Several years of zero percent fee increases

"Incremental Continuous Improvement" - there are consequences and BLMH owners are reaping the rewards.

Success most often comes slowly. So too for HOAs. Patience it has been said is a virtue. In an "instant gratification" "me first" culture, patience is a lost art. This explains in part the great pain some owners have when they purchase in a HOA.

Whether or not we believe patience is a virtue, it is useful. Patience should never be an excuse for a lack of action. Patience is what is necessary in long term endeavors. As owners, most of us don't flip condos, homes or Park models. As board members, we are required to develop long term plans.

Board members are owners. Owners are grouped and collectively will get the same benefits over time. I say "over time" with the acknowledgement that usually capital improvements can't occur simultaneously in HOAs, unless they are very small. However, boards are required to develop long term plans and act accordingly.

In my limited experience, HOA boards far too frequently don't act according to the plans. Boards must provide reserves. They don't have to have plans about how to spend them. Even reserve studies can be shelved. Boards can and do operate independently of reserve studies.  Owners can insist that there be absolutely no future planning so as to keep their fees low with the hope they will sell their unit before the special assessments occur.

Is it any wonder HOAs have difficulties?

Success requires communications, planning and integrity. Politics should never be a part of the process of a board running a HOA, but it does occur. It has and does happen at BLMH. I'm sure it will happen again the the future. How is this? Board members eager to enhance their esteem in the community are the politicians. To do so they may talk, but walk in another direction. At BLMH we have a very small Neighbors Club and it is far too easy for board members to attend and cater to such a small group.

Obviously, board members must exercise self control and discretion. But that can be difficult. Being popular or getting accolades can be a very strong pull. Nevertheless, boards operate for all of the owners. That requires dealing with day-to-day issues but also the long term issues.  Because long term projects can absorb so much money, it is vital that board members pay serious attention to the costs and implementation of these long term projects. Doing so treats all owners, both those in any Neighbors Club, the rest of the owners and owners in the foreseeable future. Which is the basis for my argument.

There are methods to be used to accomplish large, long term projects. HOA's are intended to exist forever. By their very nature the HOA itself is one very large, long term project. Maintaining the HOA so it is a thriving community is a multi-faceted project. That requires a long term commitment by owners. Part of the responsibility of owners is to be cognizant of the reality of the Home Owners Association they live in.  That means being aware of issues and voting in a responsible manner for boards to represent the owners and get the work done.

The success of boards in completing these long term tasks can be compared to a relay race. The current board members do their best to complete the myriad of tasks available to them and that includes long term planning. Each year the "baton" is passed to a new board member, or group of members. That baton represents the wishes, dreams and responsibilities.

In a 30 year period a HOA can have as few as 10 board turnovers or as many as 30.  A few board members may provide service for decades. In our HOA some serve for about two terms.

"Projects" is a catch-all term which  includes reserve planning and the establishment of realistic financial controls. Combined with infrastructure planning these controls determine how things are accomplishes. Such controls are realized via annual budgets and the establishment of fees. A portion of these fees are saved each year as reserves to fund the long term plans, which not only include next years improvements and maintenance but also recognize the requirements 30 years hence.

These are successfully completed by meticulous and thorough planning, by executing those plans one step at a time, by frequent re-evaluation using results data and including current reality. It also requires enrolling committed individuals who are willing to support the project.

This is not easy and is, in fact, very difficult. "Long term" isn't normal in a "just do it", disposable society.

Looking Back
In December 2017 some may say this is easy. Others may say it was inevitable. It was neither.

When I began this personal project to turn around the merry ship SS:BLMH I was very clear there would be problems and it would be difficult. I recognized this before purchase of a unit in 2001. Our evaluation indicated that reserves and reserve planning was woefully inadequate. I was surprised, however, by some of the resistance to change by boards and by owners. I underestimated the power of greed (a fear of not having enough), the unwillingness to change (ability to accept and use new concepts) and the resignation (the tacit agreement that "We can't do this" or "It won't make a difference").

