How to deal with a backlog

Eleven years later and I have some insights about backlogs and funding shortfalls. Boards prior to 2008 were hamstrung by decisions made in previous years.  Those decisions resulted in inadequate reserves and a large maintenance backlog.

When I saw the condition of the association I had a lot of questions, more questions than answers. I discovered we didn't even have an accurate topographic drawing defining the boundaries of the property. So, add that to the list and in 2014 a topographic survey was made. Earlier boards had either lost the documents, or they had never existed. Management had no blueprints for the buildings, either.

By the time I achieved a seat on the board in 2010 a $1.6+ million roofing project was underway. It began in 2002-3 but was progressing very slowly. First one roof was completed, then two in a single year, then three. By spring of 2010 about 25 percent of the roofs were completed. The project delays I attribute to funding issues.

I'd been an owner since early 2001. I had been walking the property and cataloging issues. Some of this was readily visible such as the condition of common area decks, roofs, driveways, streets, unit patios, trees, landscaping, etc. Not readily visible were garage floors and so on. I'd been monitoring the board meetings and of course read the newsletters. What wasn't being discussed was as interesting as what was discussed.

I concluded a thorough survey was necessary. Observing the board of 2008-2009 I concluded they did not have a grip on the full magnitude of the problems. They were dealing with financial matters and avoiding the "elephant in the room" which was the condition of Lakecliffe, our major throughfare. That street was 5 years old and disintigrating. Another serious blow to our finances. It must have been overwhelming.

To determine that magnitude would require a thorough survey of the physical infrastructure. That however, would reveal the true financial issues of the association. That board did realize that they needed a lot more data. So they decided to authorize the first independent, outside reserve study. I was aware that there was some discussion about the adequacy of our reserves. Some thought "we have enough money". But the board did not independently create a catalog of the condition of the infrastructure, so it was all wishful thinking. By the time I arrived on the board I was told that the reserve study had been completed and I asked to review it. It did not support the opinions that "we have enough money." To the contrary. In fact, it raised as many questions as were answered.  I told the board that we needed a thorough analysis of the reserve study and I undertook that.

Step One - Determine the Infrastructure Condition
To get a grip on reality required determining the condition of the infrastructure. That would also provide an improved understanding of the underlying assumptions in the reserve study.

To determine the condition required a lot of surveys. More than can be readily accomplished in one year by a board. I was unaware of any thorough documentation made by previous surveys. Boards had been operating based upon complaints. For example, when several owners complained to the board about the condition of the garage floors in several buildings the board was prepared to vote to get proposals to replace those floors. I objected because we were unawares of the condition of the 84 4-car garages on the property. I suggested the problem floors be inspected with management to determine the severity of the problem. If not "urgent" that replacements be delayed until a complete survey was made of all garages. The condition of all garage floors would be rated and then a recommendation made to the board. The board agreed. It should be noted that the reserve study did not reveal the condition of the garage floors or make any recommendations.

Thus began a lot of work, conducted by the various boards. The actual inspections and surveys were conducted by me and management. Others by our maintenance contractor.

Step Two - Determine Costs






Step Three - Establish a Program














Several stream areas have been repaired. Of three streams, one is in good condition, one is in fair condition and the third has a "poor" section because repairs were suspended by the board 20 years ago.


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Adding narrow walks along driveways
An earlier board has begun adding narrow walks along one side of the driveway when they were repaved. The board of 2008-2009 suspended this because they felt it was unnecessary. So today we have some new driveways with and a few without these narrow walks. The purpose was to allow snow plows to push all the way off of the driveway while avoiding damage to turf. Of course, it also allowed people of "A" unit vehicles to exit without stepping off of the hard surface.

In 2011 I convinced the board to re-institute this approach. Here are a few photos I had taken to convince them of this. No contractor or management was informed of my intention prior to my taking of these photos.

