Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Monday, May 18, 2009

On the Nature of Community

There have been statements made at various association meetings about “community”, but there has not been a general discussion. That would be useful, as each of us probably has a different perspective of what it means to be a unit owner member of a condominium “community”. Our renter occupants don’t have the same issues or financial stake that the resident owners do, and remote owners may also have a different perspective. The statements and comments that have been made do not always make the distinction between being a member of a community and being a neighbor. But the terms are sometimes used as if they are the same.

Listening to the remarks of the past year has provided an opportunity for me to reflect on the nature of community, as it applies to BLMH. The statements and comments made during the association meetings allude to perceptions about the nature of community and of expectations for other unit owners. I don’t agree entirely with the direction and tone of some of these statements. However, I do understand that we are all neighbors and we are all members of a community.

As this is a public blog, I suppose I should provide some background for anyone in the “blogosphere” who drops by.

Living in a condominium community is unique. It is somewhat of a hybrid as are the unit owners. When I am in my unit, I am the owner, very much like a homeowner, and within it I have certain financial responsibilities and can make certain decisions. The areas which are for unit owner personal, private use are legally described as their unit or as "limited common areas", such as a patio. However, as soon as I exit my unit and "limited common area", I enter the “common areas" which I share with my fellow owners, and in those spaces we are all equals. There is little physical separation between us. As our streets are private, most of the people I pass are unit owners. There are rules and regulations which govern the actions of unit owners and their surrogate renters when they enter these common areas.

As a unit owner, I am responsible for maintaining and decorating my unit, and that includes the windows and the door. However, it is our association fees that pay for the maintenance of the common areas, which extend with only a few exceptions, from the door of my unit to the boundaries of BLMH. Homeowners normally save for major maintenance repairs such as roofing, exterior painting and woodwork, sidewalks, driveways and also use and maintain lawnmowers, snow blowers and the like. Unit owners do not directly do so. Our association saves a portion of our fees each month and hires contractors who perform all exterior maintenance and repairs. Our elected Board of Managers is responsible for determining savings rates, and for dispensing funds and hiring services. Members of our Board of Managers are each unit owners; that is the only prerequisite. They are volunteers who are elected by the unit owners, serve a specific length of time and may, or may not be re-elected. Our Board of Managers are to represent us, the unit owners. They represent themselves only to the extent that they too are unit owners; or that is to say, they are not supposed to represent their interests over ours. Each unit owner is a unique human being with differing viewpoints, opinions and life experiences. Those differences extend to how, why and when association funds are to be saved and spent. The range is quite broad, believe me!

So as a unit owner, I have little choice about when and how much is to be spent on repair, replacement and maintenance of the common elements of the association. The Board of Managers makes all decisions pertaining to these things. However, a homeowner has much more decision making ability. So a homeowner may decide to hold off on a painting job, or attempt to stretch his or her budget by putting off that roofing replacement, or may decide to make simply a repair with the intention to sell in a year. A unit owner cannot make those decisions. So a unit owner has less financial flexibility than a home owner when it comes to certain budgeting items. However, it is not all one way. On the bright side, if the roof of my unit fails, or the driveway heaves, I don't have to come up with the thousands of dollars (or tens of thousands) assuming my association has done a good job in building up its financial savings or reserves. So I am insulated from that. Nor do I have to replace my snowblower when it fails or have the savings to do that. The association has the savings. Of course, when there are "deep pockets" there are also differences on where and how the money should be spent. Unit owners have been known to coerce boards to spend money on "their" units, and associations have been caught hiring friends and family members, or friends of friends to do various aspects of the work.

So as I see it, condominium unit owners are much closer to being apartment dwellers than they are to being home owners. I have been an apartment dweller, a home owner and a condominium owner, and that is my experience. Apartment dwellers and condominium owners share some similarities. We have no sweat equity regarding the structure or the maintenance of grounds and we do not make day to day decisions pertaining to saving, spending and allocation of resources on the property. At BLMH we are well insulated from this by our very powerful Board of Managers, who do make all of these decisions and have for 30 years. If there is a dispute or disagreement, there is no property line to enforce or buffering space to my home. Nor is there a landlord to go to. Instead, we have to sort things out for ourselves and if we can't, the ultimate arbitrator is our elected Board of Managers. However, they cannot or should not represent any one of us or take sides in disputes. Nor can they intervene when differences occur between unit owners, or owners and renters, unless the dispute falls over into areas defined by our rules and regulations. There is no subjective "right" or "wrong" side to choose, nor should there be. However, our board can provide a neutral space in which owners can share their grievances and concerns, and our board is empowered to enforce the rules. They may formally change the rules, but only by motion, seconded and voted upon by the entire (quorum) Board of Managers. They can listen, and provide guidance, but they are not required to act in disputes, unless there are rules violations. With few exceptions, board meetings are open to all unit owners; while this is a "public" forum, the unit owners are observers, and are not a part of the discussion nor is the meeting a debate between unit owners. The board may call upon a specific unit owner or unit owners for information or input. Otherwise unit owners are to remain silent and simply observe, until called upon during the "unit owner" portion of the meeting.

