1st Steps After Separating from Management Co

Now that you have made the decision to self manage your association, you will want get your Board members together for a quick organizing meeting. As President, there are several things that you want to accomplish:

1. Assess the current state of affairs and identify any items that need Board attention in the next 30 to 60 days. This could range from paying past due electric/water bills or property taxes to setting up how the association will be managed. Setting this initial priority helps to distinguish what is important now rather than worrying about the huge task of items that lie before the Board. Remember, that it is very important for the Board to show initial results and to get a few early wins to build confidence.

2. Make Board assignments to anything that should be addressed within the next two weeks, identify timing, and confirm responsibility. These are your quick hitters and things that need immediate attention. They include such things as:
• President
- Prepare a tentative agenda for the first Management Company-less Board meeting and develop the necessary handout material.
- Assure that you have key committees (i.e. – budget, landscaping, etc) in place and operational, including a committee charter and roles and responsibilities.
- Identify and recommend a person to serve as the association’s legal council, if and when their services are needed.
• Treasurer
- Determine expected short-term cash flow requirements and determine if there are sufficient resources available.
- Recommend to the BoD the association monthly fees structure that will meet short-term obligations, including a condo owner notification and a collection process, if none is in place.
- Establish appropriate bank accounts and singing authority.
- Determine the status of any current insurance policies and verify that proper insurance is present, including; general liability, Directors and Officers (D&O) liability, fidelity insurance,etc.
- Recommend an accountant to be used for the association and the desired level of service
• Secretary
- Collect/Verify roster of unit owners and their addresses, as shown on the official records of the association, along with any other personal information required by by-law provisions
- Make initial provisions for safekeeping of the association nonfinancial clerical records and correspondence.

3. Create a longer term plan of attack for yourself that identifies what has to be done, the sequence that it must be done, and when it should be done. Located at www.*****.com under the Contents section is a very useful outline of all the things you should be doing to run the business of your association.

Good Luck
JoeK

Payson,

Our 21 SFD HOA did this earlier this year, also saving $6K in mgmt. fees.

JoeK's list nicely covers stuff that needs to be done.

But as for first steps, we:

1. Got a PO Box.
2. Opened 2 new accounts at a new bank (checking and reserves).
3. Got a detailed final accounting from the PM, and monies due us, and all the docs of ours in their possession.
4. Wrote to Membership and asked for their patience as we sorted out everything. We also kept them apprised on a regular basis of our progress.
5. Learned our CCRs and ByLaws thoroughly.

IMPORTANT NOTE: Keep things friendly with the PM, if that's in the cards. You'll probably be seeking their advice on items you don't currently anticipate.

So far, everyone here is happy with the results. But it took a bunch more work than we reckoned.

Good luck!