LEADER'S TALK: Your biggest challenges as a Board Member?

Basically they are the same as 2008, 2007 etc. budget, balancing the needs of the community against overburdening the homeowners as the community ages. Fortunately as an older established Association, we haven't seen a spike in foreclosures and according to the financials at the last BOD meeting; our delinquencies are at an all time low. (Knock wood they stay that way.)

Our biggest problem is delinquencies - we're wrestling with over $50K right now. Some had to be written off because of mortgage company foreclosures and the rest are the usual back and forth with lien filings, lawsuits and some payment plans. Our first board meeting for 2009 is next week and it'll be preceded with a meeting with the Association Attorney - as treasurer, I want to do a complete review of our processes to see what's most effective and go on from there.

We also have a big problem with tree roots messing up the sewer lines - three incidents last year, each costing an average of $7000. Since we don't have $7,000 to spend on this every time and we know our root barriers are crumbing, we will be looking for a cost effective permanent solution to the problem. How we'll pay for it, I don't know (I hate to think of special assessments, but this may be the only way, because our delinquencies probably won't get us the best loan terms)

Those are the biggest problems I would like to get some help with, as well as decreasing owner apathy. Owner apathy is really the root cause of many of our problems - many of them live out of state and it seems they think as long as they pay their fees, they don't have to worry about anything else (including their tenants). The folks who live here can't even make the annual meeting, don't respond to surveys and they certainly don't volunteer for the board or anything else. The current board won't serve forever (if I'm re-elected next month, I've already decided this is my last term) and so we really must begin grooming people to take over.

HOA Talk,

Only one addition to Bonnies list; LACK OF BOARD EDUCATION

With foreclsures increasing I'd like to see legislation passed to make it madatory that the bank, mortgage company, etc. be made to pay assessments while they own the property. No easy task. Are they exempt from property taxes? I doubt it. I urge all to contact their reps and insist that the lenders don't get a free pass while they own the foreclosed properties.

Just a dream but I also would like financial institutions who hold mortgages insist that assessments are escrowed as they do now with insurance and taxes. It won't happen unless we all complain.

The biggest thing I think our board faces is relevance. Other than an entrance way, we don't have any amenities and people want to feel that they get something for the money. I think that we will have to change management companies.

Tony,

If you are the Tony M** who is a member of Chore, please take a look at the thread titled: "Management Company & Transfer Fee Compensation". If you are who I think you might be and ***** is your Mgmt Co, you may be of some help to Joanne. Thank you! :-)

I think you have me confused with someone else.

Tony,

I'm sorry! The last name of the person I'm thinking of begins with "M" and your name is shown as "TonyM". Putting 2 and 2 together doesn't always come out to 4, I guess.

My personal challenge as a member of our board is communication. We are a medium size ocean front complex with very few full-time residents. Most of our units are second homes or investment property. I'm the only board member who lives here.

Our challenge as a board? Same as above (delinquents, budget, management companies) along with the additional problems that come with our location such as storms, preservation of dunes, CAMA, etc.

Management not following the law. Two out of four board members(they won't fill the empty seat) made a hugh decision for the community when it was an association vote. As one of the board members I have informed the other board members and management by emailing them the law they have broken. Their was not a majority vote of the association or the board. Illegal to me.Is there any sites that give free law advice.
Barbara

Management asked the then president permission to take $35000 from our reserve accounts and she gave him the ok. I came on the board in July and on Dec 23 approx 5pm management emailed the board that he needed permission to take approx $15000 from our reserve account. I found this out on Dec 27 from another board member. Two of four board members gave him permission and he took the money. The florida statutes say the members had the authority to vote on it not the board. Management just keeps saying "the state wouldn't come after us for keeping the water and eletric on". The membership was also denied their right of removing or hiring a new management, the board did that too.One other board member and myself are upset that the law is being violated and it doesn't seem to bother the other board members or management. We don't know what to do next.
thanks
Barbara

Management not following the law. Two out of four board members(they won't fill the empty seat) made a hugh decision for the community when it was an association vote. As one of the board members I have informed the other board members and management by emailing them the law they have broken. Their was not a majority vote of the association or the board. Illegal to me.Is there any sites that give free law advice.
Barbara

Our current challenge is foreclosures.

Out of 271 homes, we currently have more than 20 that have been foreclosed on or that are in foreclosure (and that number goes up every month). The problem with these foreclosures is the fact that you can't get the banks or mortgage companies to lift a finger regarding the properties, and these properties are quickly becoming a blight in our neighborhood. And forget about ever getting any dues or fines out of them. If they sell the property, they take whatever is owed, and if there is anything left over (which there rarely is), the HOA MIGHT get PART of what is owed to it.

The sad part is that it's only going to get worse.

