Owners and Boards - Part 1

One reader disagreed with this statement: "Most of the owners at BLMH apparently think they live in an apartment complex...." The reader asked "Why does this keep coming up and who has been telling you that this is their opinion? and the reader went on to say"Most people move into a condo so that they can build equity in something instead of paying rent each month."

Before I respond to this multi-part comment I think it's useful to consider the role of owners and boards in creating the culture of a HOA. This post will provide a foundation.  Another will look more closely at the role of the boards, and at the issue and consequences of "owners who pretend they are tenants." I assert this misconception does exist. I also assert there are real consequences for a HOA.

Before proceeding, I do need to state here that this series of posts is not about secrets, hidden agendas or a lack of transparency. If you should read into this series of posts that there exists some dark secret at BLMH then it is my opinion that you are mistaken.

A reader recently commented "I think there's a bright future ahead for this association." That could become reality and that opinion is worth exploring. However, that's for another post, and I caution the reader that if they expect wonderful things in the future, it will require that the owners put into place those things necessary to accomplish such a future. That includes "sweat equity", paying fees and building sufficient reserves for a "bright future."  I assert this is becoming more difficult. I state so because of aging infrastructure, an aging population and delinquencies and foreclosures. Is a "bright future" impossible to achieve? Not at all. However, I would say that under the operational structure (the roles of owners and board members) that has existed in the time I have been an owner here that such a wonderful outcome is unlikely.

That reader also commented "It used to be a lot worse. The major issues Norm had were with the old 2008-2010 board. They ran on a hope and change platform."

I also think it's useful to point out that BLMH is a really unique property in Wheaton, Illinois. With that uniqueness comes costs, and unique problems that require unusual solutions and an incredible amount of attention to detail. It is disappointing to me that after 36 years, there remains significant resistance to fixing some problems that have plagued this HOA for it's entire existence. Does that make sense? How is it that this HOA hasn't found the will do deal with some of these things?

So what about the future?
The future will be better or worse or we'll get another "hope and change" board. Whichever, it will be determined by all of the owners. It is the owners who elect the boards and a very few owners occupy the seats on the boards. Other owners may occupy any committee seats, and it is owners who influence the board. In the end, all of the people of power at BLMH are owners. Not everyone remembers this, and a few prefer to deny it or pretend otherwise.  However, my perspective on the future will be the subject of a another post. The involvement and the attitude of owners is critical to the success of any HOA, and that is why I am writing this particular series of posts. It was but 6 years ago that the banks were failing and the "change" board assumed power.

Boards and Owner Misconceptions
What role do boards play in creating misconceptions? In my experience, boards are not always forthright. My opinion might seem to be counter to popular notion. On the other hand, going back about 7 years, there has been a small group at BLMH which complained about a "lack of transparency" on the part of a variety of boards.

That group also seemed to be comprised of "good news" junkies. I found it to be ironic that they demanded good news and transparency. That is not always possible. Such a group can be manipulated:

1. They will vote for anyone who promises that things will turn out as expected or demanded.
2. The will vote for anyone who promises that such outcomes require nothing on their part, as owners. 
3. They will vote for anyone who promises lower fees, 
4. They will vote for anyone who tells them it is all about board change.

The misconception for such owners is "We, the owners, are just fine and any problems are to be dealt with by someone else." In other words, all I have to do is pay my monthly fee and follow the rules. Everyone else will do likewise and it will all turn out "wonderful."

The owners at BLMH have achieved exactly what they desired via the election process which has occurred each and every year for about 36 years.  Where BLMH is today is not an accident. The fees collected were necessary and at times were insufficient. I've written at length about the problems of a "kick the can down the road" approach. The problems and consequences are real.

The current owners of BLMH pay for the consequences of oversight by boards they and previous owners have elected each and every year, for 36 or so years.

Part 2
Part 2 of this series will look more closely at the role of boards and owners in promoting certain misconceptions, and why they do so.