Home Owners Assoc. - I'm on the Board, Now What?

[M.D. Holloway]

Well, there was a leadership vacuum and I filled it. I was nominated and voted in to be open the board of directors for our Home Owners Association (HOA). Because of the flag lady scandle and a few other very strange things the old board was dissolved and a new one formed. Also, the property management company has resigned. They will gladley come back if the new board hires them on.

So, here are some of my questions to a few of you:

1) Anyone on their board? If so, please share some ideas and best practices.
2) Not wishing to manage this internally, I propose we use a prop mangagement co but what would the selection criteria be? I can write material procurement and service specs all day long but when it comes to this I am a tad bit lost. Any help?
3) Anyone have good experiences with Property Management Companies? If so, who are they?

Thanks guys...

[RallyJon]

Make sure your liability insurance is maxed out and paid up. Even better, get the HOA to carry insurance for you. Being on an HOA means you might get sued whenever you rule against someone.

[CS119laCoS]

I was on a board for a few years, like you, not because I wanted to, but because I felt I had to.

Anyways, here's some thoughts:

1. Your biggest concern should be this: Keeping costs down! Boards waste so much money on foolish things. Don't spend unless it's absolutely necessary. A board is like any other govt - once you spend on an item, you can never go back, it becomes a cost forever. Budgets never get smaller, they only grow. Try to stop the growth as much as possible. It's impt because increasing HOA fees hurts property values and makes your houses harder to sell.

2. Less is more. My biggest accomplishment was getting the board to meet once every 2 months instead of every month. That cuts the opportunity for damage in half!

3. Remember you are there to represent the interests of all the homeowners.

4. For you Property Management company, they need to be sure that they realize they represent the homeowners, not the Board. They get that confused a lot.

5. Again, the biggest responsibility is the budget, and the biggest component of the budget for most HOAs is insurance and landscaping. Make sure you are getting the best prices for both. Also, don't be afraid to switch vendors. Vendors tend to get fat, lazy and expensive when they get too entrenched/comfortable.

[Hugh R]

What Rally said. I just came off the board of a very small HOA 25 homes, after 9 years. Not that it was a headache, it was just time for someone else to take some responsibility. No management company experience here, we did it ourselves. I guess my advice is listen and learn at first. Find out your Texas laws on fines and evictions, in CA now its very hard to evict an HOA member for non payment of dues. Do you have a mechanism in your CC&Rs to fine people for dead cars, trash on the lawn, non-conforming paint colors,etc. Find out. In CA all were left with is suing in small claims and getting a judgement which is uncollectable until the ********* sells his house, and we're out the court costs and dues in arrears until then. Contact an HOA lawyer and pay a few hundred to understand EXACTLY what power the HOA has for fines, non-payment of dues, etc. and factor in questions on his costs and whether they can be tacked onto the costs against an HOA member in your state, under your CC&Rs.

[BlueSkyJaunte]

Home Owners Assoc. - I'm on the Board, Now What?

Get yourself a nice corner office and a hot secretary to bone...

[Joeaksa]

Mike,

Am on several boards and the above advise is good, especially about the insurance.

Did everyone like the old management company? If so then invite them to return, otherwise get bids for a new company.

Joe

[charleskieffner]

buy a level IV bullet proof vest and carry (2) .45's. meetings will tend to sway in your favor! LOL!

[Jims5543]

No one mentioned it. Get input from the home owners over concerns and expectations.

[goldgunner]

If one of the neighborhood members happens to be tuning a newly rebuilt Porsche with loud exhausts, during daylight hours, and other homeowners complain, be sure to tell them to chill, don't worry, be happy, and ask them how they deal with the dozens of lawn men's blower motors going all at the same time.

And when the tuning lasts for days and days, repeat above as needed.

Also, when said Porsche tuner makes data collection runs in the neighborhood, and the sound being loud makes it seem as though the speed is very high, and the neighbors come out and scowl and flag the tuner down and complain, be sure to tell them - 'It just sounds like it's going fast', and "I'm sure he'll be finished soon".

THAT would be helpful for me currently...

Older ladies in gated communities have nothing but time and Oprah on their hands...

[john70t]

Keep meeting records in duplicate files, get a complete cost history analysis of managment(taxes, utilities, maintenance records, yard services, etc..), establish rules and guidelines for ownership with penalties, and most importantly conduct meetings in a buisness-like fashion.

Also, for kicks, you might think of a few senarios for long-term planning, such as a high reinvestment vs. low-maintenance strategies.

[dhoward]

But the flag lady man, what about the flag lady?

[red-beard]

Originally posted by LubeMaster77
Well, there was a leadership vacuum and I filled it...Because of the flag lady scandle and a few other very strange things...

Yeah,

[charlesbahn]

Make sure the meetings are held in accordance with the organizational bylaws/operating agreement, and that the minutes are properly prepared, reviewed, and accepted.

As others have said, be sure director's insurance is in place and is adequate.