HOA New Year's Resolutions

HOA New Year ' s Resolutions

By Kelly G. Richardson, Esq. CCAL

TO BETTER BEGIN THE NEW YEAR, MANY OF US MAKE RESOLUTIONS. THIS ARTICLE WILL SUGGEST RESOLUTIONS FOR ASSOCIATION DIRECTORS, HOMEOWNERS, MANAGERS AND SERVICE PROVIDERS.

HOA DIRECTORS

ALWAYS:

1 Follow the Golden Rule. (Paraphrase: “Treat others as you would like to be treated.”)

REBOOT OUR ATTITUDE:

2 We don’t control our neighbors; we serve them. An attitude of service will help us to be less defensive and stressed when neighbors challenge or criticize board decisions.

3 Advocate that our board follows the law and governing documents, spends money wisely and properly preserves and maintains community assets, while also being mindful of the board’s relationship with our HOA community. We will balance the legal, financial, property and community considerations in our decisions.

4 Remember that our positions as volunteers are different than our work. Unlike at work, we cannot fire our HOA neighbors.

5 Be aware that not all neighbors know their rights and responsibilities under the law and governing documents, and we will be patient and willing to explain the rules and decisions.

BE KNOWLEDGEABLE:

6 Review our governing documents (CC&R’s, bylaws, and rules).

7 Review financial reports on budget, reserves, expenditures and delinquencies.

8 Understand the Business Judgment Rule and always make sure the board has sufficient basis for each decision.

9 Encourage my board colleagues to join a Community Associations Institute Chapter and take

advantage of the written materials, seminars and classes CAI offers to volunteers.

IMPROVE BOARD MEETINGS:

10 Help to limit our open board meetings to at most 2 hours with a goal of an average meeting length of 90 minutes.

11 Arrive at meetings prepared and having reviewed the agenda and board packet.

12 Listen attentively during open forum without interrupting, and give our neighbors the same level of courtesy and attentiveness that we expect from them during the board deliberations.

13 Stay on topic during discussions.

14 Meet in closed sessions only when clearly necessary and authorized by the Open Meeting Act.

TEAMWORK:

15 Remember that my power as a director is the ability to vote. Even the president is only one vote. I won’t be a “Lone Ranger” but will be a team player.

16 I will encourage directors to speak their minds. I won’t be insulted because a director disagrees with me.

17 If I disagree with my colleagues, I will try to convince them of my point of view. If the board votes against my position, I will support the board’s decision, even though I disagree.

18 I will let the manager manage. I will not direct management (the board directs management) or vendors (our manager directs vendors).

COMMUNITY BUILDING:

19 Be as open as possible. When a member asks for information or documents, I will first ask “why not?” rather than “must we?”

20 Encourage the use of committees to share workload and provide members opportunities for involvement.

21 Communicate better and more frequently with our neighbors (members) with newsletters, web page updates, e-mails and/or bulletins.

22 Confirm our manager holds a professional designation from an organization such as CAI, and can properly call themselves a California “Certified Common Interest Development Manager.”

23 Try to work out disputes with members before “going to legal.” We can always call the HOA attorney next if our efforts fail.

LAST:

24 Follow the Golden Rule.

HOA MEMBERS

NUMBER ONE:

1. Follow the Golden Rule.

MY ATTITUDE:

2. Not refer to the HOA or board as “they,” since it is all “us.” The directors are also members who pay assessments and give their time to benefit us all.

3. Be neighborly, because shared ownership fails without cooperation.

4. Assume our directors are doing their best as volunteers and give them the benefit of the doubt.

5. Not first assume the board is incompetent or dishonest when I believe it is overspending.

6. Avoid the “my home, my castle” attitude. We share the benefits of common interest ownership, which means we also agree to share the control of our property.

7. Ask questions before making statements, criticizing, or accusations.

8. Acknowledge the board may have more information than me. This doesn’t mean the board is right, but it does mean my opinion might not be fully informed.

9. Take the long view of our association property, supporting growth of our capital reserves fund and maintaining our buildings.

BE KNOWLEDGEABLE:

10. Read the information the HOA sends to me.

11. Be familiar with the CC&R’s, bylaws, and rules. I will reduce confusion and disputes by understanding the use restrictions and rules.

12. Read the association budget and reserve study. I will ask informed questions, particularly about deviations from budget.

13. If I ask to review financial documents, I will not ask for “everything,” and request only documents which I really need, acknowledging my manager is not a librarian.

HELP BOARD MEETINGS:

14. Insist the board follow the Open Meeting Act, and only handle in closed session the limited items allowed by law. I will also help to contribute to orderly meetings.

15. Review the posted agenda before attending board meetings.

16. Organize my open forum remarks, and accept that the

board may not immediately have an answer or response to my questions or suggestions

17. I will use my open forum time to inform the board, not to argue with them, and after open forum I will not interrupt board deliberations.

18. Encourage others attending board meetings to behave with decorum and respect, as we are all neighbors.

HELPING:

19. Join a committee, helping share the load of operating our HOA.

20. If I disagree with the board, I will first provide suggestions and information before criticizing.

COMMUNITY BUILDING:

21. Find ways to enhance our community’s image.

22. Try to resolve disputes with a neighbor or the association before “going to legal.” Legal counsel disputes can fracture relationships for years. Neighborhood resolution is almost always more effective than lawyer action and court orders.

23. Participate in all member votes, even if only by mailing in my ballot.

24. Join a Community Associations Institute chapter, and suggest our HOA encourage directors to be educated members and hire credentialed managers.