Marciia, check what your documents say about Special Assessments. We recently had to do this when we had a TRIPLE insurance increase. It has nothing to do with the budget; it's a new and seperate bill that needs to be paid. Everyone is assessed an equal share to pay an unexpected bill. It happens a lot. Unexpected costs that are not in the budget. We knew our insurance was increasing and that the insurance needed to be paid (in full) months down the road. That gave us time to figure out a "per person" amount that needed to be collected; and it also gave us time to set up a monthly schedule for people to pay the costs that we'd need when the bill came due.

i enjoy what you said Ellen. I may ponder why the HOA monies cannot clean up the foreclosed properties too. Spend our hundreds of thousands on road/street/vacant lot clean ups, and then work on the amenities READ HARD. That would certainly shake up some of the ol'networks in place for the older communities. Cheers.

Hi Barb,
I advise you to get the Davis-Stirlings Condominium Blue Handbook. Then you can write the Attorney General in your state to require the Board to abide by laws. This is what we did in California.

Problem #1: Apathy. Have to beg for board members. Subdivision is 35 years old and split into two: (1) The old-timers who have been board members and who have become disenchanged with the process, or who have just become "too old to care", and (2) the newcomers, usually starting families, who don't have the time (who does when both parents work and the family includes 3 kids) or the long-term interest in the subdivision.

Problem #2: Liberal interpretation of governing documents by the BOD to accomplish its objectives (getting BOD members).

Problem #3: An aging, pressurized, underground irrigation system, although with diligent volunteer work and healthy finances, the only damages that now occur are caused by utility workers and tree roots.

Heidi, I would suggest starting a new topic with the questions you posted here. People are more apt to reply to a new topic than to a old topic about something else.

Good luck!

Our biggest expense is road upkeep and paving. Our biggest problem is dealing with environmental committee issues, people always read the CC&Rs to fit their benefit. Rental people who either don’t know or don’t care what the rules are.

HeidiW,
I too am in Georgia an recently became a Board member. I am in total shock and
enraged at what I am learning. There is no communication with the owners and very few owners even care. We have many foreclosures. We have 75 townhomes with many owners in serious arrears, our buildings are 35 years old and all need major repairs (roofs, siding, decks, stairs). Our President controls everything and has all records on her home server and no one else has access to
any information. We have investors buying up our foreclosures and renting them out Section 8 which is causing an increase in crime, major litter, drugs,
children everywhere destroying the common grounds. Our parking areas are part of our common grounds and I suggested that we tow cars for owners in arrears and units that are leased without the owners complying with our by laws, but was told that we can't do that (???). I am one of several owners that has always paid HOA dues that is considering to stop paying because it seems that there is nothing that can be done to the owners that either can't or just won't pay. The attitude that is developing is
why should I pay when others aren't and nothing is done about it. We are a mess in every possible way. Are there any orgnizations out there that can help. We seem to run month to month and any money that does come in is paid out with nothing left over (apparently the word budget is not in anyone's vocabulary). I would sincerely appreciate you passing on any information that you receive and anyone else out there that can offer suggestions.
KarlD

Board Education has been a big challenge as well as compliance with ACC restrictions and owner apathy. We have 3 sets of covenants for a 4600 acre; 30 year old sub-division, which means 3 three-member boards, 3 sets of By-Laws, etc. When the developer sold all the lots and left the administration with the Boards, the members were not familiar with the CCRs they were supposed to use to govern. There were quite a few messes to clean up in later years. We have defended 3 lawsuits because of the vagueness of our CCR's and the confusion of having 3 of them.

We recently tried to merge the three associations but needed 2/3 member approval of each association to accomplish it. We got a little over one-half - even though everyone we contacted thought it was a good idea.

Of the 315+ property owners we have, only about 40-50 attend our annual meeting. Apathy is a big problem.

We recently developed a great web-site that keeps our membership up to date and informed so I am hoping it will also create some interest and get more people involved.

Not many challenges other than the usual apathy by membes.
But on a positive note I have 19 empty units out of 307 units and we have relined the empty houses against the banks. We have also notifed the Real Estate People and the banks that we intend to refuse them entry into the HOA ( We own the streets and the roads )if they dont start cleaning up there pig stys. We also call Code Enforcement at the city level and our state folks.
rep julio Robinan is introduceing a law that banks and lending institutions pay just like the rest of the members so write him a letter fols dont wait for some lawyer to screw this up. There is a copy on the home page of this web site................We lien a house at 180 dollars owed us our service adds 1500 bucks to the amount and it starts there our service has access to the Banks Software to find out what date they intend to foreclose so we dont get stuck with bad money cases. Its a great service and even with the 17 empty houses the money that comes in exactly balances the money paid out nice balance we took on this service 10 years ago and it light of whats happening now we are in great shape.....**** and online access stopped all the problems with everything in my world as Treas.............
Jack Murphy

My biggest problem is the other board memebers not taking intrest, nor our management company over important issues I have especially my building. I have to take pictures and show them what damages are happening before anything happes. I feel if we do preventive maintenance now, it will cost us much less if we let things progress. The mgmt company just seems not to care and this is the 3rd company we have hired.