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AlexL1 (Florida)
Posts: 305
Posted:
I have wondered in amazement. Why is it that when a homeowner is NOW a new member on the Board, they go bizerk?(not all but certain ones) The first thing they want to do is spend.... spend.... spend. Spend on what? on things that are totally(keep in mind the word TOTALLY) unnecessary.... but they are not satisfied within themselves until they spend.When that individual is NOT on the Board, they are concerned about money being spent foolishly by the HOA BOD but after on the Board.....different story. I am serious when asking this question as it is prevalent and presents a very serious problem particularly in these difficult economic times.
JohnO6 (Georgia)
Posts: 424
Posted:
Alex -

I'm not sure exactly what type of response you're looking for, but I do detect a presumption on your part about how common this behavior actually is.

No doubt you've seen it happen - and perhaps more than just once or twice - but I'm at a loss to think that this could actually be a very frequent occurence.

In clinical medicine, one of the most powerful molders of opinion is first hand anecdotal observation!

In fact, a somewhat jocular saying (that often actually is truer than most scientists would admit) is:

"One half-cocked observation by myself is worth more than 10 double-blind, placebo controlled, randomized trials."

Just saying .. .. ..
TracieS (Colorado)
Posts: 460
Posted:
I certainly concur with John on this one, that this is NOT as common as originally posited...however, for the sake of answering a "serious" question...

When homeowners are just homeowners, all they care about is that monthly/quarterly/yearly check they send in... They don't know what it's used for...and 9.9 times out of 10 they could not care less.

When homeowners sit on the board, they see all the repairs that need to be made, all the ways the community can be improved, and most often, repairs and improvements cost money.

Another explanation...

Your dues (like mine) have been held artificially low for YEARS. Once on the board, a homeowner sees the disaster looming on the horizon, and actually tries to avert said disaster...usually by campaigning to bring the dues up to a reasonable/fiduciary responsible level for the actual operation and reserve expenses.
BrianB (California)
Posts: 2,820
Posted:
simple. as you point out, when they are not on the board, they are concerned about the money being spent foolishly, ie, on things not important to them.

when they get on the board, they have a chance to spend the money on things that ARE important to them.

there's no change in psychology... they are the same person. they always wanted to spend money, just not on what YOU think is important.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Alex,

I don't think you've uncovered a new "type" of board member. What you may have witnessed is a person who, when they were just a member, complained about the BOD's spending not knowing what they were talking about. Now that person is a board member and can see the justification in the spending they once complained about. This happens all too often. I know of boards that were recalled because enough members claimed they were not running the assn properly. But when the "new board" took over they found there was nothing wrong with the old board's actions. They were recalled for no good reason!!!
AnnaD2 (Florida)
Posts: 960
Posted:
I kind of, sort of know the type of person you're talking about. We had a board member who wanted to up the maintenance fees so we could have more "things". Every time we asked what the "things" are we got no response.

When we've tried to get new "things" in the past they were always voted down by the membership. "Things" like planting a privacy hedge and erecting a flag pole. We need 66 2/3% of the membership to approve any new "things".

This former board member also wanted to "upgrade" things already in place. Which is not always a bad thing, BUT she kept insisting all the (expensive) things be paid for out of our Reserves. Thank goodness that last year, here in Florida, they passed laws which prohibit the using of the Reserves for items other than what they are intended. It can't be used as a slush fund. Only the membership can vote (and pass) the approval to touch the Reserve funds for other expenses...the Board can't make that approval alone.

So if your new board member wants to spend, spend, spend, then you have to have the money in the operating account or levy a special assessment or up the maintenance fees to pay for these things.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Another view is that there IS money to spend, in fact, it must be spent OR the budget was wrong and the overflow should be returned to the membership in the form of lower assessments.

Most members don't understand the concept of the budget with the goal of its revenue and expenditures to be in balance.

This new board member MUST learn to follow the budget. If that is a problem, the president should have a one on one with him/her and explain the concept of a non profit corporation.

