The Foundations for Success

Success leads to satisfaction
That is what is required for success, and for owner satisfaction. For HOAs such as BLMH in which 98 percent of the owners are un-involved and at times 10 percent are in arrears with their fees, success is difficult. However, success may lead to satisfaction. Consider that! Some will say success = happiness. In other words, if the HOA succeeds then the owners will be happy. So who is to arrange for that success in an HOA where 98% are un-involved?

There are statistics which indicate that while most owners are happy living in their homeowners association, it is also true the some are unhappy, and a few are very unhappy.

The causes of happiness and unhappiness are not entirely the consequence of action or inaction on the part of boards and HOAs. I can't say why some in our HOA are happy and others are bitter or unhappy. Most of our owners prefer to be un-involved. This means that they pay their fees,  keep the rules and avoid HOA meetings. They don't belong to any neighbors group. In other words, no one knows precisely what they like about BLMH, or what they may dislike. The fact that they are invisible implies they are satisfied. But to what extent no one can say. They may also be unhappy and prefer not to complain.

However, after talking to those who are unhappy with their existence as an owner at BLMH, I've learned a few things. What I've learned those unhappy people have taught me. They have come to HOA meetings to taunt the board, ridicule management, make demands and sometimes to lob personal attacks. I have about 13 years experience observing owners. I've attended many HOA meetings and from time to time I've been the target of their vitriol and unhappiness.

Here are some of the conclusions I have reached. Most of those who are dissatisfied or unhappy in their HOA simply have unreasonable expectations. Their experience did not match their expectations. Many made poor assumptions or didn't read the document package when they made their bid. The dissatisfaction occurs in a variety of ways.

For some dissatisfaction is stated as "I paid my fees and I expect service." Fees were paid and so maintenance should be impeccable, any problems should be dealt with immediately. After all "What do we get for our money?" HOAs are neither resorts or retirement communities. Maintaining a 40 acre HOA with 44 manor style homes, keeping the street lights on, maintaining and plowing the streets and replacing broken water mains, etc. requires a lot of money. These things in a 40 acre landscaped and stream filled PUD while building reserves will easily absorb a $300 monthly fee.  Yet some of the old timers continue to complain. But then, they remember the "good old days" when boards didn't do reserve studies and merely kept a "replacement fund" whatever that was. Meanwhile, they expect to retire on the cheap. Here's a wake-up call: For anyone who wants retirement living, such fees are more like $4,000 to $6,000 per month. Expecting the best of resort or retirement living for $300 a month is unreasonable and unrealistic. But don't bother me with the facts.

For some dissatisfaction is stated as "I expect the board to run this HOA in such a manner that the property will appreciate and I'll make money at the time I sell my unit." Some owners expect that they can permit their unit to fall into disrepair and yet, their fees will not only maintain the property, but the HOA should be managed in such way to result in an increase in the property values. Never mind the neighborhood, or the real estate market. Or the condition of the interior of the unit. "My 1978 kitchen should be worth a lot more now" seems to be an expectation. Same for my 39 year old rusing air conditioning system.  The fact is, the board and management should be working to maintain the property while owners should be doing the same to maintain and improve their units. Low fees may make it easier to sell a unit; but there may be a piper to pay in the future when those reserves are required. Remember, the purchasing power of a buyer in a HOA is determined by:

     Cost of the unit (mortgage principal) + mortgage interest + real estate taxes + HOA fees

For some, dissatisfaction is stated as "Our fees should not increase." Some owners expect that the fees will may remain a constant for however long they live at their HOA. They paid about $80 a month in 1977 and that's what they should pay today. They don't pay attention to reserves, don't pay attention to the condition or costs to maintain. Some are unaware of the responsibilities of the HOA. Some may assume that fees should never increase by more than  1 or 2 percent a year. Yet, they expect a 5% Social Security cost of living increase each year. Go figure!

For some, dissatisfaction is stated as "The board doesn't pay attention to me or do what I ask." HOAs are not democracies or social groups. The board and management will make decisions from time to time that will be unpopular. But perhaps, we should manage by committee and all 336 owners should vote on every issue? Here's the bad news. NOTHING would get done! We live in a HOA in which a large number of owners are un-involved and at least 33% won't vote in the annual election. However, in principal I do think this approach would be fun. Want your roof replaced? Then you will have to knock on 335 doors and get the remaining owners to agree. Oh, and some live somewhere between Florida and Thailand, so good luck to you. Obviously, each and every thing to be done won't be put before all of the owners to vote. Similarly, an individual owner should not expect that management or the board will bow to their wants, needs or desires. But some owners think that is the role of the board. After all, our sole purpose is to cater to you!