Entry and driveway with narrow walk after snow removal

Entry and driveway without a narrow walk after snow removal

Entry and driveway without a narrow walk after snow removal

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It has also been a "denial mechanism" for some arrogant board members, who failed and may continue to fail to grasp the severity of their actions and take responsibility for them. Some board members have been more interested in "being right" or "looking good" than in "getting results".

I've spent a lot of time dealing with obstructionists. What a waste! Homeowner shareholders deserve better.

 and some "old timers" did their best to undercut and undermine the new board members; some adhered to the old adage "We need higher fees" and did their best to create that in 2015 and beyond. This remains true to this very day.  I watch my back each and every day on this board. Some I can trust to act out of integrity, while others will do the opposite, so what they can to protect their legacy, or simply back their "friends".

After the annual elections and having been replaced, some previous board members may sit in the wings and gloat, praying that the new board fails or at least makes them look good. The new board on discovering the true nature of the work and the depth of issues may simply do what they can to get by and then walk at the end of their terms. We've had some board members simply quit rather than deal with the real issues. Then there are the entrenched who may be there to protect their legacy or vote for their friends. 

This occurred not only for one year but apparently for decades.

I've seen board members do just the opposite, holding owners accountable but letting their friends on the board slide by. Of course, their friends do the same. It can be a regular "club".


I knew this wouldn't change in a year or three. Dealing with backlogs and entrenched beliefs can only be dealt with via creating a new reality. Some will always remain unconvinced and those who create these messes frequently adhere to their past beliefs and remain in denial. Some move on and pretend that someone else made the mess; in fact, it is best to do so before the problems become obvious. Board members have two choices; move on as quickly as possible or hang on and protect their turf.

An emphasis on bank balances while ignoring future expenditures or the requirements created by delaying maintenance or projects is a huge error. But we may feel good if we see those bank balances and some did, for a time.

I've had people at our association scoff when it is stated how many I've put into this in recent years. Some think I exaggerate; I don't. I didn't "expand the task to fill all available time". It was absolutely necessary and it took a group to do this. Not all board members have agreed and we've been misaligned and there have been obstructionists or tagalongs. I'm sure this is true of all boards where there are difficult decisions to be made.

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This is a HOA which had about 800 trees and thousands of shrubs, has 15 acres of turf, 44 large buildings, 3 manmade waterfall and streams, water mains, 6 streets, 84 driveways, 336 "limited common area" decks or patios, is bordered by two lakes and has about 3/4 mile of walks as well as several large common area decks. There is a real need for diligence in maintenance and landscaping.

This post depicts in some detail what I've been doing here since October 2010 as a board member. I'll be providing examples of all of the major projects. So bear with me.

One thing I did was to hone in on finances. Money is the grease for the wheels and without it, associations play games such as creating delays until finances are adequate to do that 'project'. This was standard procedure at this association for decades. Another thing I did was to commandeer the newsletter so as to have a "bloody pulpit" so the owners would be aware of what was really going on. A third was to set real priorities even with board disagreement or unwillingness. The fourth was to handle specific projects as "demonstrations" to convince boards and owners that there is another possibility. The fifth was to approach all of this (the entire association) as the truly long-term project it was; it would take multiple board tenures to get this on track. So I am still here. The final thing was to avoid turning these into "lifetime" projects. There might be that temptation; after all, the association will be here in 5, 20 and 40 years.

However, I won't be on this board for decades. That would be a huge mistake. What associations need is more owner involvement, not less. It doesn't need a boat anchor and I won't become one.

Into high gear with good weather
With the onset of Spring, we moved into "high gear" and outside work began. Such purpose has been lacking from time to time in the past. This was sometimes a result of budget issues and other times it was simply a lack of focus by boards, both new and seasoned.  This is real work and I've spent many thousands of hours since November 2010 getting done what is depicted in this post.

