Yay, No Receivership for Us!

CathyA3 (Ohio)
Posts: 6,299

Posted:

My community successfully elected three board members yesterday evening with no fireworks and a pretty full meeting room.

No, I'm not on the board. My goal for the meeting was to deliver a wake-up call and motivate the community to hold an election without blowing up the meeting again. When we started, there were two of us who had volunteered to serve - after I finished my speech, 6 or 7 more people volunteered. It was gratifying to see an entire room full of big eyes focused totally on me and what I had to say about receivership. They were riveted! A few nodded their heads as I ticked off my bullet points, which was good to see - others do get it. And the people who volunteered afterwards echoed my words. After the meeting, several people came up and thanked me for saying what I had - they thought that it had gotten everyone in the right frame of mind.

My neighbor who had volunteered to run with me is also happy with the outcome. She co-owns a commercial construction firm (she's busy) and she cares for elderly parents (she's very busy). She was willing to serve to keep us out of trouble, but was grateful that others had stepped up since her free time is very limited. In the long run, I think this is the best outcome for the community - we're smarter and more engaged.

Some surprises:

* One of our vocational dissidents stepped up and volunteered. To be fair, she's not a hard core member of the group, and she's more knowledgeable in general about how these things are supposed to work. And - the bigger surprise - I agree with some of her complaints which she alluded to in her speech. Mercy sakes alive! It's hotter than the hinges of Hades in Texas, and my area is under a blanket of smoke from wildfires, but I do believe hell has frozen over.

* I think I mentioned in other threads that our manager appeared to be overstepping her authority. Well, I had confirmation of it last night - she said so right out loud. She explained to candidates how she runs things (!). Board meetings are held quarterly on Zoom. All business between meetings is conducted via email. Homeowners are to contact her for all question and issuess, and she will send the board members the information they need to make decisions. Everyone can probably guess my opinions on this (the words "oh, h3ll no" may be included). By controlling the information flow, she effectively determines the board decisions. How can the board be sure that they are receiving all relevant information? Also, can the board be sure that the information they do receive was not selected based on a particular goal? No, no they can't. This is BAD, not least because the manager doesn't seem to see any problem with it.

I also think that the board members are failing in their fiduciary duty if they just accept curated information and run with it. So the misbehavior is compounded.

My one regret with not being on the board was that I had intended to tackle this. For now I shall ponder my options.

So... one bullet dodged, more challenges looming.

I'm grateful for all of the help I received from this community while I was writing that speech. I incorporated suggestions from everyone who made them. Bill will probably be amused to find out that I did rehearse it after all (the cockatiel is very well informed about receivership).

Onward and upward!

ElleN (Idaho)
Posts: 4,420

Posted:

(Much of excellent update snipped for brevity.)

Quote:

Posted By CathyA3 on 06/29/2023 6:53 AM
My goal for the meeting was to deliver a wake-up call and motivate the community to hold an election without blowing up the meeting again. When we started, there were two of us who had volunteered to serve - after I finished my speech, 6 or 7 more people volunteered. It was gratifying to see an entire room full of big eyes focused totally on me and what I had to say about receivership. They were riveted! A few nodded their heads as I ticked off my bullet points, which was good to see - others do get it. And the people who volunteered afterwards echoed my words. After the meeting, several people came up and thanked me for saying what I had - they thought that it had gotten everyone in the right frame of mind.

You rocked it. Outstanding work.

Whoa, about the manager. And business done between the quarterly(!) meetings, for a condominium, by email? Yikes. Didn't you post not long ago that Ohio's condo act changed, requiring board meetings to be open to owners? I could be mis-remembering.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By ElleN on 06/29/2023 7:02 AM
(Much of excellent update snipped for brevity.)

Posted By CathyA3 on 06/29/2023 6:53 AM
My goal for the meeting was to deliver a wake-up call and motivate the community to hold an election without blowing up the meeting again. When we started, there were two of us who had volunteered to serve - after I finished my speech, 6 or 7 more people volunteered. It was gratifying to see an entire room full of big eyes focused totally on me and what I had to say about receivership. They were riveted! A few nodded their heads as I ticked off my bullet points, which was good to see - others do get it. And the people who volunteered afterwards echoed my words. After the meeting, several people came up and thanked me for saying what I had - they thought that it had gotten everyone in the right frame of mind.

You rocked it. Outstanding work.

