Posted:
The big difference between for-profit CEOs & HOAs' Board presidents, is that HOAs are (almost always) nonprofits. Boards govern non-profits. Boards are the "deciders" and "the boss." NOT the president.
Sheila, based in part on her long Board experience, is right: 'There are many conversations on this website about board presidents who bully, harass and threaten everyone else - and the board goes along with it because they're intimidated, don't see a problem (because they don't pay much attention to anything - they're on the board for the title) or benefit from bad behavior." nd I hafta say that among the 30+ directors I served with over 14 years, only a handful learned much about our gov. docs. all instead relied lot of our full-time on-site PM & their MC.
I've served with about 11 presidents on my HOA Board. 2 were completely ignorant and one was a bully in her ignorance. The otters only lasted a year on the Board. 3 others were well- informed about our governing docs & some states statutes. BUT one of those was an abusive, secretive President--an attorney-- who turned the Board into the same. Most were willing to serve. But I had to be prez one year when no other directors would serve tho' I was otherwise always the secretary*.
Our 3 best presidents imo, had come out of the public sector of the economy and seemed to be much more comfortable about getting input from other directors, making sure everyone could present thieeiopinions, being a good listener to owners during open forum. This holds true in my tiny Board sample HOA even thro' one came from a 20 years career in the US Marines and then 20 year a sergeant in a town's police force.
Another BIG reason is directors' sheer IGNORANCE of the HOA's governing documents & relevant state HOA/condo and/or nonprofit corporations codes info. So another is sheer laziness. These directors forget that if a bullying or stupid prez is given authority--informally or formally--to make decisions by a lazy, ignorant or self- interested board of directors, ALL Directors are held responsible are liable, etc.!!
Really like Wendy's idea of as a Board, requiring new directors to show some knowledge of the HOA's governing docs & devotion to a sole meeting to discuss among all board members.
Now, our MC holds a directors workshop every year after an election, but I'm not so sure it helps. There's a lot of emphasis on our complicated financials, which new directors find overwhelming. While our Bylaws are only 18 pages long, our CC&Rs are 77 pages + 2 several page "Exhibits." BUT directors need NOT read every CC&R "Article." In my CC&Rs, only 41 pages are routinely useful. But even within THOSE Articles, there are areas and even Sections to skip.
I don't know th typical nm,aes of C&R Articles,but perhaps they're similar to mine.
E.g. Destruction of Improvements & condemnation"; "Participation & Severabiilty of Interests"; Rights of Motrgagees."
Skimming is sufficient for: Insurance" & "Ownership & Easements."
A VERY important Article is: Definitions: it's by far best if all directors LEARN the language of their documents, which I think was pointed out in the referenced article on CEOs. Ours is 11 pages
Also important, the Article in my CC&Rs called "The Association," which includes the powers & duties of the Association via the Board and its limitations.Next, "Memberships & Voting rights," which shows the power & voting rights of owners. Mine are 8 pp.
The Article on "Assessment"s includes the HOA's ability fine, too, about reserves. 9 pp.
Very important: The Article on "Use Restrictions" has basic rules, i.e., against "nuisances"; use of residence for commercial purposes; rental restrictions; animals; signs & flags; use of exclusive use (limited use) common areas; no mechanics liens; drainage; Deeded Parking Spaces and stowage cages/lockers. toxic & Hazardous matters; An HOA's Rules & Regs often are permitted by this Article to expanded, elaborated on the CC&rRs. 3 pp. It's best, imo, the read your Reuls & Regs with these use restrictions. nd Rules & Regs are easy to read.
Very Important is an Article in my HOA called "Improvements" because if includes the Maintenance obligations of owners and of the Association. This includes things like Damage by Owners; "Wood-destroying Pests." In our 2022 rewrite of our CC&Rs, we included an excellent "Maintenance Matrix" as an Exhibit, which details every exclusive use common area items (which covers our 300 balconies), that might be questionable and also covers basic common areas responsibilities & owners' responsibilities . 5 pages. without reservation, I highly recommend any HOA with significant #s of limited use common areas construct such a matrix as an Exhibit to your CC&Rs. I believe e you can add it so long as it agrees entirely with your CC&Rs and there is no conflict. But check with your HOA attorney.
"Architectural Review." Our high rise HOA CC&Rs requires an ARC & lotsa ARC-type rules, so its duties AND scope are explained in this Article. 5 pp. It refers to our Arch.Guidlines, which in CA is a governing document, which directors should skim if they have an ARC. If not ARC, directors must learn this doc or similar.
Finally "General Provisions," kinda a grab bag of items. e.g., Hierarchy of Docs; Attorney's fees; IDR & ADR (dispute resolutions). It also has this interesting "Section 16.4 VIOLATIONS AS NUISANCE. Every act or omission in violation of the provisions of this Declaration shall constitute a nuisance and, in addition to all other remedies herein set forth, may be abated or enjoined by any Owner, any Member of the Board, the manager, or the Association." 2+ pp.
*Though a Board of 7, our required commercial owners never is president and nowadays, never attends board meetings as stationedin Canada.