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November 30, 2007

The Institutional Memory of Associations

I received a call the other day from an association I had done some consulting work for a long time ago. They asked if I would be interested in looking at a project they were looking into that had to do with changing the appearance of the structures, building colors, landscaping, shingle types and colors, etc. They wanted a process that would allow owner involvement, but end up with a reasonable consensus. I said I'd be happy to, but then...I started thinking about it. I went into my storage area and started digging through the boxes until I came up with a large file folder with their name on it. Yep, inside was the project that I had done for them so long ago, the exact same thing.

Now, I guess I could have sat through some meetings, and then sent them the same report, along with a large bill, but instead, nice guy that I am, I just sent them a copy of the report, asking them if they could use it. The President was nice enough to call back thanking me for not taking advantage of their "long-term memory loss".

There are quite a few associations that have 30-40 years of operations and their long-term memory usually consists of a few residents who have lived there since the beginning and have been active enough over those years to know what has gone on. Oh, the records exist, but by now, they're buried in storage boxes in someone's basement or a separate storage facility, and realistically, they are probably so disorganized as to make it futile or extremely time consuming to search for anything.

The fact that board members come and go, often in a short period of time, can lead to subjects being re-visited time after time, without the historical information that can provide valuable background to the subject. Since a community association is probably going to be around for awhile, it might be worth exploring ways to keep the institutional memory in front of current leaders.

The first item that should be standard in any association is a "Motions" book. This is simply a listing of the motions made at a meeting, whether they were passed or not, and any comments pertinent to the motion. Associations with computer capabilities might have a "Motions" database, which would provide a search function that could be of great assistance. The Secretary would be responsible for the book (or database). Each board member should have a copy, (or a section in their board member's manual) adding in the updated pages as provided by the Secretary, and would pass it along to their successor. A similar book (or database) could be created for "Resolutions".

This item probably isn't done, but I think it would be worthwhile considering, and that is the creation of an association "Timeline". A visual history of association events. This can also be done through the computer, but it is the visual quality that makes it useful, so if it sits on one board member's computer, print it off now and then, to add to the manuals of the other board members. This would provide a quick reference to when things were decided or done, i.e. major repairs or replacements, litigation, successful social events. At least you would know which box to dig into for more detail (if you label your record storage boxes by the year).

I'm sure you could think of other or better ways. Remember, the easier you can make for future board members to find information, the more likely they won't waste money repeating your efforts.

Posted by joewest at 10:38 AM

November 19, 2007

Reform - Not Rants; Innovation - Not Invective

Recently, another of the more prolific anti-HOA writers, lost her battle in court. Her association, tired of her tirades and litigation against the board, countersued and won - the judge rejected her claim the board had illegally changed neighborhood covenants and increased dues. And he upheld the board’s counterclaim that she had libeled them, perhaps hundreds of times. She had "pummeled her HOA board members with hundreds of vitriolic e-mails, in newspapers and on Web sites, calling them “corrupt; wannabe dictators; psychopaths; sycophants” and various other names". Now she has to go back to everyone who published these and ask them to remove them.

A few weeks ago, Prof. Evan McKenzie was interviewed on "On the Commons", a web based program that also isn't too fond of HOA's. He basically said that it isn't going to be people like the one above who bring about changes to HOA governance, instead, it will be the ones who quietly go about organizing their support, picking the right legislative and court battles, making their points without bashing everyone on the other side, and knowing that changes come in steps, not leaps.

A lot of the people who dislike HOA's would be surprised to learn (or believe) that many of the people who work with associations also believe that changes are needed. They just understand that it isn't quite as simple or straight-forward as some would like to believe. There are a lot of competing interests involved with community associations, starting with the developers who build them, and need to earn a profit; to those owners who actually chose to move into an HOA because they read the documents and wanted to live in that community; to the managers, attorneys, reserve advisors, insurance agents and other professionals who provide services to them; to the local governments who decide when, where and how they will be built; to the states who structure the frameworks to bring them into creation and to continue. And then there are the people who actually live in them, each with their own idea of what that means.

To bring all of these groups together to agree on anything would generally be tough, but to set the stage by implying or by outright accusations that they are guilty of mass criminal or unethical activity against owners does little to accomplish anything. Condominium and homeowner associations comprise the vast majority of new construction around the country and will likely be the major form of neighborhoods in the not-to-distant future. It's going to take some new ideas, hard data on what is actually working and what isn't and a lot of compromise, to actually bring about meaningful reform; and even then it won't be perfect, as too many people surprisingly expect it be. After all, there will still be people involved.

Change will come, too slow for some, too fast for others. My only hope is that it makes some sort of sense as it progresses.

Posted by joewest at 7:30 PM