Whoa, about the manager. And business done between the quarterly(!) meetings, for a condominium, by email? Yikes. Didn't you post not long ago that Ohio's condo act changed, requiring board meetings to be open to owners? I could be mis-remembering.

You're correct that the new law requires open meetings unless the community's bylaws say they are closed. My bylaws don't say that exactly, only that the meetings are held without notice - it boils down to the same thing. The sad thing is that with Zoom, it's so easy to allow homeowners to observe and even speak since the person running the meeting can mute non-speakers.

Another thing that concerned me is that she told the new board members that they'd only work an hour or two a week. I can tell you, I worked a whole lot more than a couple hours a week. Also, quarterly meetings are the minimum required by our bylaws. When I was on the board we meet every other month, and occasionally monthly when the workload required it.

We are still allowed to conduct business via email as long as the board members are unanimous in their decision and the decision appears in the next board meeting minutes. We limited these things to maintenance issues that are emergencies or are urgent enough that they shouldn't wait until the next meeting. All of them appeared in the Manager's Report section of the minutes. If you look at the most recent minutes available on our website, it appears that there's very little going on - and I just don't believe it.

My first and current opinion of this management company is that they are the low cost provider and they will do the minimum and no more. It's fine if the community doesn't need more than that, and there's certainly a market out there. But condos tend to have full cost needs (eg. after hours emergency response). And usurping board authority? There is nothing to justify that, except maybe it makes the manager's life easier.

Ironically, a few homeowners I've talked to recently asked me my opinion of our manager. At the time I really couldn't comment since I didn't have any hard facts to base an opinion on, only impressions and hints of red flags. Now I have data.

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By CathyA3 on 06/29/2023 7:37 AM
You're correct that the new law requires open meetings unless the community's bylaws say they are closed. My bylaws don't say that exactly, only that the meetings are held without notice - it boils down to the same thing.

I am not sure I am understanding your conclusion. In my opinion failing to provide notice violates the statutory requirement for meetings to be open to owners.

For reference, from https://codes.ohio.gov/ohio-revised-code/section-5311.08:

Unless otherwise provided by the declaration, the bylaws shall provide for the following:
.
.
.

(2) The time and place for holding meetings; the manner of and authority for calling, giving notice of, and conducting meetings; and the requirement, in terms of undivided interests in the common elements, of a quorum for meetings of the unit owners association;

How great that people there now seem to be looking to you for answers to questions.

BillD16 (Texas)
Posts: 971

Posted:

Quote:

Posted By CathyA3 on 06/29/2023 6:53 AM
My community successfully elected three board members yesterday evening with no fireworks and a pretty full meeting room.

No, I'm not on the board. My goal for the meeting was to deliver a wake-up call and motivate the community to hold an election without blowing up the meeting again. When we started, there were two of us who had volunteered to serve - after I finished my speech, 6 or 7 more people volunteered. It was gratifying to see an entire room full of big eyes focused totally on me and what I had to say about receivership. They were riveted! A few nodded their heads as I ticked off my bullet points, which was good to see - others do get it. And the people who volunteered afterwards echoed my words. After the meeting, several people came up and thanked me for saying what I had - they thought that it had gotten everyone in the right frame of mind.

My neighbor who had volunteered to run with me is also happy with the outcome. She co-owns a commercial construction firm (she's busy) and she cares for elderly parents (she's very busy). She was willing to serve to keep us out of trouble, but was grateful that others had stepped up since her free time is very limited. In the long run, I think this is the best outcome for the community - we're smarter and more engaged.

Some surprises:

* One of our vocational dissidents stepped up and volunteered. To be fair, she's not a hard core member of the group, and she's more knowledgeable in general about how these things are supposed to work. And - the bigger surprise - I agree with some of her complaints which she alluded to in her speech. Mercy sakes alive! It's hotter than the hinges of Hades in Texas, and my area is under a blanket of smoke from wildfires, but I do believe hell has frozen over.

* I think I mentioned in other threads that our manager appeared to be overstepping her authority. Well, I had confirmation of it last night - she said so right out loud. She explained to candidates how she runs things (!). Board meetings are held quarterly on Zoom. All business between meetings is conducted via email. Homeowners are to contact her for all question and issuess, and she will send the board members the information they need to make decisions. Everyone can probably guess my opinions on this (the words "oh, h3ll no" may be included). By controlling the information flow, she effectively determines the board decisions. How can the board be sure that they are receiving all relevant information? Also, can the board be sure that the information they do receive was not selected based on a particular goal? No, no they can't. This is BAD, not least because the manager doesn't seem to see any problem with it.

