many to expect and the disgruntled owners were happy!

But your PM does seem to have an issue with you personally, so it seems to be a different story. Based on her agenda issues, I started a different thread about PM's power that you might want to add to.
EmilyB2 (Arizona)
Posts: 40
Posted:
Update:

So, I followed all the advice given here and was successful in getting the Event Committee voted in.

Here is what I did:

I contacted as many residents as possible to get "committed" volunteers. I was able to get 5, more than I had anticipated. I collected all their contact information.

I looked up studies done showing the need and benefits of having community events and summarized those studies and included links to the studies in the proposal.

I made a list of pros and cons of having community events and went over solutions to the cons.

I created a mission statement, objectives and 2013 goals for the Event committee.

I added all this information to a proposal and had the volunteers look it over to agree to or comment.

I then at the meeting summarized the first parts and read the pros, cons, solutions, mission statement, objectives, goals and volunteer names, then asked for a motion to vote it in.

It was voted in unanimously and this morning the manager said I did a fabulous job.
EmilyB2 (Arizona)
Posts: 40
Posted:
Carol, to respond, thanks for your advice. I do feel that I have some kind of issue with the manager. I am however going to start a new thread about it because I really do need advice on what to do. Thanks for your help.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Well done, Emily. You did a lot of work, but the board appreciated it, I'm sure, and your whole community will benefit!

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