Governments have problems. The leadership of city, state,
and federal governments is populated with people that are largely untrained in
the broad variety of topics put before them. HOAs are a form of government but
like no other. The entire membership has a direct interest in the outcome of
how well, or how poorly, the HOA business is run. This isn't the case in the
other forms of government where there is little individual voters can do to
make changes. Not so with an HOA. With some effort, HOA members can oust the
board or vote in a new bunch.
There are other controls. The governing documents can only
be amended by the members, not the board. That is real power. Doing that with
the other forms of governments is not possible. Since voters are little control
over what their elected representatives do, most don't pay much attention or
develop the attitude that "whatever they do doesn't affect me
personally". Of course, that kind of thinking is exactly why elected
officials get away with what they do.
HOAs have actually brought us much closer to the way things
used to be when democracy was more accessible. An HOA board is only able to
lord over the members if the members let it. But HOA members have a real and
viable way to gain relief from oppressive government. It does take some effort
to gain that relief but the means, at least, are there.
Fortunately, the majority of HOAs are relatively well run
and the community harmonious, in spite of being run by amateurs. And the
amateur boards that get educated on the process really shine! But most boards
still have room for improvement in the communication department. The core
philosophy here is "Transparency". Do not operate behind closed doors
or withhold information that every HOA member is entitled to see. (There are
exceptions to this rule, but the list is short: ongoing litigation, employment
issues, competitive contract bidding). Here are several ways to keep the body
politic transparently in the know:
Annual Planning Calendar. This is a multi-use document that
combines meeting, social and maintenance dates all in one place. Meetings
should be calendared a year in advance and major maintenance well in advance so
that residents can make alternate plans.
Email. Pre-Y2K, there was still a significant amount of the
population that was internet challenged. Today, few make that claim. Even the
seniors have invaded Facebook. Make use of this reality by communicating that
way to all that want it. Save time and save money.
HOA Website. If your HOA does not have a website, run, don’t
walk, to one of the many providers that specialize in user friendly HOA
websites. Basic websites which would work for most HOAs are available for less
than a $1 a day.
Open Meetings. All HOA members have the right to attend
board meetings. The fact that most don’t doesn’t mean the board should not
advertise them and hold them in guest friendly venues.
Circulate the Meeting Minutes. All HOA members have the
right to know what the board is up to. Make DRAFT minutes available within a
week of each board meeting.
Make Financial Reports Available. All HOA members have the
right to know how their money is being spent. Make them available upon request.
Have and Follow a Reserve Study. This 30 year plan charts a
course for the board to follow for scheduling major repairs and a funding plan
for accumulating the money to pay for it. If you don’t have one, contact the
Association of Professional Reserve Analysts www.apra-usa.com for a list of
credentialed Professional Reserve Analysts (PRAs) that can provide this
invaluable service. Oh, by the way, the HOA members are entitled to see the
reserve study because, again, it’s their money that will be paying for those
repairs.
Newsletters. Publish quarterly newsletters to remind of
frequently violated rules, contact information, upcoming projects and meetings.
It doesn’t need to be a major production. One or two pages will do. Send it by
email to reduce cost.
Board transparency will reap great rewards by building
confidence and trust. This is one glass house that will clearly show that the
board has nothing to hide. This emperor is fully clothed.
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