25. Frequently find opportunities to thank our directors, committees, and manager for their service to the community.

26. Vote for directors who will have an attitude of service and do things the right way.

LAST:

27. Follow the Golden Rule.

MANAGERS

NUMBER ONE:

1. Follow the Golden Rule.

ATTITUDE CHECK:

2. Remember I am a professional and will give the board the best advice I can. I am not employed to be silent.

3. Strive to give the board the answers it needs to hear regardless if it is the answer the board hopes for.

4. Avoid reacting defensively to upset homeowners and make sure they are informed as to the “whats” and also the “whys.”

5. If the board disregards my advice, I will document it in writing to the board.

6. Avoid being an expert when you are not. Refer the board to the appropriate specialized professional when appropriate.

7. Try to please all, while knowing that I can’t.

BE KNOWLEDGEABLE:

8. Pursue professional designations and attend seminars to keep up to date.

9. Be prepared at any board meeting to explain significant deviations from the budget.

10. Understand the Business Judgment Rule and confirm the board has sufficient information to make each decision.

11. Encourage my board members to join the Community Associations Institute, knowing educated boards are better boards.

BETTER BOARD MEETINGS:

12. Protect the board from overly long or disorganized meetings.

13. Create agendas with consent calendars to quickly handle non-controversial items.

14. Alert the board when an agenda is too ambitious.

15. Become comfortable with the fundamentals of Robert's Rules of Order.

16. Help the board stay on topic and on agenda.

17. Alert the board if it is handling matters in closed session which should be in open session.

18. Bring the HOA governing documents, including all rules, to every meeting.

19. On each agenda item, be prepared to provide a recommendation or recommend retention of appropriate specialized expertise.

20. When homeowners in open forum criticize my work, I will listen respectfully.

COMMUNITY BUILDING

21. Work to increase meaningful and frequent communication with the members.

22. While advising the board and carrying out its instructions, I will focus on the association’s community needs as well as its financial, maintenance and legal concerns.

ETHICS:

23. Treat all members the same regardless of how they treat me.

24. When answering a question from a director, or giving a report, I will communicate to the entire board.

25. Remember my client is the HOA, not its board or president.

26. Will not take sides in elections or recalls, nor assist or advocate for or against any candidate. My opinions will remain secret.

27. Will reject vendors offering kickbacks, gratuities or commissions, and will promptly disclose such offers to the board.

28. Will not give a company related to my employer any advantage in bidding on HOA contracts.

VENDORS:

29. Advise the board when specialized expertise is needed.

30. Will not only recommend one favored vendor, but will provide my board with two or three candidates to consider.

31. Before the board evaluates major or complicated bids, I will suggest a consultant to help the board select the best and most complete proposal.

32. Will recommend the best bid, not simply the cheapest.

LAST:

33. Follow the Golden Rule.

SERVICE PROVIDERS

NUMBER ONE:

1. Follow the Golden Rule.

PROPOSALS:

2. Give the board the best proposal I can. If I think the association’s request for proposal is missing important elements of the work, I will add those elements to my proposal but will also disclose the extra costs of those items.

3. Tell the Board of Directors if they really don’t need my services right now.

4. Explain my recommendations, and never tell them just to “trust me.”

5. Promise only what I know I can deliver.

6. Not seek a contract of more than one year in length, unless there is no way to complete the work in less than a year.

KNOWLEDGE:

7. Pursue professional designations and attend seminars to keep me up to date.

8. Take the Educated Business Partner course from CAI, to make sure I am familiar with the unique needs and characteristics of common interest communities.

SERVICE:

9. Answer the board’s or manager’s questions promptly.

10. Explain my company’s charges, taking no offense.

11. Take instruction only from the manager or from the person designated in the contract.

12. If a homeowner, even a committee chair or director, interferes with the work, I will immediately alert management.

13. If work outside the contract is needed, I will get written authorization for that work for which I have quoted a price.

14. If I recognize work outside my expertise is needed, I will not attempt the work but will immediately advise the association.

COMMUNITY RELATIONS:

15. Always be courteous to every resident, aware that my work might be occasionally disruptive to those residents.

16. Regularly provide updates to the board and management on major projects.

17. Volunteer at no charge on major projects to attend occasional “town hall” meetings to update the membership on progress.

18. At the end of each work day, I will make sure the work areas are clean and safe for the residents.

19. Not start work each day too early, nor end it too late, to avoid disturbing residents.

ETHICS:

20. Never offer commissions to managers, or incentives of any kind. If a manager or director asks for improper benefits, I will refuse and disclose that request to the board.

21. Not give expensive gifts to managers or directors.

22. Never give preferential treatment or free services to directors, but will treat all association members equally.

23. Not advise or assist any homeowners to keep or attain a position on the board. I, as a vendor, will be neutral at all times.

24. If my company has any business relationship with the management company, I will not assume the manager has disclosed it, but will disclose that relationship to the board.

PERFORMANCE:

25. Always carry proof of workers' compensation and liability insurance and will provide that along with my proposal.

26. If there is work requested which my company is not licensed to perform, I will alert the association as early as possible.

27. Stand behind my company’s work and promptly correct any mistakes.

LAST:

28. Follow the Golden Rule.

Kelly G. Richardson, Esq. is a Fellow of CAI's College of Community Association Lawyers and Senior Partner of Richardson Ober PC, a California law firm known for community association expertise. Submit questions to Kelly@RichardsonOber.com. Past columns at www.HOAHomefront.com. All rights reserved®.