I also think that the board members are failing in their fiduciary duty if they just accept curated information and run with it. So the misbehavior is compounded.

My one regret with not being on the board was that I had intended to tackle this. For now I shall ponder my options.

So... one bullet dodged, more challenges looming.

I'm grateful for all of the help I received from this community while I was writing that speech. I incorporated suggestions from everyone who made them. Bill will probably be amused to find out that I did rehearse it after all (the cockatiel is very well informed about receivership).

Onward and upward!

CONGRATULATIONS!!!

My read is that you got the best of both worlds:

1. Your issues about possible receivership are going to be addressed properly, and

2. You don't have to serve on the Board. If I recall correctly, for all of the effort you put into speechifying and etc, you felt an obligation to step in and keep the situation from going to Hell - but you also have other things you could be doing with your time.

Again: congratulations! I'm impressed that you managed to rally people to the task - there are several categories of public speaking (delivering a eulogy; delivering a class lecture; making a toast; delivering a report; etc) - and motivating a crowd to pitch in is one of the most difficult.

Thanks for sharing this!

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

WendyM5 (North Carolina)
Posts: 1,522

Posted:

you scared several people into volunteering. lol.
Every PM I've dealt with handles stuff like that. It's scary, but probably more common than anyonoe realizes.

vis ta vie

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By BillD16 on 06/29/2023 9:47 AM
... snip ...

CONGRATULATIONS!!!

My read is that you got the best of both worlds:

1. Your issues about possible receivership are going to be addressed properly, and

2. You don't have to serve on the Board. If I recall correctly, for all of the effort you put into speechifying and etc, you felt an obligation to step in and keep the situation from going to Hell - but you also have other things you could be doing with your time.

Again: congratulations! I'm impressed that you managed to rally people to the task - there are several categories of public speaking (delivering a eulogy; delivering a class lecture; making a toast; delivering a report; etc) - and motivating a crowd to pitch in is one of the most difficult.

Thanks for sharing this!

Bill

I agree that it's the best of both worlds. My neighbor and I were prepared to do what needed to be done, but both of us have other commitments.

As for the speech, I didn't totally know what I was doing. I've heard comments from a number of lawyers who say the most successful ones are those who are able to tell a story that a judge and jury can understand. So that's what I tried to do, describing how homeowners would experience receivership as it happened to them: the jump in assessments, maybe financial hardship and not paying as a result, worrying about collections or even losing their home, being unable to sell the home if necessary or having to sell at a loss - and having no say about any of it. I think that speaks to every homeowner.

The most amazing part was seeing people's complete focus and watching them nod along as I made each point. Definitely worth all of the effort to get it right. I don't think I'm necessarily that great a public speaker - it's just that the story was compelling. And everyone who posted suggestions in these threads helped make it that way.

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By WendyM5 on 06/29/2023 10:46 AM
you scared several people into volunteering. lol.
Every PM I've dealt with handles stuff like that. It's scary, but probably more common than anyonoe realizes.

I say whatever works - at one point, our board numbers had dwindled to where the president and I feared receivership would be the only option, so we wrote a very strongly worded article about the topic and put it in the newsletter, adding this would be discussed with the association attorney if we didn't get more volunteers by the next meeting. It lead to one of our old members returning and two others who stayed for some time and did very well.

Cathy's speech on receivership probably should be posted on her community website so everyone will be be reminded of what's at stake. Hopefully the new board members paid attention - and everyone else gives them room to find their way.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Congrats! That is some really really HARD work! Glad people listened. I applaud you!

Former HOA President

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By WendyM5 on 06/29/2023 10:46 AM
you scared several people into volunteering. lol.
Every PM I've dealt with handles stuff like that. It's scary, but probably more common than anyonoe realizes.

I'm not upset that the PM is providing information to the board. They should do that, we pay them for it.

What I object to is the person acting a gatekeeper and controlling *all* information flow, in and out. The board doesn't know if they're receiving all relevant information or not. Or if the information has been selected in a way that affects the board's decisions.

The selection of information doesn't have to be nefarious or done with ill-intent. We all have our biases, conscious and unconscious.

The board has a fiduciary duty to the association. The PM's duty is to her employer, although ethical PMs will keep in mind the client for whom they're providing professional services. A board may want to mull over a decision or dig for additional info - a portfolio manager has multiple clients, needs to keep things moving along, and won't want one board shilly-shallying and making extra work for her. This is very common, and it's not a criticism of either party. It's just recognizing that the interests of the client and service provider may not align, regardless of how ethical and responsible they are.

