Back in 2008 I attempted to change the course of the HOA I live in. I was not well received. I had nails driven into the tires of my car, not once but several times (I've got police reports to substantiate this). From 2001-2010 our HOA fees were increasing at an average about 7% each and every year, and there was a huge maintenance/improvement backlog. Earlier boards had begun capital improvement projects for which there were insufficient funds to complete, and no plan. The "change" board of 2009-2010 had authorized a reserve study which indicated things were a mess, but hadn't released it.
I was determined to get on the board to make a difference, but it was actually worse than I expected.
I cleaned up all of these messes, but it took about 1000 hours of my time in the first year. In late 2010 I took it upon myself to create a viable reserve study, after the previous board botched the one they had authorized. I discovered this 30 days after assuming my board duties. That earlier study stated we needed a 10% fee increase and a special assessment. Thanks to my hard work, neither happened. In fact, fees flattened, with no increases in recent years. My thanks? A board member of the group responsible for that botched reserve study circulated an email that stated that "Norm is dangerous".
Since 2010 we've had several reserve studies by independent, professional organizations which validate our association approach and provides accurate guidance to the board.
Since 2010 we've had several reserve studies by independent, professional organizations which validate our association approach and provides accurate guidance to the board.
I'm not popular. In fact in 2011 one little old lady upon seeing me walking the property would scream "I don't like you" at me. I usually walk in the large public park across the street. Walking on the propery is work for me, or an opportunity to be accosted by ungrateful owners. That happens too, when I'm on my deck. We have some owners too lazy to come to board meetings, preferring to practice that our board members are lesser beings, and their servants. In fact, if I happen upon owners at the park some will begin to ask things of me as a board member. I refer them to management or suggest they attend a HOA meeting. Some owners were trained by earlier boards that catered to a few individuals.
It is time to move on. I have a better, and more consequential way to live the remainder of my life. Yes, the party is over.
It is time to move on. I have a better, and more consequential way to live the remainder of my life. Yes, the party is over.
I did achieve a board position in the fall of 2010, despite incredible resistance. I told everyone that I took on this association as a "project" to demonstrate what was possible. A few saw this as an opportunity to undermine. There were very, very few believers and few supporters. Some old timers from the earlier boards (prior to 2008) appeared to be more interested in preserving their legacy, and one does so to this very day. I was undercut and left high and dry more than a few times by the entrenched.
In 2015 when I attempted to reign in fees based upon financial reality a reinvigorated board member attacked the two new board members who didn't agree with the entrenched position, accusing them of malfeasance. That was a personal attack intended to get them off the board. That's why I say "there is no place for politics in a HOA board" which is supposed to be comprised of fiduciaries. When our president decided not to run (he is a CPA) he was basically ignored by the entrenched old timers. Not even a "thank you" by them. But things were better when we had those high annual fee increases, right?
It is time for me to move on. The demonstration was a success. I did control the fees, completed the numerous projects, began discussions with the City to reduce costs to our owners (a savings of at least $4,500 per owner). I did attract three new board members who took on responsilities and did make a difference.
Back when I worked full time for a living, I would have been paid $675,000 for the services I performed to this association, if I charged my normal hourly rate from 2010 to 2018. And some can't comprehend why I won't continue to be of service to them.
Duh!
The chart indicates the situation from the period I purchased to the present. My blog provides more insights. All boards have this information, the data is given to them each and every month of the year. But you won't see it in the newsletter, unless I have put it there.
I decided to make a difference. I put my business on the backburner, and helped 336 owners. I'll never be missed. But there will be numerous complaints by the uninvolved and entitled. Party on, dudes and dudettes!
How does one determine if the board is accomplishing its tasks? That's worthy of another article, but here's a chart in the change in propety values since 2009:
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