March 19, 2010

This week's tip challenges you to evaluate your own performance. Are you committing some of the most predictable mistakes new condo or homeowners association board members make when they step into their new role?

"Your authority as a board member stems from your association's governing documents," explains Robert DeNichilo, an attorney at Neuland & Whitney APC in Rancho Santa Margarita, Calif., who specializes in representing community associations.

"If it's not in the governing documents, you can't do it. But I see new board members trying to do things outside the board's authority. They're very enthusiastic, and they want to take care of issues they care about. For example, a hot-button issue is parking. But if there's nothing in the governing documents about regulating parking, or if your association has public streets, there's little the board can do to regulate parking."

David Regenbaum, founder, chairman, and CEO of Association Management Inc. in Houston, which manages 239 communities with about 62,000 units, points out another error newbies make. "One of the most egregious mistakes new board members make is coming into office and attempting to change the lifestyle the membership expects the association to provide," he says.

"Maybe an association has an onsite manager, and the new board enters in a cost-saving mode and says, 'We're going to cut out the onsite manager.' But the owners bought a Cadillac and were prepared to pay for a Cadillac, and the new board wants to force them into a Volkswagen. I'm not saying new boards shouldn't try to save money. But be careful about changing the lifestyle that owners expected when they moved into the property without consulting with them."

In a new article, we've outlined nine common mis-steps that brand new board members make. You may be making them—even now. Find out: 9 Mistakes New HOA Board Members Make--And How to Avoid Them

Best regards,
Matt Humphrey
President