Still, another view is that previous boards did not use the money to repair/replace things that should have been done years ago. These same people don't change their oil in their cars at 3, 5, or even 7 thousand miles, hoping that they can keep putting it off.
DeeS1 (Michigan)
Posts: 223
Posted:
While my opinion is likely somewhat tainted by a recent bad incident from my own community, I feel compelled to agree with most of the other posters and would encourage you to try to understand why the money is being spent before you object and attribute it to one individual.

Have you attended the regular board meetings to gain an understanding for the discussions and decisions? Or, are you jumping to conclusions about the spending and it's intent and purpose. Perhaps there is some long-term objective you are not aware of? Have the other board members voiced their opposition? How is it that just one board member has the authority to spend, spend, spend?

In my community, and I believe most to some degree, expenses are authorized by board resolution or consensus. If this is not happening, the procedural problem would be the first issue to address. Rarely, does a properly functioning board have any one person that is responsible for ruining the community. Otherwise, if the board is acting with proper authorization and you don't like it ... looks like you should consider getting on the board next go around.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susan,

Alex did not say that they have money sitting around, only that the Board wants to spend money. As Anna has said, Reserves in Florida may not be spent on anything other than what they were set up to pay for unless the membership votes to use the funds for other items. We need Alex to tell us what money he is referring to unless it is just a hypothetical example.
MaryA1 (Arizona)
Posts: 7,043
Posted:
I didn't get the impression Alex was complaining about money being spent by the board. He was just asking why a person changes their outlook once they get on the board. In other words, when a non-board member they complain about money being spent but once they get on the board all they want to do is spend money.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
I think all would agree, a new member on a Board rarely is capable of doing a good job. Most folks need a learning curve. It is not by accident the election terms are staggered.

In my opinion, a new good selection that joins a well managed old board will have a shorter learning curve. Give them some time, a little help and if the rest of the board is on the right track it won't be long that they can see how best to get things done.

Now a new Board member joining a bad board.....they need your prayers more than your criticism. And of course your interest and support and knowledge.
MicheleD (Kentucky)
Posts: 4,491
Posted:
I echo Robert. On both sentiments.
CharlieM (California)
Posts: 42
Posted:
Robert nailed it.

I have found good boards understand and respect the laws and rules. And bad boards do not.
RobertM18 (Michigan)
Posts: 2
Posted:
The psychology is simple. You would rather stand on the outside bitching about those who volunteer to help than to actually volunteer yourself. How's that for an explanation.

Spend on what? You tell us, you should have a financial statement showing actual versus budget.

Do you have a single example of something that is "totally" unrequired?
AlexL1 (Florida)
Posts: 305
Posted:
Yes, RobertM18..... one of several examples is:....we have 18 fire hydrants that are only 6 years old and in great shape. That person(just one example) wants to use our money to buy ALL NEW ONES.... why? no reason but to get new ones.
AlexL1 (Florida)
Posts: 305
Posted:
Right on MaryA1: Yes, money is important... very important in these financial times butit is going out to spend JUST FOR THE SAKE OF SPENDING.. and on items costing $100,000 or more just for the sake of spending.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By AlexL1 on 11/19/2009 5:56 AM
Yes, RobertM18..... one of several examples is:....we have 18 fire hydrants that are only 6 years old and in great shape. That person(just one example) wants to use our money to buy ALL NEW ONES.... why? no reason but to get new ones.

Alex, please don't take this wrong, because I don't know you and this is not intended personally at all, but I just can't buy into this.

There has to be more to this than simply wanting new ones. Unless this man has a vested interest in a company that replaces such things, it is completely illogical for that to be the only reason for wanting to change all the fire hydrants.

Could it be possible that there is a problem with either the way they were install, where they were installed, or a defect in some way of which you may not be aware?

That would be a more likely driver of a goal to replace the hydrants.

I have no clue, I'm just wondering if there is more to this than has been presented, even to you.

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