What are the first three thing new directors should learn?

That decisions are made as a group and not individually.

That you need to do what is best for the Association/development and not what is best for one or two individuals.

What fine advice!

I especially like Michael's point about learning the governing docs, which the two newer, Ed & Sue, haven't learned.

Officers' duties, in our bylaws, too is important. Because of our complexity, we do have an onsite PM and Asst. PM to whom we delegate a lot. Our PM has learned a great deal about our premises, budget. etc. in her 6 months here. But I think directors count too much on her to the extent they're not learning on their own. She tries to encourage them to take charge.

So, yes, we need to learn to act as a team that makes decisions on behalf of our members/stakeholders. It seems to me directors can never go wrong if the well-being of the community as a whole always is foremost in their minds. And I think one thing to learn is cooperation and compromise.

Oh, actually the workshop isn't till Friday, so there's time for more thoughts. I'll appreciate them.

Much good advice. My suggestions would be:

1. Read and understand all docs.

2. Read and understand the budget.

3. Do things for the greater good of the community versus your personal wants.

4. Hide nothing. Lay it all out in the open even if painful.

Great advice from everyone so far. Considering that most of your board members are new, you might also check if your property manager, local CAI chapter, etc., has a type of Board member “boot camp” the newbies can attend for a half or full day. That way, they can get more information on the basics. As time goes on, experience and guidance from you and the property manager should take care of the rest.

In fact, you might want to consider putting together some sort of Board manual everyone can use as a reference. It’s not about addressing each and every situation you may encounter, but basics like the difference between an operating and reserve budget, parliamentary procedure, overview of collections, etc. could go in there. I believe CAI even has a type of Board director’s manual your association could buy for everyone and you can use it along with information specific to your community.

Since you do have two hours, I think an overview of the governing documents is a great place to start (that can take up most of the time by itself). You should also have a discussion of fiduciary duty and why that’s critical to being an effective board member. Everyone else has already touched on various aspects of it, but the bottom line is that board members must make decisions that are in the best interests of the ENTIRE association, not just themselves or themselves and their immediate neighbors.

That means check your personal agenda at the door and ask questions about anything you don’t understand. That’s not the same as asking until you get the response you like – you need complete and accurate information to make an informed decision. Make the best decision you can and run with it – if you make a mistake (and no one’s perfect), admit it, fix it and learn from it

Process......do everything by the book, as a unit/team. No rogue "decision" makers.

DOCUMENT EVERYTHING.

The Board Member Tool Kit by CAI

Kerry,

This question has bothered me since you first posted it. The question implies that a director need not know anything until he takes a seat on the board.

The answers posted thus far are things that a director should know but are also things a person tossing his hat in the ring should know before he raises his hand.

I'll bite.....

Knowing governing docs is important and well articulated so let me offer this for new board members:

1. The long-term board members (incumbents) are not inherently "shady" or incompetent - give yourself time to get to know them before applying HOA board stereotypes

2. Projects will unfold 300 to 500% more slowly than you think they should

3. "Compassion" on delinquent dues punishes current account holders who endure less-than-best amenities

4. The Reserve Fund is YOUR #1 hedge against special assessment and loan debt. Take care of it and feed it like you would your rose bushes.

5. 80-90% of your board of directors has no interest in actively serving the community other than attend meetings and express opinion.

Well said.

Thanks, Nigel,(and Sheila) our bylaws require a nominating a comm., so every year we appoint one that sits with our PM a few days later who tells them that all candidates are owners in good standing and the Comm. says OK (We haven't had any candidates who did not meet these basic qualis. BUT, we'll get rid of it too is we ever amend our 15 y.o. bylaws.

We did offer a Meet the Candidates Events attended by maybe 18 households (of 200+). Each of the 5 d candidates also wrote a bio that went out with the secret mail-in ballots that are required in CA.

And thanks to Kelly, too: #1. I'm the only long-term director and I don't think there's any particular negative stereotype about me. I've been very active and have new ideas, which the other directors have seen/heard at open meetings.

#2. Absolutely at my HOA , well, maybe 3X as long, and a source of frustration.

#3 we're very strict with delinquencies.

#4. Totally agree and we're doing better on that front--are about 58% fully funded.

#5. my nine years on our board has shown maybe 15% of (7) directors don't want to do anything except attend. One such man just was defeated when he ran for reelection.

I guess, Larry I should have framed my question differently: What three things should new directors learn to help them govern effectively?

Our MC top exec. duo led us in a Seminar and the first emphasis was on defining our fiduciary responsibility! Good! The next emph. was on learning a bit about our complicated finances (three op. budgets, three reservers accounts). Next was an overview of our governing documents. Next was openness & communication with HOA Members.

Our fiduciary responsibility brought up a question that I'll ask y'all soon that has to do with our upcoming board meeting and a director's agenda item.