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December 6, 2005

ITS NOT A GOOD SIGN WHEN NO ONE SHOWS UP FOR MEETINGS

Here is something from a reader that relates to apathy at meetings, both on the part of the Board and the homeowners.

A reader writes: “As a homeowner living in a condo, I attended our annual meeting and was one of two homeowners who showed up. Only one board member attended. I have had a lot of issues and am quite outspoken and complained about our funding situation, and a few other things. The management company told me that I was the only one who was unhappy. His rationale was that since nobody showed up at the meeting and because none of them call him to complain, then everybody must be happy. And of course, I'm in the wrong for complaining. It has been conveyed to me by several homeowners that this is why homeowners stop attending meetings”.

Another says: “I attended the annual meeting this year and there was not a quorum of members so the Board turned it into a “town hall” meeting. This seems all the rage today - town hall meetings. It just seems like filler to me. What can be accomplished at such a meeting? “

As you can see, meetings can be seen as a problem from both sides of the table. For many Boards, most in fact of the associations that come to me for help, apathy is one of the biggest issues that arises. For an article on this, visit the guru website. and check out the articles.

When neither the Board nor the members come to meetings, who reigns? The manager often takes the reins, and then is later criticized for making decisions. It’s quite a catch-22 situation.

Here are some myths and realities about meetings:

Myth: The fact that everyone stays away from meetings and ignores communications, surveys and ballots means they are all happy with the way the association is being managed.

Reality: In most cases with regard to homeowners associations, people have been sold a “care free” life! And generally people are too busy to care about what is happening in their association. As long as they do not receive a big special assessment notice in the mail, they assume that everything ok, running smoothly and their money is being well-spent. They do not want to be bothered with details. This certainly can create a false perception that everyone is satisfied and unquestioning.

Myth: Owners who ask a lot of questions or complain a lot are “dissident homeowners.”

Reality: Everyone has a right to ask questions. Challenging decisions or lack thereof by the Board never endears a member to the Board. Some owners who ask questions or challenge the Board can be very valuable when enlisted into service. Nothing is worse than a “yes man” (my pet name for someone who agrees with everything someone else says without thinking about it). I have seen “yes men” get Associations into as much or more trouble than “complainers”.

Myth: If there is no quorum, everyone must be sent home.

Reality: When people take the time to come to a meeting, even if there is no quorum to vote on anything, the Board can give reports or take this opportunity to poll the attendees and find out what they think on any given topic. Interests can be explored and the value and importance of service (like serving on the Board or a committee) can be discussed. This is the benefit of a town hall meeting: allow give and take, identify problems and look for solutions, brainstorm, create goodwill, talk about what happened over the past year, ask for suggestions on getting neighbors to come out, plan a social event. Most governing documents allow for the Board to call for adjournment of a meeting when there is no quorum, and allow for the members present to approve a followup meeting (adjourned meeting) that same night, without requiring a mailed notice. Some allow for reconvening later the same evening, and some with a lower proxy requirement, allowing the Board to achieve a quorum with a little door-to-door foot work, or filler time while some attendees try to round up their neighbors.

Another time town-hall meetings are very valuable is in time of crisis, when there is to be a large expense and the members need information. It is important to enlist the support of the community before a sizable rehabilitation or reconstruction project that will require a special assessment or loan, or a matter of slide repair that though it does not threaten all homes in the community, threatens all pocketbooks.

A townhall meeting can be very helpful to a Board that is served with a petition from the members calling for a vote on a subject that is not legally within the member’s purview (unless the governing documents so provide), such as approving a budget for the coming year.

But back to basics. If there is no quorum of board members) for a board meeting) or of members (for a membership meeting), no business can be conducted. And it does not mean everything is ok! To the contrary it means everything is not ok.

Posted by Beth Grimm at December 6, 2005 8:33 PM