I always find it interesting how we human beings deal with adversity and impossible projects. My strength is based both upon my skills, my ethics and can be traced to many things, including a book I read many years ago. That book begins with the sentence "Life is Difficult." I read the first edition of that book in 1978. It is titled "The Road Less Travelled" and the author is M. Scott Peck. It seems some of my fellow homeowners want to live out of a belief that "Life should be easy." They have no evidence for that position, merely an expectation which becomes translated into entitlement. Some boards have been elected for the sole purpose of achieving this short term, ephemeral reality.

Reversing a financial trajectory
The financial trajectory was obvious. At the time I put in a bid for my unit this complex was 23 years old. It is a PUD encompassing 40 acres, 44 buildings. It had about $400,000 in reserves and was adding less than $60,000 a year. It apparently had never had a reserve study by an outside firm. It had recently changed management and had contracted a professional maintenance firm. It was in disarray with only partial planning and an emphasis on annual maintenance.

I concluded I would probably have to have a board position to make any meaningful change. That proved to be problem number one. There was a lot of confusion about the true state of the HOA and some decided "If it isn't broken, don't fix it". But it was broken!

By 2007 the incremental fee increases were rankling owners and that created an opportunity for a new board. My attempts to help or to be on the board were severely rebuffed. I was described as "dangerous" by some with an alternative agenda. Owners were told "Elect Norm and your fees will go up." Someone put nails into the tires of my automobile. Regarding those incidents some owners called me a liar but I had the police reports to substantiate my claims. One person actually would scream "I hate you" as I walked the grounds. But I persevered.

In 2010 I did achieve a position on the board. It occurred as a parliamentary maneuver. I did not achieve sufficient votes for the position and the board was full. However, a former treasurer who did achieve sufficient votes for a board position immediately resigned at the election held during the annual meeting. She did so to provide an opportunity for me. She was believer number one.

For the next seven years I crunched numbers. I also promoted the completion of myriad partially completed projects, dealing with problems or improvements and reinvigorating the maintenance program.

Enrolling the board
Boards were mistrustful or skeptical. There were 'old timers' who had seen a lot and had great difficulty with accepting possibilities other than their experience. They would have to be convinced and the best way to do so is to get results consistently year after year.

In 2010 I began the long road. I realized this would take more time than I was willing to put in. But I also knew there was no other way. Of course, I could have sold my unit; that would have been the easy way out because I really didn't have to live here. As for the money, well, I had no mortgage and I was still employed. So guess what? I can live anywhere!

To enroll the board members I would have to achieve results, deflect attempts to stop me, redirect board members based upon results, deal with the conversation "we can't do this" and prove my case. I realized that one or two years of "results" would be insufficient. Many would attribute that to luck, or machinations. It would require consistent, repeatable results (evidence to overcome the naysayers) as well as inordinate patience and understanding. I did not expect to make friends, but I did expect to gain partners. Each and every board member has a stake as an owner in the success of this HOA. Each board member also wants a place to live which suits their financial requirements and lifestyle. These things provided an impetus to the board. Some board members may also have personal esteem at risk. That's their problem, not mine. However, if we don't acknowledge the failures of the past, we are possibly doomed to repeat them. That poses a conundrum.

We were aligned by results, although there was a lot of differentiation or confusion about methods.

For example, I was committed to improving the newsletter. This was viewed as a waste. Some wanted a social periodical, and others felt that owners don't read it so why bother? I also suspect some board members didn't want to be held accountable. I chose communication. I chose printing commitments and I called our owners "shareholders" and treated them as such. That did not always go over well. Some board members weren't pleased and some owners are irresponsible. Nevertheless we are all shareholders in a not-for-profit corporation.

I persevered.

Engaging owners
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My attempt to






Attracting talent for the board







https://en.wikipedia.org/wiki/M._Scott_Peck