Years
These projects take years to complete because some are multi-faceted or the project is so large. In general, anything that is done to one building, or one driveway or one street, etc. must eventually be replicated throughout the property. The larger the property the more years it will take to see these projects to completion. For example, at our association, there are 44 large roofs. The earlier boards began by doing one roof in a year, then two and then three. At that pace, it would require 15 years to replace all of the roofs. Those roofs had a design life of 18-20 years. Some roofs would have reached an age of 30 years before replacement at that pace, which is unacceptable. To further complicate matters, there are real limits to how much work can be accomplished in any one year.

Will these projects ever be completed?
One might ask "When will this round of projects end?"  In fact, the flurry of activity since 2010 was catch-up to dealing with some really long-term issues and doing normal maintenance cycles. For example, we have tackled two streams, but one remains with some failed concrete sections. In fact, boards in the 1990s suspended work on these. Much of what was done since 2010 was "catch-up" and was necessary.

So will these projects ever really end? I think the answer is a guarded "yes" but there is no absolute certainty. This association is 40 years of age. There are some infrastructure components that are at end of reasonable lifespan. We need to replace brick window sills, do tuckpointing and the entries should be upgraded with new doors, intercoms and mailboxes. It is likely that there will be additional water main replacements, And, the first roof to be replaced in the last roofing cycle will be 20 years of age in 2022.

We still have the streets of 5 cul-de-sacs to replace. Thames Court will get new asphalt this year. We'll probably do concrete work for the next cul-de-sac this year and then resurface it in 2019. Using that approach all will be done in 2022-2023.

We have so many components that there is a never-ending list. For example, with 84 driveways each having a reasonable life of 10-12 years it is likely that about 8 will be replaced each and every year.

Information is essential
I've taken thousands of photos and made hundreds of diagrams, sketches, and charts for the board, for my own use and to assist management. Then there are the videos, a few of which are included in this post.

The following chart shows the fee trajectory at this association;  I purchased in 2001 (closing early 2002). It indicates how finances have changed since purchase. The blue line is the actual fees and it reflects the operating philosophy and actions of the boards. The red line indicates the trajectory the earlier boards were on; it is the path our association was on. The blue line departs from the red in 2009-1010. I joined the board in 2010.  Oddly, I was expected to be "the bad guy" in finances and I guess I have been because I did shake things up. Based on my experience at our HOA, this is probably the last HOA I will ever be a member of.

One of the board members who created these finances and delayed the projects did rejoin the board and then complained that "Norm is spending all of the money" but let's be real. I was the maintenance, architecture and projects director at the time. A lot of our annual money is spent in those areas. I didn't create these projects. I was playing "catch up" for the previous boards. And, I was completing the majority of the $1.7 million roofing project that those earlier boards began while correcting their failed streets (more than $500,000 including water mains replaced). And, I was focusing on finances. For the maintenance of the property, only Landscaping also spends. Duh!

Getting Fees under control after 2010 - Blue Line is the "Actual" - Red is the path we were on!

To make this happen I've spent several thousand hours or so on financial and planning matters. It takes money to get things done and while building reserves are important, boards should not be "King Midas" and hoard that gold. But some have and they achieved that dubious honor while delaying serious maintenance.

Walking the proper line takes a lot of work. Some boards would prefer to guess or to wing it. I've known a board member who pretended the association money is his/her money. It isn't. It is our owner-shareholders' money.

Here's a video based on an HOA annual meeting presentation I made to the owners in September 2016. My first such presentation was in 2010 shortly after joining the board.

Moving ahead with roofs and driveways
The board of 2008-2010 replaced a lot of driveways (about 12) and attempted to move forward with roofs at 3 or 4 a year. Surveys conducted in the spring of 2011 and thereafter indicated many serious issues.

the roof and driveway situation as of April 2013

Roofing Project
In 2002-2003 the association began re-roofing with architectural shingles, expanded ice shield, additional gutters and relocated front downspouts. This required front drainage improvements. The first roof done was the HOA president's building and it included extensive front drainage improvements. The project then languished for several years, probably because of cost and available reserves. By 2007 three roofs had been completed and each year thereafter a few more were done. However, there were about 38 large roofs remaining by 2009. Seven more were done in 2009-2010.

