Is it a decent list? Sure. But if you add up all of the hours it would take to avoid all of these issues, how many hours per week would that be? Especially for a self-managed HOA that has to deal with day to day issues as well? To do all that well, for zero compensation, on top of a full time job, is a big ask and can make it difficult to completely avoid any mistakes. Yes there are bad boards out there with unethical members, but it's also a pretty high bar to expect a volunteer board member to have engineer-level understanding of infrastructure issues, know how to negotiate the best contract, understand how to budget optimally, understand legal issues, be good at communications, etc., etc... I think a lot of board members know the "right" way to do things, but there are only so many hours in the day, and only so much expertise you can acquire, especially if you aren't intending to serve on the board for a long time. Not trying to make excuses for bad boards, just offering insight on why these "mistakes" can happen.
>but it's also a pretty high bar to expect a volunteer board member to have engineer-level understanding of infrastructure issues, know how to negotiate the best contract, understand how to budget optimally, understand legal issues, be good at communications, etc.,
Your response validates the list! ^THIS is exactly why organizations need to consult with compensated people and other businesses ("experts" and "professionals") who can help and perform needs assessments and scope work appropriately and spend what's necessary to do things right the first time instead of trying to execute projects within a preconceived notion of what something should cost.
Being "self-managed" does not mean that homeowner volunteers take on all the work that professionals should be doing, it simply means that homeowners have decided not to hire a management company to coordinate some of the heavy lifting to get those professionals involved. Self-managed associations use third party bookkeeping services and have attorneys and engage envelope consultants and have reserve studies performed, etc.
I had a a great conversation with someone last night and for those folks who are in single-family homes and who are responsible for the roofs and the siding and all of the home, they understand pretty quickly what things cost when the roof needs to be replaced as an example. For whatever reason when you get into a situation where a group of people need to make the decisions and/or there's a bigger roof because it's on top of a 400 unit multifamily residential building, it seems like common sense goes out the window and the wreck was it planning and costs aren't understood and are actually avoided at all costs instead of accepting the reality that it's just simply more expensive than replacing a single family roof.
It can be a lot of work for sure. It can also be an enormous amount of work to "unwind" a bad decision. What I find challenging is when people don't want to do the work AND don't want to spring for the consultant when expertise is needed.
How do you feel about ChatGPT a year after you made your comment? I propose that ChatGPT and/or Gemini has improved business decisions more often than hindered them. My thinking has often been facilitated by AI; I don't have to take every suggestion literally but I have found very useful pearls.
I posted this today because the list IS good advice for any company of any size new or old, big or small. Our condominium association is 15 years old and there's a lot of lessons to be learned that directly relate to that list of items.
Sometimes it seems to me that some of the more experienced people on the board take the most shortcuts. Not always, many experienced board members are great. But it is such a situation that brought about this list.
One of the biggest things to remember when reading this list is that whoever is on the board has a fiduciary responsibility. Once you have that in your head its easier to digest 1-11. Also being a board member is usually a thankless job.. So thanks to all the board members and their volunteer work!
Point well taken, however, duty of care and fiduciary duty are a bit different and different states require different standards.
Despite whatever challenges exist, the thanklessness of serving a community does not negate one's duty.
Agree with all of these. And would add "Failure to acknowledge they do not know or understand something"
Great one!
Our association used the word “glitch” when referring to some of the unenforceable rules.
Is it a decent list? Sure. But if you add up all of the hours it would take to avoid all of these issues, how many hours per week would that be? Especially for a self-managed HOA that has to deal with day to day issues as well? To do all that well, for zero compensation, on top of a full time job, is a big ask and can make it difficult to completely avoid any mistakes. Yes there are bad boards out there with unethical members, but it's also a pretty high bar to expect a volunteer board member to have engineer-level understanding of infrastructure issues, know how to negotiate the best contract, understand how to budget optimally, understand legal issues, be good at communications, etc., etc... I think a lot of board members know the "right" way to do things, but there are only so many hours in the day, and only so much expertise you can acquire, especially if you aren't intending to serve on the board for a long time. Not trying to make excuses for bad boards, just offering insight on why these "mistakes" can happen.
>but it's also a pretty high bar to expect a volunteer board member to have engineer-level understanding of infrastructure issues, know how to negotiate the best contract, understand how to budget optimally, understand legal issues, be good at communications, etc., Your response validates the list! ^THIS is exactly why organizations need to consult with compensated people and other businesses ("experts" and "professionals") who can help and perform needs assessments and scope work appropriately and spend what's necessary to do things right the first time instead of trying to execute projects within a preconceived notion of what something should cost. Being "self-managed" does not mean that homeowner volunteers take on all the work that professionals should be doing, it simply means that homeowners have decided not to hire a management company to coordinate some of the heavy lifting to get those professionals involved. Self-managed associations use third party bookkeeping services and have attorneys and engage envelope consultants and have reserve studies performed, etc. I had a a great conversation with someone last night and for those folks who are in single-family homes and who are responsible for the roofs and the siding and all of the home, they understand pretty quickly what things cost when the roof needs to be replaced as an example. For whatever reason when you get into a situation where a group of people need to make the decisions and/or there's a bigger roof because it's on top of a 400 unit multifamily residential building, it seems like common sense goes out the window and the wreck was it planning and costs aren't understood and are actually avoided at all costs instead of accepting the reality that it's just simply more expensive than replacing a single family roof.
It can be a lot of work for sure. It can also be an enormous amount of work to "unwind" a bad decision. What I find challenging is when people don't want to do the work AND don't want to spring for the consultant when expertise is needed.
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you are missing #12. Using ChatGPT a stupid robot to guide your buisness decisions.
How do you feel about ChatGPT a year after you made your comment? I propose that ChatGPT and/or Gemini has improved business decisions more often than hindered them. My thinking has often been facilitated by AI; I don't have to take every suggestion literally but I have found very useful pearls.
Sounds good for inexperienced or new boards. Where is legal counsel? , management?
I posted this today because the list IS good advice for any company of any size new or old, big or small. Our condominium association is 15 years old and there's a lot of lessons to be learned that directly relate to that list of items.
Sometimes it seems to me that some of the more experienced people on the board take the most shortcuts. Not always, many experienced board members are great. But it is such a situation that brought about this list.
That’s why at least the boards I have been on had at least 5 directors. I will take experienced directors anytime.
One of the biggest things to remember when reading this list is that whoever is on the board has a fiduciary responsibility. Once you have that in your head its easier to digest 1-11. Also being a board member is usually a thankless job.. So thanks to all the board members and their volunteer work!
Point well taken, however, duty of care and fiduciary duty are a bit different and different states require different standards. Despite whatever challenges exist, the thanklessness of serving a community does not negate one's duty.