Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Monday, September 28, 2015

HOA Annual Meeting - The State of the HOA


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The annual meeting of Briarcliffe Lakes Manor Homes Condominium Association was held on Thursday September 24. Each board member gave a summary of the state of the HOA from the perspective of their individual responsibilities. The summaries included:
  • President's Perspective
  • Vice-President's Perspective - Projects, Architecture and Infrastructure
  • Maintenance Director's Perspective
  • Treasurer's Perspective
  • Rules & Regulation Director's Perspective
  • Landscaping Director's Perspective
  • Welcoming Director's Perspective
There were some surprise announcements. But only approximately 10% of the HOA owners were in attendance in the audience, so most of the owners were not present for the announcements or the perspectives and summaries provided by each of the board of directors. However, the board of directors and management have properly fulfilled their duties. Owners have obligations too, and that includes attending the annual meeting. I suppose that some one might say the the six newsletters are so jam packed with information that there is no need to attend the meeting. However, our HOA business meetings span about 20 hours per year. They are jam-packed with information and believe me, 18 pages of annual newsletters (front and inside) cannot cover these meetings. Some owners have complained about transparency in the past. Coming to meeting would seem to be the best way to be informed. But many decided they were "too busy."

A quorum was reached and the elections held.

The HOA will now have only six board members. The president's position has been vacated.

Commentary:
As I have stated previously, the facilitator to the success of a condominium association is the owners. Owners can also be the greatest impediment. Board members are owners, too. So the quality of the HOA is determined entirely by the owners.

At BLMH it has been a struggle to fill the board positions with working members. We have had place holders from time to time. Because of the low interest by owners, we have had some board members "work for free" contributing hundreds of hours per year. We have also had some board member return year, after year after year. We now have one board member who has been doing this for about 38 years with a brief absence when the owners declined to re-elect her during a particularly rough patch. At the time we were entering the worst recession since the great depression, fees were up, we were in the early phase of a roofing project which would require another ten years to complete and but begun with less than 10% of the necessary funds in savings, we faced a major and early street replacement, etc. The ownership attributed all of these problems to the board. The economy surely didn't help the mood.

It's simply too easy for many owners to pretend this is an apartment complex or a retirement community. Owner involvement ceases with the paying of fees.  That's one reason why we have such low owner attendance at meetings. Boards may also have been their own worst enemies. I also am of the opinion from past experience that more owners would attend if there was something personal in it for them. For example, about 7 years ago a board attempted to bribe owners with free coffee and donuts. Some owners have come with their complaints and their hand outstretched and palm up. A compliant board a few years ago attempted to grant every wish and demand. It is unfortunate, but these hand outs require higher fees. And fees are really in short supply; we will spend every dollar we've collected simply do do the absolute necessities. No kidding! There is no "slush fund" with which to grant the personal wishes of owners, unless a board decides to avoid completing the roofing project, or stop driveway repairs, or let owners clear their own driveways of snow, etc. That would be okay for a few, as long as their driveway was plowed and if they already have a new roof, etc. why, then it is not a problem at all!


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