And newbie board members won't be aware of all this and won't think to look behind the curtain, so to speak. They won't even see that there is a curtain.

JackS20 (North Carolina)
Posts: 271

Posted:

Quote:

Posted By SheliaH on 06/29/2023 2:18 PM
Posted By WendyM5 on 06/29/2023 10:46 AM
you scared several people into volunteering. lol.
Every PM I've dealt with handles stuff like that. It's scary, but probably more common than anyonoe realizes.

I say whatever works - at one point, our board numbers had dwindled to where the president and I feared receivership would be the only option, so we wrote a very strongly worded article about the topic and put it in the newsletter, adding this would be discussed with the association attorney if we didn't get more volunteers by the next meeting. It lead to one of our old members returning and two others who stayed for some time and did very well.

Cathy's speech on receivership probably should be posted on her community website so everyone will be be reminded of what's at stake. Hopefully the new board members paid attention - and everyone else gives them room to find their way.

I might need a copy of that article care to share? or a copy of Cathy's speech. Last spring our Secretary said she might resign because she was too busy. Then yesterday I emailed our Treasurer (who's main priority seems to be enforcing CCR's) that the Pres/Sec did not have time to be in charge of violations and maybe it should be on her plate. I honestly thought she would welcome that, but she then threatened to resign. Her main frustrations seems to be that other people are not following up on violations, holding hearings and issuing fines since the pandemic. So research a company to hire and do that, but for some reason she does not do that, and just brings it up over and over.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Speech attached, I hope...

Some of this is personal to me (I work for the builder). And since we'd already yeeted our board, receivership was coming unless we got our acts together, so that added urgency.

I'll only add what I'd mentioned earlier. Tell a story that homeowners will identify with. When they see themselves in the place of those in receivership, they'll do the work for you.

📎 Attachments (1):

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📄1630493897271.pdf(73 KB)

DavidG45 (Delaware)
Posts: 994

Posted:

Quote:

Posted By WendyM5 on 06/29/2023 10:46 AM
you scared several people into volunteering. lol.
Every PM I've dealt with handles stuff like that. It's scary, but probably more common than anyonoe realizes.

Our PMC certainly tries to run things themselves and cow the Board into doing what the PMC tells them to do. They try to control all information flow and prevent any transparency. This is probably common because it keeps the Board from ever reconsidering their contract with the PMC. As unethical as it is, PMC's also usually run the elections, which helps them make sure the Board is filled with people who will blindly re-sign the contract each year.

KerryL1 (California)
Posts: 14,550

Posted:

Excellant work & outcome, Cathy! Kudos!

Well, yes, some concerns about the PM. Is it correct to say that she works off-site? Do you know how many accounts she has? I don't think you're read the contract between her MC & your HOA. IMO, you and all directors should read it soon.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Thanks, all.

I found out during the meeting that one of the concerns of our "dissident" group is the lack of transparency involving the manager. The dissident who threw her hat into the ring alluded to it during her election speech. Unfortunately the ex-president who was responsible for hiring this manager is now back on the board. They did butt heads, though, so I await further developments with great interest.

I don't know how many other clients the manager has. The company she works for is growing and adding new people, so they must have enough business to justify it. They're slowly adding back the information that was lost during the transition to a new website, so once I see how much info is there, I can decide what kinds of records to request.

It's ironic that this ex-president griped about "lack of transparency" while I was still on the board, and our board meetings were open during my tenure and we had a website for the first time. Once I stepped down and she became president, the meetings were closed again. It's amazing how one's perspective changes when one's own personal fanny is in the hot seat. I'm (somewhat) proud of the fact that the only time my community has held open meetings was during my time on the board.

It's also ironic that the dissidents and I are natural allies at this point. I'm trying to decide if it would be possible to harness their energy without things going off the rails, but I'm leaning toward "no" - mostly because our current agreements disguise differing purposes. Interesting times...

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By CathyA3 on 07/02/2023 7:29 AM
It's also ironic that the dissidents and I are natural allies at this point. I'm trying to decide if it would be possible to harness their energy without things going off the rails, but I'm leaning toward "no" - mostly because our current agreements disguise differing purposes.

I figure this group would have to be open to becoming educated, and by you, on the legal structure of COAs. And they might be.

