What did I get myself into? - Any advice would be great

Started by MichaelT7 • 8 replies • 2037 views

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MichaelT7 (New York)
Posts: 9

Posted:

Ok, I guess I'll start off by introducing myself. I just found this forum yesterday. Here's where I could use some direction. Yesterday was the annual homeowners association meeting and I was nominated for the board and I accepted. This morning, the president of the association comes over and says he wants to step down and asks if I'd be willing to be the president and deal with all the responsibilities as he's been the president for most of the last two decades.

Here's my concern, I've only lived here for 3 months! I haven't been on the board in the past but for some reason they want me to be president. Granted, we are a small development as in under 30 units so there's not a lot of people vying for the job I'm assuming. I guess what I'm asking is what should I be expecting with this? I know there are some projects that need to be done like painting next spring, and from what they tell me our sea-wall is in need of repair and that could cost a lot of money. According to the accountant's report the finances seem to be healthy enough. Any guidance that any of you more experienced HOA people could give me would be greatly appreciated.

Oh, and I look forward to getting to know people on here better as well. Thanks.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Michael,

First of all, let me welcome you to this forum. There are a lot of great people here. Some have very many years of experience being board members and dealing with HOAs.

The usual procedure is for the whole board to decide which board members will serve in the officer positions. A board meeting is usually held immediately after the annual meeting or w/i the next few days to make these appointments.

As a new board member you will want to thoroughly familiarize yourself with the governing documents: the CCRs (covenants), bylaws, articles of inc and the rules/regulations. Also you will want to familiarize yourself with any state laws pertaining to HOAs and also the State nonprofit corp statutes. The HOA BOD must not only abide by their gov. docs but also State and Fed laws.

While I think it says a lot for you that the Pres wants you to be the new Pres, being new to HOAs and also a new member of this HOA, I would think twice about accepting this position. Although all decisions should be made by a majority of the board, the Pres is the fall-guy for everything and also the leader of the pack, so to speak. You will need to know how prepare an agenda for the meeting and also chair the meeting. You say there are several projects that will need to be undertaken. This may require sending out bids and entering into contracts. The finances may appear to be healthy but is there an adequate reserve fund in place to take care of these projects? If not, then a special assessment may be required which would mean a vote of the members for the approval thereof.

You said your HOA is small, with under 30 units. Are they condos or single family homes? Also, am I right in thinking you are self-managed -- no mgmt co (property mgr), right? If that is the case, that means the board members perform all the duties of running the assn. All the more reason to have a Pres who is familiar with the community, not to mention the gov docs, and knows how to be an effective leader. I'm not saying you do not possess leadership skills. I'm only saying that you may want to think twice before accepting the Pres position before you are thoroughly acquainted with the community and know and understand the gov docs. On the other hand, if the other board members are good workers, perform their jobs competently, and know and understand the gov docs and state laws (in other words, they don't serve "in name only"!!), this would ease the way quite a bit for you take over as Pres.

Good luck in whatever your decision is. Know that you can come here anytime and ask questions. We will gladly give our opinions.

JonD1
Posts: 2,350

Posted:

Michael:

After living on the property for just 3 months and having just joined the Board I don't think the President is doing you any favors.

How many owners were present at the annual meeting???

How many members make up your Board?

How well do you know the President?? Other members of the Board?

Does the President plan to remain as a property owner?

I just wonder why the President would pass over the rest of the members and wish to dump this in your lap.

Something just doesn't feel right about this and I would think it through very carefully and do some research as to who serves on the Board. Some history of the property. And perhaps determine the motivation and motive of the President in this matter.

IMO as an owner for 3 months and having never served on a Board before, you would certainly not be my first pick to run the operation of my property.

Nothing personal but I would neither allow a doctor on his first day to operate on me.

Have you made a decision???? I would be careful and not allow the "honor" of the moment blind you to the reality of taking over this role.

Not much to do suddenly becomes more than you ever bargined for.

Where in NY are you located?????

Good luck and if we can help more let us know.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

MIchael,

Your board's directors may have limited abilities at serving as president of your community HOA and the recognize the limitation. Therefore, the new person can be president (as evidenced by the fact that the current president may have - may - have found a person who could be trusted to be president). So, maybe you have a good reputation or your career experience lends the perception that you can handle this.