I was very concerned by of the age of the remaining roofs. Data indicated that some of these roofs, designed for 18 years, would be 25 years of age in 2017.  The roof over the building with my unit would be 23 years of age at replacement, should that occur in 2017. In fact, that roof was completed in the last year of the roofing project. Some owners did notice that. I was simply surveying all roofs each year while maintenance performed attic inspections looking for evidence of leaks. I simply dealt with the worst roofs each year while accelerating the project to finish before we experienced major roof failures. I presented my findings to the board each year and we discussed roofing options; which buildings were the worst, how many buildings to do in that year, etc.

Any roof leak repairs and interior damage would be paid by association funds unless caused by owner's fireplace chimneys. Here was the situation in fall of 2010. To complete the roofing project prior to exceeding expected lifetime, I had to schedule as many as eight roofs in one year! I was able to convince the board to adhere to my 2010 plan and the final roofs were completed in 2017, as I projected in 2010. The following chart was presented to the few owners and board members who attended an association meeting in the fall of 2010, along with many more charts and diagrams. So as not to inconvenience owners, the board decided to present these charts after the close of a regularly scheduled meeting. This was so as not to "inconvenience" owners. As would become customary I did all of the work and provided all of the technology to make the presentation:

Driveways

We have 84 driveways. With a projected lifespan of 10-12 years, about 8 need to be replaced each year, but in some years as few as zero are replaced and in others, such as 2010, about 12 were replaced.  

I did a survey of all in 2011 and found too many to be in "fair" to "poor" condition. Too many to replace in a year or two. I began a program of "crack filling" and "sealcoating" to extend the life of driveways. This approach would allow the association time to catch up with replacing problem driveways. Today we continue crack filling where needed. 

Repaired driveway - September 2011

Here is the situation as of 2016. We did replace additional driveways in 2017. 

Driveways replaced as of August 2016 since 2008

Heaving walks and Driveways

Because the roofing project re-routed front gutters and added others water was running beneath walks and driveways. The boards did not follow up on the drainage improvements required. Only the very first building got the new drainage. Coincidentally it was the president's building. 

This created some serious problems. Even after flooding one "A" unit the boards did not begin a consistent drainage program to deal with the relocated and added gutters and downspouts.  

I joined the board in the fall of 2010. In the winter of 2011, I discovered how serious the issue was. I spotted a heaving driveway. The led me to make surveys of the property. I discovered that we had walks and driveways heave. One entry and the walk was lifting and then falling 1-1/2 inches and even though brand new, already had cracks. I later determined upon replacing two front walks that we had several instances where the "wing wall" foundations had separated from the buildings. These were costly repairs;  I now had another "emergency" project to implement and quickly. In December of 2012, we were digging trenches to carry water away from buildings so as to avoid the heaving and damage where new roofs had been installed! 

February 2011 - New Driveway heaving at a garage

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A link to some earlier posts:

http://briarcliffelakes.blogspot.com/search/label/Driveway%20Project

Streets

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In fact I and other owners did attend meetings and we were left pretty much in the dark.  Boards used the veil of the "Executive Session" to avoid discussing many aspects of sensitive issues in front of owners. Some boards hid behind executive privilege.

Once on the board I  commandeered the newsletter and in fact, one of my primary reasons to become president was to get access to that first page of the newsletter with the "President's Message".  Board members as volunteers pretty much do as they choose and they do cater to the lowest common denominator.
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Some work is delayed by procrastinating or obstructionist board members. Such maintenance efforts then pile up as a backlog. Backlogs of work can become massive. If maintenance efforts are delayed by 5-10 years, then to complete them requires doubling efforts for years while new maintenance tasks are added. It can become impossible to catch up.

New boards may assume they can continue at the same leisurely pace of the prior boards. If funds are not set aside then not only does the work accumulate, the financial shortfalls to do the work also accumulate. It is a downward spiral.

