Since some of the columns have been published, laws have changed, new cases have arrived, I've grown more experienced, and hopefully a little wiser. As such ,here ar e few thoughts to supplement some of the issues already presented in earlier columns.

• Rogue Boards. As always, if a Board member is going off on his or her own without permission from the Board, the first step should be to educate the member. Sit and speak with them and help them understand no one on the Board and no Officer has the right to act except within the duties noted in the condominium instruments, ask if they have any questions and ask what led them to believe they could and should move forward on any matter without Board approval.

• On the other hand, if they go ahead on their own, remember any member is but one person on the Board. There is no such thing as a one person majority. So vote as a board to hire coulee and warn the member. The letter should contain language, direct and firm, that individual actions expose the ember to individual liability, liability that is not covered under the Associatns Director's and Officer's liability policy. so if, for example, a Board member, and/or officer signs a contract without Baord authority, that person may have to pay the contract out of their own pocket, or any damages to get out of the contract. It's important that Board work together. never let someone act without Board authority, and any actions granted to a person should show up in the minutes of the meeting, to protect everyone.

5. Great Board practices – How do the best run Associations operate?

We have worked with great boards since 1985, and we have worked with Boards who had great difficulty in leading their associations. Here is what we have observed in working with great boards:

1. Great boards learn to work as a team. There is a balanced sharing of the work load among all board members.

2. The directors listen to others perspective, respecting those on the Board or the association with different opinions. The best decisions are made after a lively discussion of all the issues and concerns. Decisions made, even though not unanimous, become THE decision of the Board. Minority members accept the decision of the majority.

3. No single board member controls or dominates the Board or association. Board discussion is balanced with all members contributing. Board members with dissenting opinion are encouraged. The President leads, but should not dominate.

4. There are no decisions or actions outside of Board meeting, unless the President is required to take emergency action, in which case it is reported to the other members as soon as possible.

5. Board members do no not directly undertake tasks/jobs, that are more suitably handled by a designated professional….. CPA, attorney, consultant. Outside counsel is sought and followed from Management Company, attorney and other consultants as needed.

6. Decisions are made for the best interests of the entire association.

7. Board members understand that they are “serving” their members, not acting as managers.

8. The job of the board is to establish policies and review the work done by others.

9. The Board utilizes professional and competent vendors and they have reasonable expectations of their vendors.

10. Board members realize that they are Board members at Board meetings, or while conducting board business outside of a meeting, and homeowners the rest of the time. After all, this is your home too.

11. Board meetings are regularly scheduled, with proper notice to owners, to which Board members are prepared in advance with material read, and arrive ready to make decisions.

12. Minutes are taken that reflect the decisions made and distributed to owners in a timely fashion.

13. On the awarding of maintenance jobs cost is not the primary issue, rather a concern for the long term effectiveness. In other words, value, is more important than cost. Also, vendors are paid promptly upon satisfactory completion.

14. In the association there is a great community spirit. Owners voices are given consideration, and there is healthy dialogue when needed on important issues. Communication with owners is viewed as important.

15. Conflicts of interest: in a homeowners association the potential for this can occur frequently. Examples of this include relationships with association vendors, having work done on a portion of the common area that would benefit a board member and avoiding the same kind of work elsewhere, keeping the assessments low, at the expense of necessary repairs or reserve funding, so that a unit can be sold in the near future, are all examples of conflicts of interest. Be aware of them, and avoid even the hint of a conflict of interest.
(Back to Top)