For some, dissatisfaction is stated as "The board is not transparent." I personally love this complaint. These owners seldom attend HOA meetings. Some don't bother to read the newsletters or mailing from management. But they expect to miraculously be fully informed. How? Probably through their friends and the grape-vein, or rumor mill of their choice. But no matter how uninformed they are, they will always complain that the board or management didn't keep them properly informed. Then they will gather their friends around them and come to HOA meetings to air their complaint. Recently, one of our owners complained because the Knox Boxes, an entirely optional improvement, had not yet been completed. That individual felt "unsafe" because of this. That person was advised that the sole purpose of the knox box was for owner keys. The police had exterior door keys. My point? This isn't a retirement home.

For some, dissatisfaction is "No one told me this before I purchased my unit." Some owners read everything they receive in the packet prior to purchase. They hire a real estate attorney and after they review the financials for the HOA they then provide a copy to their accountant for his opinion. That's what I did. However, many don't read the Rules & Regulations, the Bylaws, the financial documents. Prior to purchase they don't walk the grounds and interview owners, they don't write a letter detailing any concerns to management. Nor do they make any attempt to meet with the board prior to a HOA meeting. Yet, after they move in and the warm glow of their new purchase has faded, then they will realize that they didn't know about a certain restriction, or the fee history, etc. They will then say "I didn't know." Ignorance is bliss.

For some, dissatisfaction is "The board is unfriendly, unresponsive or incompetent." A few owners think the board is here to serve them. Some think the board has nothing else to do, that boards are full time paid employees. Perhaps at BLMH it should be a requirement that all board members be retired and a member of the neighbors club. Some don't understand that boards are non-professionals who must make decisions by listening to and employing competent professionals. On the other hand, if we don't use email, or understand spreadsheets and so on, then how are we supposed to deal with a $1 million annual budget and make decisions which will have consequences 20 years in the future? Of course, board members are supposed to be available to the personal beck and call of each and every owner. In fact, because most HOAs are comprised of a mixed bag of owners, about 10% of whom are perpetually in arrears, some of whom are in foreclosure and some of whom think of the rules as oppression. It is probable that the board is similarly a diverse group with a variety of skills and capabilities. And no one on the board wants to work as a serf for other owners.

For some, dissatisfaction is "The board isn't acting in accordance with my viewpoint." Some owners expect the board, as neighbors, to listen and act solely on their behalf. Or, we all think alike, don't we? What's good for me is certainly good for everyone else! Not necessarily true. In fact, if each owner is treated equally, some will feel that they are being given short shrift. What the board does for one owner must be done for all owners. There are to be no special groups. "But I am special" may be the retort.

For some, dissatisfaction is "The HOA takes too long to respond." In fact, while many things can be solved with a simple work order, there remains logistics. An inspection may have to be performed, then material ordered, and the work scheduled. Only after the material is on hand, manpower is available and other tasks previously assigned are completed can "my problem" be addressed. Some owners think the HOA has a warehouse full of material; it doesn't. Some think the HOA has unlimited manpower; it doesn't. In some circumstances the problem, if unique, will go before the board for discussion. Those meetings occur once a month. So it may take 30 days for the board to be present to discuss. Then it may be required to get a proposal. Then the board must approve the proposal. When is it to do that? At the next HOA meeting. 60 days may have now passed before a decision to proceed and money to be spent has been approved. But some owners will demand immediate response, which cannot be accomplished and deliberated in an open HOA meeting. Of course, there are methods for emergencies. However, each and every owner problem is not an emergency. Or is it?

For some, dissatisfaction begins as an owner. Some owners think they purchased an apartment. They prefer to pretend there is a superintendent, that they don't need to be involved and when things don't automatically work out, they will be the first to state that incompetence or fraud must be to blame. In fact, if owners want their HOA to be successful then they must be informed and involved. They should be respectfully involved; attending a neighbors club meeting doesn't count. By this I mean they should learn about their HOA and become aware of the issues. This requires knowing the documents for the HOA. It requires reading all materials from management and any other timely documents such as newsletters. It requires attending meetings several times a year and it requires joining committees or the board.  For an HOA where 90% prefer to be involved, this will prove to be impossible.

Ah, yes, the best lies ahead!