However, it is an imperfect world and interestingly, it seems that when the rules and regulations are enforced, these are sometimes viewed as “oppression”! It also seems that some unit owners have decided what is right, which sides are to be taken by the board and are willing to elect their representatives to see that their standards become law at BLMH. The mantra was "Change" and it is here, and with it our community is changing. Our community is the result of governance, and of monies saved and sometimes not saved, and then spent to maintain and enhance it for the past 30 years. Some of our Board of Managers are quite explicit about their desire to maintain the "look and feel" of BLMH, and have stated clearly their desire to maintain the buildings and grounds, and replace deteriorating components, sometimes with an upgrade to avoid recurrences. Others on the board are very opaque and may have no interest at all but to answer to a few. It is not possible for me to predict what this community will be like 30 years into the future. I am absolutely clear that actions taken by our Board of Managers this year, the next, and the next thereafter will impact the quality of life here at BLMH. And that will determine the nature of "community" and who my neighbors are, and if they will be unit owners or renters.

After attending association meetings and listening to some of the statements made, and after last year's elections, the differences extend to our Board of Managers. I would really like to hear our Communications Director's precise definition of “community” as it applies at BLMH and what “being neighborly” is. That transparency has been lacking, but the statements made since September imply some code of conduct is expected. Provided with this information, I could then determine, as a unit owner supposedly represented by the Board of Managers, if I can accept her perspective and the actions that she is and will be taking on the Board to express her personal viewpoint. As I stated in writing to the candidates during the recent election, the word “change” is very broad and is a term I cannot blindly accept. I want to know what specific changes are anticipated or envisioned. Again, that transparency has been lacking.

These are not idle thoughts. I have concerns and I would like to be living in a community where my rights as an owner are as valid as those of any one of my neighbors. I would like to think that if any of us presents a dispute or a maintenance issue to our Board of Managers, that we will be heard with the same deference, sincerity and respect by all members of the board, and that our requests will be treated equally and impartially. However, our community and our Board is changing, and I don't believe we are all viewed as equals, and some of us are becoming second tier citizens. I find that amazing, as the campaign materials stressed equality as in an association “where we all can be heard”. I assumed that meant we would all be heard and viewed as equals. I was wrong, but who is viewed as "right" or "wrong" before a compromised board does not yet interfere on a day to day basis with my life here with my neighbors.

However, to return to the question of community and of being neighborly as a unit owner member of BLMH. I suppose this would occur for me as "What is an appropriate way for a unit owner to exist in this community?" which is to say, "How to be a responsible member of the community"? This question can be posed within the context of the long term plans for this community and rephrased is: "What am I, as a member of the community, doing to assist our community in reaching its goals and to achieve that which is expected of me"? This of course, requires knowledge of those goals and the expectations.

So in the spirit of discussion, what, I rhetorically ask, are the actions appropriate for and consistent with being a unit owner member of the community at BLMH? In an inquiry, both the questions and the answers are important. Together, they can reveal the nature of our community and our positions, expectations and personal biases regarding it.

The following link will take you to a list of questions and statements. As you read them, consider if they are relevant to a discussion on "community".

Go to the List of Questions


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Note: The list of questions were originally part of a single, very long post. I have broken it into two seperate posts, after receipt and review of a comment. I sometimes write the posts over a period of days or weeks, and when they reach a certain state of completion I then publish them. I attempt to space the intervals between publishing so as not to inundate any readers. I'm going to attempt to shorten the length of posts and publish more frequently.

1 comment:

  1. This is a long blog. Why put the good stuff at the end where it is difficult to find?

    ReplyDelete

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