Establishing Programs, Initiatives, and a Vision or Mission Statement

One of the things I have discovered is that some owners, and even the board, will be an impediment to "getting things done."

Before the reader gets excited by this statement, I'd like to provide a context. Also note that this post is based on several years of observations. Not specific events.

There seems to be a tension or opposed forces at work here. I am referring to one approach, which I would call the "reactionary" or "don't fix it until it breaks" approach, and another which I will call "preventative maintenance" or an approach that favors the establishment of planned programs.

While this may appear to be something which is limited in application, it can be applied to many other areas. It's about planning and preparation as opposed to reacting. Oops, there I go on my soap box, again!

There are a lot of reasons to advocate a "reactionary" approach, and I can see the attraction for board members. This technique is probably learned first at home and then "brought the to office." First, it is the easiest for the board to implement. Sit back, and wait for the next problem, make a quick decision and delegate! No management or planning required! One perception is that using this approach may save money. Another perception is that by taking no action that is not an absolute necessity or "reacting," it may be possible for the the association, which is to say the board and management, to delay dealing with problems until such dealing becomes an absolute necessity. i.e, less work to do and not much thinking. Deal with the cards as they are dealt, as it were.

Boards can take the above approach with just about anything. Rules, for example, may not be enforced unless an owner complains about a violation. Mechanical or other problems may be delayed or avoided until something actually breaks, or an owner is inconvenienced. The operating philosophy could be "If an owner doesn't complain, then don't do anything." Hmmm! Has that happened here?

This approach may create the illusion of "saving money" as reserves grow. In reality, it pits owner against owner, creates additional expenses as repairs occur as breakdowns. In the "real world" how many "breakdowns" wait until Monday 9:00AM to occur, rather than occurring at 11:59PM on Saturday? Weekend problems become overtime repairs, at substantially higher cost, and inconvenience. Delaying needed repairs, for example, roof repairs until leaks occur may inconvenience owners, create interior damage, and require the replacement of damaged and water soaked plywood roofing and possibly framing and insulation. Mold can also be the result.  Owners can become unhappy or downright frustrated if problems are not resolved. I'm not talking about "My stoop is crooked" type problems. I'm alluding to "My building is settling and I have half-inch wide cracks in  my ceiling" or "Every time it rains I get a mini flood in my bedroom" type of problems. Unfortunately, if a board operates from the perspective "we are here to keep those owners who complain very happy" you can see the tension that creates.  "Where does my money go" may become a battle cry. Animosity may occur when one owner gets repairs because he or she came to association meetings and complained, month after month after month. "The squeaky wheel gets the grease" and the complacent owner gets short shrift.

Of course, certain owners, like the mice who are trained in laboratories to work their way through mazes, will discover this game and will use it to their personal advantage. Do we have owners or renters at BLMH who would do this? Attend a few association meetings and find out for yourself, and learn a few tricks from the masters!

If the issue is maintenance related, problems cascade and costs escalate. Those unrepaired items are waiting, effectively an "account payable" and are problems waiting to happen. Meanwhile, a sense of overconfidence may occur if the owners and the board, seeing the reserves grow, don't keep a list of maintenance problems to compare to that "mound of cash."

Consider also that there is board turnover, and that when this occurs, information may be lost. At BLMH we have a professional management company and a manager. We also have professional maintenance. That provides some continuity. But new boards may, and do, have their own approach to doing things. New boards sometimes scoff at the "old guys and gals" and deliberately shun them and their information. Things as simple as contacts at vendors and different city departments, may be lost. What about lists such as the one I produced for the purpose of rating garage floors? Are you aware of a "Board Members" manual for BLMH? There is one, but it hasn't been expanded and updated, and many documents were shunned by later boards. There is no concise statement of what board members can expect and what their accountabilities are, as fiduciaries. Nor is there a list of "duties and responsibilities." (Note 2). For example, the "Board Member Oath" which included the statement "11. I will not make public statements without the express authority of the board" and "12.  I recognize that I am a fiduciary on behalf of all owners and in all decision-making by the Board I will attempt to use sound business judgement." was replaced by a recent board with the CAI "Rights and Responsibilities for Better Communities - Principles for Homeowners and Community Leaders." That document stated that Community Leader are to "Fulfill their fiduciary duties to the community and exercise discretion in a manner they reasonably believe to be in the best interests of the community."

I had a big problem with that document. It's fine in my personal life to operate in the domain of "should" or "could." However, when I'm operating as a fiduciary my personal "beliefs" have no bearing on accomplishing my duties and responsibilities. I think the "neighbors club" can and should operate from the principles set forth from in the CAI document. I think the board should operate as fiduciaries, take the competent advice of the professionals, including our attorney and our management company, and take responsibility for our actions as a board. That means, we don't have "roles" to play. We have "duties and responsibilities" to accomplish. New and current board members should understand this.

Losing the Path
This can occur with rules which become obsolete or are not kept up to current standards and mores. The "welcome packet" which is a wonderful booklet, may not provide information in a way it may be readily absorbed (Note 1). In my working life, I have to absorb and teach a lot of really obtuse and difficult stuff. Believe me, how information is presented, and with frequent repeating, has a large bearing on how information is retained. You may "know" or be proficient at something, but telling me about it has no assurance I will also "know" something after you stop telling me about it. Learning is an interesting and at times, difficult, process.

If you think that what I am describing is fiction, you are incorrect. I've seen this occur here at BLMH.

An Alternative
Creating standards, descriptions of board member "duties and responsibilities" and other information to augment that of our managers and professionals, can be helpful to a board in accomplishing its tasks. Creating a program of planned upgrades, is also helpful. A framework for such a program does exist at BLMH. For example, exteriors are painted and repaired on a multi-year schedule. Balcony railings are being replaced on a schedule. So too for spalling columns for garages.  I'm unaware of such a schedule for replacement of hallway carpeting, or for limestone replacement of brick window sills, and we know that there is only a very rough schedule for roofs. How about patios? What about drainage issues? How about underground water mains which pass under roads and driveways? Should they be replaced when roads are replaced? Should we have a "tree bank?" What other programs are lacking?

None of this can be planned, or can occur, if the goal of the board is to wait until it breaks. If the water main fails after the driveway it passes under is replaced, too bad! So too if it passes beneath a road. Do we have sufficient B-valves on the property to isolate different sections? If not, perhaps they should be reviewed and added, to permit isolating failures when they occur, rather than shutting off the water to more residents than is necessary.

All things to think about. Or not!

I am a proponent of the creation of a long term vision for BLMH and of a brief and concise mission statement.  Will that happen? Or will we go back to "shooting from the hip" in September?

Comments, Corrections, Omissions, References

Note 1. I had a conversation with a new owner who had been given a copy of the "Welcome Packet" several weeks prematurely by a board member. Did having that information prove helpful to the owner? Well, one day after the closing, this person called me and began asking a few basic questions. I concluded that the information in the packet had not been fully grasped. So I gave a 10 minute "Owner's Introduction to BLMH" and covered all of the basics, from utilities to fees to TV to landscaping, keys, who maintains doors, the role of the board, and the end of the owner's domain which is at the extreme of their patio, etc. I asked "Have you walked the property?" and when the response was "No!" I proceeded with a description of the grounds, etc. I provided a brief description of how to communicate with the property management company, etc. 

My point is, this kind of dialog could probably take place which each new owner. Or, in it's place, perhaps a "summary" document which spells out the basics.

Note 2. It's possible to make such a document. One has been written and the board is currently reviewing "HOA Board Member Duties" a document prepared by the current board as a guide to new members.