As President, you have options with your board and its handling of community duties. The pace of projects getting accomplished can operate around your comfort level. You already have a game plan for needed work and have reviewed your HOA's finances. That's an excellent first start. If you're leaned on heavily to speed things up, remember the board placed you as president as a new arrival.

Take your time and rack up small project victories while staying on budget. Resist the instant urge to spend your Reserve Fund savings on projects. You'll find a dozen things that need doing, pick your maintenance goals.

Take it easy until you learn the ropes. Make no apologies if you need to slow down a half-step. Never forget that you're just a volunteer and place limits.

You will be fine as president.

MichaelT7 (New York)
Posts: 9

Posted:

Thanks for the advice so far. It does seem like a bit of an interesting situation and I must say I was kind of taken aback with the offer, heck I was surprised enough to have been nominated. I'm actually the odd man out here in this development as I'm the youngest by several decades. I can understand the current president wanting to step down as I think he's tired of it, and he's easily into his 70's by now. Honestly I don't think anyone else seems to want to step up to the plate so I guess I'm it. As for me, I'm a 20-something guy and I own my own business in town so I guess they see something in me.

As it stands now, there's going to be 7 board members which is the max, and I think that's a lot as that makes nearly half of the units that are owner-occupied (there's a few that are rented, one that's vacant and one that's for sale so she doesn't want to be on) are board members. We don't have a property manager as we are self managed. Main fixed expenses are lawn care and snow removal (which can be a bit seeing as we are on Lake Champlain in Northeast New York). Those are easy to deal with however my concerns are going to be the big things which are looming. The complex is 20 years old, so I know there are things that are going to need attending to. I'm going to take the position although I'm assuming there will be a vote, which I'm sure won't be an issue if they are specifically asking me to run.

I'm sure I'll have a lot more questions coming up, thanks again for the advice.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

MIchael,

If your HOA budget can absorb obtaining a property manager to help with bookkeeping and facilitating your "handyman" needs, please explore it.

You don't want to be the community foreman, handyman, bookkeeper and dues collector IF those responsibilities fall to the president only. Just from your brief biographical sketch you've offered, I can read the tea leaves.

JonD1
Posts: 2,350

Posted:

Michael:

So the answer was you did in fact agree to take the job.

Sorry to rain on your parade but I see trouble down the road.

As to the actions of the former President I don't agree this was in fact the way to handle this at all. Perhaps, he could have stayed on a for a while longer and worked with you till you had some idea of what the position required. Or perhaps you might have held out for that before you decided to accept. Negotiate YOUR terms not his. There is some reason this needed to be done as quickly as he has done it and none of them are good.

The remaining members of the Board who might allow this well I would guess any one of them would be more qualified to serve.

As you have no real idea what is required day to day in operating this property seems you have jumped in with both feet. I was taught many yearts ago when faced with a decision that requires more thought you simply say "I'll get back to you on this."

First you were picked to serve on the Board with no knowledge of the property's operations and then the President decides you should now take on his position.
When people bail out the plane just might be having mechanical difficulties. And the fact no one else wants the job might suggest no one wants to sit in the pilot's seat on the way down.

Good luck and let us know how things go for you and your property.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Michael,

Not to rain on your parade and certainly not make light of your qualifications, but many HOA boards are made up of corp. execs (many retired) who don't know a thing about running an HOA. Like I suggested in my first response, please take the time to thoroughly review -- and understand -- your gov docs and the applicable state laws. Without this knowledge you will definitely be a "fish out of water". Also, don't be surprised to learn that your fellow board members haven't taken the time to do this in all the years they've been on the board. Nothing like the blind leading the blind!!

RogerB (Colorado)
Posts: 5,067

Posted:

Michael, congrats for stepping forward to serve on your HOA Board. I greatly appreciate all who are willing to serve. Becoming President without prior experience in the operations of your HOA will be difficult. You may want to ask the past President and the other Board members to assist as much as possible.

Looking back as my first term as President of an HOA, the first step was to buy Robert's Rules of Order to become acquainted with the proper conduct when Chairing meetings. Simultaneously, I reread the Covenants and the Bylaws of the HOA. That was a single family HOA of 420 homes which had limited amenities. If your 30 unit HOA is a Condo or Townhome Association, I strongly recommend your Board hire a Managing Agent to handle the daily operations. Otherwise, as President you will be loaded down with many maintence problems which will require many hours every week.

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