Austerity Program - April 14 Email to the R&R Director

Sorry for the delay in responding; there is so much to do, and so little time.

I do need a response from board members to some emails; it may simply be a "yes" or a "no." For example, is an austerity program something this board is to pursue? Ditto for a "sales and marketing program."

Yes, I understand [our treasurer] will present a letter [during the April board meeting]. It will be the first of several to owners. The letter serves several purposes, including a "heads up" to owners who are in arrears.

I apologize if I seem harsh, at times. I am willing to be accountable for my actions, and the consequences, thereof. If you ever want to discuss my actions or have issues, feel free to call me at any time. Yes, I am busy, but I will either tell you a time at which I can talk at length, or handle your call immediately.

I feel a sense of urgency. We are three (actually four) years into a very serious economic decline. It is not over, yet. Some would like to pretend that it is. I am not one of those. I am concerned that as this economic malaise continues, it will further stress owners. Anyone who is living off of savings will eventually run out.

I am completely aware that there are retirees on SS who have had no COLA benefit for two years. Many other working people have not have a salary or hourly raise in that time. Many others are working at reduced hours. As a business owner, I am paid with what is left after bills and other salaries. There have been a significant number of years in which I earned less than my administrative assistant. That is not a complaint; it's a statement of fact.

Believe it or not, I am operating from the perspective that all board members are committed partners. However, as human beings, we don't always operate in accordance with those commitments. It is easy to revert to a position that "I" or my needs, are to come first. I am operating from the position that I am a fiduciary; in association matters, my commitment as a fiduciary comes first. I do have difficulty honoring that commitment, and simultaneously honoring the individual owner. I always ask myself "what is the appropriate action, consistent with the needs of the association."

I do have a vision for this association, which is only a possibility.

I coined an expression some years ago to sum up that reality: "God loves us, but the universe does not care." So things don't always go well, and good people sometimes experience difficulty.

By an "austerity program" I mean a formal approach to reducing fees. This may require a curtailment of specific services. In other words, owners may have to give up something, some of those perks they get, to achieve a fee stabilization (reduced increase in 2011) or a fee reduction. Some associations have accomplished this by turning maintenance over to owners. We have done so with "grass seed", on a trial basis. I'm sure you noted [an] owner's complaint in the information packet. They are correct; it's not their responsibility; we can ask owners to "take it on" and they can refuse.

Other associations simply turn over the maintenance of "Limited Common Elements" to owners. In my [Architecture & Maintenance] report, I address this approach; it's really a stealth fee increase.

I am, within reason, willing to consider any approach, as long as the board is fully informed of the consequences, and agrees, which is to say, "makes informed consent." I am unwilling to simply "wave the magic wand" and hope it all turns out. I am unwilling to take actions that will impose avoidable burdens on future boards or owners. Our fees, today, are what they are because boards in the period 1985-1999 made financial [decisions]. That costs me about [amount deleted] each month, and has restricted sales in this association.

Comments, Corrections, Omissions, References

Note 1.  This post will be one of a series on recent issues facing this association and will expand on topics contained in the newsletter.