How COAs operate is a lot of information to digest. One sitting is likely not going to do it. I think one sitting could plant some seeds, though and get them thinking about how, for one, the first things to which they should turn when they are concerned about something the board are the governing documents and state law.

Your speech reads great. Your style is different from Shelia's of course, but one thing her version and your version seem to share, causing them to be persuasive IMO, is this: They are free of ego and personal interests.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By ElleN on 07/02/2023 7:55 AM
.... snip ...

Your speech reads great. Your style is different from Shelia's of course, but one thing her version and your version seem to share, causing them to be persuasive IMO, is this: They are free of ego and personal interests.

I actually cut it short. There was a bit more I wanted to say, but the audience was totally with me at that point and more verbiage would have lessened the impact IMO. Knowing when to stop is an important life skill. :-)

My personal communication style is actually more like Sheila's, but I was aiming for more formal since I mentioned that I still work for the builder - I even wore business casual clothing. I'm usually not that formal at our meetings, but I was on a mission, I had important goals to achieve, and I was by golly going to achieve them. You're right about Sheila's and my versions being free from personal interests. I wasn't trying to get myself elected to the board, I was trying to clear the path for three directors to be elected without another disrupted meeting.

ElleN (Idaho)
Posts: 4,420

Posted:

I re-read SheliaH's Q&D piece and see it has a lot of "I's" in it. It's still effective IMO (straightforward and just the facts, which is darn high art), but to be persnickety yada, the "I's" reduce its persuasiveness

Did the election actually take place? If not, when will it be?

On a mission... indeed. What a coup you scored. Pun intended.

That manager being the sole entity running the place, and really, with zero legal authority, would be troubling to me. I would be chomping at the bit to get a board a.s.a.p.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By ElleN on 07/03/2023 8:49 AM
I re-read SheliaH's Q&D piece and see it has a lot of "I's" in it. It's still effective IMO (straightforward and just the facts, which is darn high art), but to be persnickety yada, the "I's" reduce its persuasiveness

Did the election actually take place? If not, when will it be?

On a mission... indeed. What a coup you scored. Pun intended.

That manager being the sole entity running the place, and really, with zero legal authority, would be troubling to me. I would be chomping at the bit to get a board a.s.a.p.

The election took place. I and my neighbor had filled out Letters of Intent prior to the meeting and we were the only two candidates at the start of the meeting. We both gave our election speeches, I went second. After I was finished, the manager who was running the meeting asked if there were others who wanted to nominate themselves from the floor, and 6 or 7 homeowners did so. We elected three persons, all retirees, so we now have our board. My neighbor and I were completely satisfied with this outcome.

I agree that the manager is a problem. For now I'm being patient while I consider where to go from here.

BillD16 (Texas)
Posts: 971

Posted:

Quote:

Posted By CathyA3 on 07/03/2023 9:28 AM
Posted By ElleN on 07/03/2023 8:49 AM
I re-read SheliaH's Q&D piece and see it has a lot of "I's" in it. It's still effective IMO (straightforward and just the facts, which is darn high art), but to be persnickety yada, the "I's" reduce its persuasiveness

Did the election actually take place? If not, when will it be?

On a mission... indeed. What a coup you scored. Pun intended.

That manager being the sole entity running the place, and really, with zero legal authority, would be troubling to me. I would be chomping at the bit to get a board a.s.a.p.

The election took place. I and my neighbor had filled out Letters of Intent prior to the meeting and we were the only two candidates at the start of the meeting. We both gave our election speeches, I went second. After I was finished, the manager who was running the meeting asked if there were others who wanted to nominate themselves from the floor, and 6 or 7 homeowners did so. We elected three persons, all retirees, so we now have our board. My neighbor and I were completely satisfied with this outcome.

I agree that the manager is a problem. For now I'm being patient while I consider where to go from here.

Please do keep us informed!

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

BillD16 (Texas)
Posts: 971

Posted:

Quote:

Posted By CathyA3 on 07/03/2023 9:28 AM
Posted By ElleN on 07/03/2023 8:49 AM
I re-read SheliaH's Q&D piece and see it has a lot of "I's" in it. It's still effective IMO (straightforward and just the facts, which is darn high art), but to be persnickety yada, the "I's" reduce its persuasiveness

Did the election actually take place? If not, when will it be?

On a mission... indeed. What a coup you scored. Pun intended.