Boards may simply pass the work to future boards who may fail to grasp what is required in their year or two and then move on. Don't misunderstand me. There is a difference between "being on the board for years" and "getting things done."  Just look at our U.S. Congress and you will understand what I mean. Your association may not be much different.

Consider that if it may take 3 or more years to do even a simple project to completion, what happens when boards move on after two years? The answer: things frequently stop or are left incomplete; knowledge is lost. New boards have to reinvent all of this knowledge, uncover the state of the association and play "catch up". That means to a lot of surveys and a lot of detective work. Of course, it remains for the "old timers" who are the stalwarts on the board to get things done and to mentor, educate and convince the newbies. At BLMH that didn't happen.

By 2010 there was quite a backlog at BLMH, created over several decades by boards that simply didn't get the job done. They didn't collect the necessary fees, didn't acquire the reserves and they failed to make the critical decisions.  They failed to see these projects to their completion and they failed to prepare the new boards. When funds became short some projects were stopped, some withered on the vine, some were done "on the cheap" and failed as Lakecliffe Blvd did, and some were delayed for years. And all of the time the clock was ticking as the infrastructure degraded. It was left to future boards to get the job done. Some of what follows has been published in the association Newsletters since 2010.

Budgeting is always an issue - creating a new reality and a new future
While it is necessary to get things done, there is a financial reality to deal with. We can only do so much in the time we have with the available resources. A board's job number one is to put all of the necessary pieces in place. This is a lot of work and it does require long-term plans, setting priorities, some backbone and being willing to hold other board members accountable.  It requires asking the difficult questions.

Since I've been on the board in the fall of 2010 we've not only gotten a lot done, we have also stabilized fees.   It has taken an extraordinary amount of work to get the finances under control and not all board members have been "on board". Literally thousands of hours of my time since 2008 (I began serious budget work upon purchasing a unit and years before joining the board). I did know just how bad it was in 2007. That was because I didn't rely on the kool-aid earlier boards were dispensing to the owners.

Creating a new reality was very difficult and remains so to this day.  Consider how one should approach a homeowners association in which there is evidence of inadequate reserves and a huge backlog of maintenance tasks? Where some owners pretend they are victims and others think they are paying too much for fees? While the country is in the middle of the worst recession in decades and it is likely delinquent accounts are increasing? Where board members are in denial, or oblivious (we even had a "wise sage") and where there are noisy and organized but irresponsible owners and so on? People do eventually wake up but it may be too late.

When board members who create such messes come to the inevitable conclusion and realize the gravity of the situation they may begin a plan to solve it. Simply choose a "solution" of higher and higher, ever-increasing fees. That will penalize current owners and may lower property values. It is like having a toolbox with only a bent screwdriver. This is misused as a hammer, a pick, to carve wood or as a doorstop!

Moving from Getting by to Getting done
A variety of boards may get by passing the problems into the future. Which is why it has been so darned difficult for me. Deferring work until later or skimping is one of the reasons any smart owner might be inclined to allow others and other boards to deal with the problems; simply sit back and hope it all turns out. That's what the owners in our association did for decades while arguing for low fees. When I leave the current party will be over.

Procrastination is not a viable management technique. Since 2011 it has required continuous and extraordinary effort to keep BLMH afloat.  You think I'm being arrogant? Our monthly fees would be $450 if the earlier boards had their way. I suppose at some point someone would have blinked. But think of the pain this would have caused for owners?

Of course, with fees nearly doubling since 2001 that has created a financial challenge for recent boards, even with the moderated fees.  In fact, in 2008 people said: "Elect Norm and your fees will go up." What they missed completely was the earlier boards had spent all of the money, had created the problems and were responsible for all of the fee increases. In fact, since my being elected in 2010 the fees have moderated while accomplishing the completion of the roofing project, the replacement of our major street, significant water main replacements and everything else in this post. Which shows just how wrong an HOA electorate and an entrenched board member can be.