What would you suggest?

As a comment to my March 13 post "Can a HOA do that?" Docia posed the question "What is it you would have us do?"

That's a good question and there are two groups of "us" in the HOA. One is the board, which is bound by it's fiduciary duties and must act in the best interests of the association. "Must" is of course a relative term and is subject to interpretation. The other group is the owners, who are not so bound and can act solely in their best personal interests.

Docia's question requires two answers, because we have board members and owners. While it is true that all board members are owners, 98% of our owners are not board members and are not fiduciaries. So the vast majority of owners are not bound by any agreements but those which work for their personal interests. Of course there are rules and regulations, but some owners ignore them. It's important to keep these perspectives in place.

I would add that boards aren't perfect, but they aren't operating solely for their own benefit as some (many?) owners are. However, board members can be swayed by owners. When firm pressure doesn't work, personal attacks are the preferred method to deal with difficult board members. I'm speaking from personal experience and I did hire an attorney a few years ago at personal expense to put a few people in their place and remind them of slander and libel laws.

I do recommend participation by owners as their best line of defense. In other words, I suggest that owners be involved. But many owners think this HOA is a retirement community or an apartment complex. As this HOA ages there are difficult choices to be made. Some will come as surprises over time unless owners are informed and prepared.

What should we do?
I suggest that owners closely monitor the formal activities of other owners and boards with regards the HOA. The best way is to attend HOA meetings and thoroughly read anything produced by the HOA. I also suggest owners ask the difficult questions and get an education. There is a lot of money at stake here and it will be spent. Some owners will demand their wants and needs be accommodated; after all the HOA has a cash stash. Here at BLMH it is about $1.6 million. Just think what a owner could do with that? It's an unfortunate truth that 336 owners share in the benefits of that pot of gold. In other words, we each have a share of the pot which is about $4,761. Not a fortune when it is shared equally. Some owners have decided the best course of action is to share this money unequally. "Take care of me," Or perhaps take care of me and my friends.

Who is it that is the line of defense for equal sharing? It's the board and a really involved owner body. At BLMH we've had a few owners rally for their personal agenda. We've also had a few observe for altruistic reasons. It's my opinion  that the best board is one comprised of a balance of age and demographic groups in the HOA. It is also one with some skill and integrity. Such a board can fairly represent all owners in the HOA, not merely those in similar situations, or who have similar wants, needs and desires.

No one is perfect
Boards will be inclined to kick the can down the road. Owners need to be watchful for this. A former president made the statement at a board meeting that "we don't replace hallway carpeting until it becomes a trip hazard." In other words, the preferred method is to only replace things after they break. This is why our buildings have 39 year old mailboxes and my mail is currently dumped on the floor in the lobby; it's because the mailbox is broken. I'm sure within a few weeks it will be fixed.

The Difficult Question
Each HOA is different. It's important to ask the question "Why did owners purchase in my HOA?" The answer will provide some insights into what is expected. For example, at BLMH we have about 40 acres and had about 800 trees. We also have walking paths, streams and waterfalls. The manor style homes had simple interiors when built about 39 years ago. Masonite kitchen cabinets, carpeting, asphalt tile, minimalistic bathrooms, basic lighting. In fact, when I and my spouse inspected our unit prior to purchase, in 2001 she said "no way" upon viewing the kitchen. However, I promised her I could fix it. She was skeptical. But I did keep my promise and that made our unit bearable. However, there are many things in this HOA I cannot fix. There is no will on the part of the owner body to do so.

We didn't purchase here because of the upscale unit. Quite the contrary. But today, if the goal is to sequester and wait for God, then this is really a nice place to live and to die. Cheap, too! Consider the alternatives.

So what is special about this HOA? I'd guess it's the overall property and not the units. So should this HOA maintain that "ambiance" and replace trees, patch the sores where some were removed, fix the deteriorating streams, walks and so on so as to maintain that outdoor ambiance? Should the HOA do so pro-actively or wait until owners are up in arms? Or until things break? These seem to be difficult questions.

Owners need to choose. For those who want fees to remain constant, or plan to live here for their entire lives it might be unnecessary to do anything that doesn't directly benefit themselves. In other words, mow the lawn outside my unit, fix the stream outside my unit, fix my driveway, garage and my street. And to hell with everyone else. Remember, owners have no obligation but to act on their own behalf. Currently, one of the ongoing complaints is the weather. There is snow and ice in the winter. This poses inconvenience. For those who are unsteady walking on icy streets or walks might pose a hazard. So another expectation is snow and ice free entrances, walks, driveways and streets. Last year (winter of 2013-2014) this HOA spent several tens of thousands of dollars above the normal amount dealing with snow and ice. Yet some owners demand more, and lower fees.

The HOA added eighty-four knox boxes at significant expense. Yes, there is a benefit to each owner who uses those boxes. Yet we can't put in place a program to maintain mailboxes. It's a matter of priorities, in my opinion.

I suggest owners attend meetings and see who and what is attempting to strong arm the board. And ask questions. I have seen board members hide behind executive privilege. Yes, it is true that boards shouldn't publish a list of names of delinquent owners. But we can provide statistics. For many years this HOA didn't. HOAs can also provide basic information about foreclosures, legal matters and so on. But  most don't. With an absence of information is it not surprising that some owners thought everything is rosy, and that we had more than enough money?

The newsletter is the tip of the iceberg of information in this HOA. Owners can and should attend meetings. Anyone who attended the October 2014 budget session got a forthright and honest assessment from me of what I see as a future at BLMH. They also got a earful about what I think works and why I live here. They were also told on no uncertain terms the reasons I will move elsewhere and it has nothing to do with personal health or my personal finances. It is all about choosing one's abode and I have specific expectations of BLMH,

Attend the meetings, listen and ask the difficult or uncomfortable questions and you will get an education. Or, if you prefer, stick your head in the sand, pretend you own an apartment and simply expect things to work. After all, we live in the entitlement society.