That manager being the sole entity running the place, and really, with zero legal authority, would be troubling to me. I would be chomping at the bit to get a board a.s.a.p.

The election took place. I and my neighbor had filled out Letters of Intent prior to the meeting and we were the only two candidates at the start of the meeting. We both gave our election speeches, I went second. After I was finished, the manager who was running the meeting asked if there were others who wanted to nominate themselves from the floor, and 6 or 7 homeowners did so. We elected three persons, all retirees, so we now have our board. My neighbor and I were completely satisfied with this outcome.

I agree that the manager is a problem. For now I'm being patient while I consider where to go from here.

Please do keep us informed!

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

CathyA3 (Ohio)
Posts: 6,299

Posted:

Just one small update.

A board meeting is scheduled for later this month to introduce the new board to the community and give homeowners a chance to ask questions. OMG, an open meeting, but I don't expect that to continue. Anyway, I plan to ask/talk about money:

* We haven't had an audit since I was on the board (annual audit required per bylaws).

* Our last reserve study is 5 years old and no longer reflects current economic conditions.

* Invested reserves should get a review since interest rates are higher than when the money was first invested.

* Maybe a word or two about insurance/liability (spiking premiums plus older and untrained volunteers doing physical labor again).

There's smart spending and there's dumb spending, and many boards don't know the difference. Not spending can also be dumb spending - for instance when the result of it is bigger bills (ie., kicking the can down the road).

WendyM5 (North Carolina)
Posts: 1,522

Posted:

Quote:

Posted By DavidG45 on 07/01/2023 12:23 PM
Posted By WendyM5 on 06/29/2023 10:46 AM
you scared several people into volunteering. lol.
Every PM I've dealt with handles stuff like that. It's scary, but probably more common than anyonoe realizes.

As unethical as it is, PMC's also usually run the elections, which helps them make sure the Board is filled with people who will blindly re-sign the contract each year.

all PMC's down here simply put an autorenew clause in the contract, lol.

vis ta vie

WendyM5 (North Carolina)
Posts: 1,522

Posted:

Quote:

Posted By CathyA3 on 07/12/2023 4:55 AM
Just one small update.

A board meeting is scheduled for later this month to introduce the new board to the community and give homeowners a chance to ask questions. OMG, an open meeting, but I don't expect that to continue. Anyway, I plan to ask/talk about money:

* We haven't had an audit since I was on the board (annual audit required per bylaws).

* Our last reserve study is 5 years old and no longer reflects current economic conditions.

* Invested reserves should get a review since interest rates are higher than when the money was first invested.

* Maybe a word or two about insurance/liability (spiking premiums plus older and untrained volunteers doing physical labor again).

There's smart spending and there's dumb spending, and many boards don't know the difference. Not spending can also be dumb spending - for instance when the result of it is bigger bills (ie., kicking the can down the road).

are you going to volunteer to help get any of this done?

vis ta vie

CathyA3 (Ohio)
Posts: 6,299

Posted:

I'd love to get this stuff done. We'll see how things go at the meeting - they've already appointed a Treasurer, but a finance committee could be very useful.

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By CathyA3 on 07/12/2023 4:55 AM
Just one small update.

A board meeting is scheduled for later this month to introduce the new board to the community and give homeowners a chance to ask questions. OMG, an open meeting, but I don't expect that to continue. Anyway, I plan to ask/talk about money:

* We haven't had an audit since I was on the board (annual audit required per bylaws).

* Our last reserve study is 5 years old and no longer reflects current economic conditions.

* Invested reserves should get a review since interest rates are higher than when the money was first invested.

* Maybe a word or two about insurance/liability (spiking premiums plus older and untrained volunteers doing physical labor again).

I opine: Spot-on.

Maybe find a polite way to point out the statutory requirement for open meetings and your hope that the Board continues to comply with the [somewhat new sections of the] Ohio Condo Act? I am not sure what this wording would be so as to not come off as offensive. For now, "just saying" that planting this seed right off the bat could get better results compared to waiting until the new board violates the statute.

KerryL1 (California)
Posts: 14,550

Posted:

Your idea for a Finance Committee will really be a good thing for your Association. Committees come & go in my HOA, but we've always had a Finance Committee and they've generally been very useful with their recommendations.

We require that the treasurer chair it, but I don't know if that's important. At minimum, though, a board members should be required to serve on it.

Having open board meetings is, imo, the best way to get committee members. This who attend are more likely to want to serve than Owners who don't attend.