Posted:
I've found membership in the Community Associations Institute very helpful. Check out their web site.
When I got involved in our COA, it was a mess. The original Board had no idea what they were getting into, therefore
nothing was done to proactively manage the property for the first several years. I'm not even sure that they closely
read the Governing Documents and understood their responsibility to the association and its members. And,there can be unpleasant and costly legal
consequences for Board members who are negligent in their duties as dictated by the Governing Documents. Unless you're going to take the job
seriously and proactively, I suggest that you not join the Board or become an Officer. Ours is a very litigious society, and you never can tell when an association member will take the Board or Officers to court for non-compliance with the Governing Documents. Be absolutely certain that
your association has Directors and Officers ("D&O") insurance.
So, the first and perhaps most critical step for any new Board and new Board members, and Officers, is to thoroughly read and understand
all articles of the Bylaws and CC&Rs, and any Board Rules and Regulations extant. These are the collective "bibles" of any HOA/COA, and are the very first place to go when governing issues and conflicts arise. Yes, you'd think that this is obvious, but any in-depth reading of some of
the issues raised in this forum clearly shows that isn't so.
The original Governing Documents should be examined for needed revisions every now and then...at least every five years, IMO. We found that many of
our original articles and their sections turned out to be unnecessary, unenforceable, unclear, incomplete, and even illegal. Oftentimes, a developer will use a "boilerplate" template for these documents, and should be tailored later after "real-world" use to reflect the desires and needs of the members in light of
experience. Caveat: Governing Document revision is usually not an easy task...it can (should) be time and labor intensive to do well.
A next important factor is the leadership skills of the Chair of the Board of Directors. In my experience, the minimum skills and qualities of an effective Chair include:
- TIME to devote to overseeing the management of the association.
- TALENT to lead groups and understand the priorities of small non-profit businesses (which most HOA/COAs become when registered with the state)
- TENACITY to meet challenges, resolve conflicts, etc.
- TRANSPARENCY in all decision-making
- TEMPERAMENT to work with people in oftentimes stressful situations
Next, it's critical to maintain accurate and complete records and documentation of all association business, communications, and transactions. This topic may be covered in the Bylaws. In addition, we created a written Document Retention schedule with specific minimum periods to retain every type of document involved in the management of the association. All Board decisions and actions must be fully and consistently documented, including official communications and discussions with a unit owner. This can prevent a raft of misunderstandings and tensions. And each Board member must share their communications with owners with other Board members. Email is an excellent way to assure accurate and complete records, especially when printed out and filed.
Again, HOA/COAs should be run as a business, with all that entails. Even though we do not have "stockholders" in the traditional sense, we do have "stakeholders" whom we serve. It's important for all Board members and Officers to always remember that we serve the association collectively for the benefit of all.
I could go on and on, but will end here. This is certainly no where near a complete "primer" for new Boards. I look forward to reading other's responses to your questions and issues.
(Note: I've been the Chair and the President of our COA for six years. We are an association of 21 free-standing units.)