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KrystalA
(Iowa)

Posts:59

06/22/2008 1:37 PM
We have a board of 5 people and three of them I hear want to self manage because they don't trust the management company. From what I understand the finances are great, but because he doesn't email constantly for members who think the sky is falling - they rather do things themselves. sadly i don't think our governing documents can do anything to prevent this, but I feel it could really hurt our property - any suggestions?

SusanW1
(Michigan)

Posts:2178

06/22/2008 1:58 PM
Are you on the Board or a resident? In any case, a motion will have to be presented and voted on by the Board to do any action (drop or hire) any company. So you can ask a Board member if this is going to be on the agenda and you have some special thoughts about it. Maybe the residents need to know about the possibility of change. I believe: If it ain't broken, don't fix it. If this management company is doing a great job, why is the Board even considering this? What are some of the biggest reasons why the Board thinks it can self-manage your HOA?

KrystalA
(Iowa)

Posts:59

06/22/2008 2:17 PM
I am on the board, but considering resigning as they seem to nit pick sooo much, and can't seem to let go of the past memories of a management company we had that made their lives "heck" One member constantly undermines the manager and honestly has always wanted self management (ego issues I believe) For example, the manager was to get some quotes for a job from one vendor. He hadn't heard from the manager in a week or two, so he just called to take care of things. If they want answers from the manager, instead of just asking for updates, they complain for days how they management company doesn't email. Basically they want everything done immediately, and don't get that sometimes, things do take a little time. Granted follow ups are great and needed on time sensitive issues - which they have done. I guess i am just fed up with the whole sky is falling routine all the time. We have had a very horrid rainy spring - all vendors are behind schedule because of it - but they seem to think that isn't an excuse. i guess they just expect to always be number one priority - and if i may be so bold to say, i think if there isn't an "issue" they are not happy.

SusanW1
(Michigan)

Posts:2178

06/22/2008 2:25 PM
Your Board's presiding officer (president) needs to keep the meetings going and not allow these complaining session to continue and overtake the meeting. I hate it when nothing gets done at a meeting except complaining and gossip and story-telling. Make sure the agenda is full and moves along. Put time limits on discussion. Board meetings are business meetings, not complaining sessions!

GlenL
(Ohio)

Posts:1376

06/22/2008 3:46 PM
Krystal self management can and does work for thousands of Associations of all sizes but it takes a dedicated team of volunteers to make it work right. Not only the three "gung ho" members but a team of volunteer members going indefinitely into the future and the fewer volunteers you have the quicker they will burn out from the pressures of day to day operations vs. making decisions for someone else to carry out. While it is natural to want to distance yourself from such negative people; it is in your best interest and that of your neighbors to actually know what is going on and to be there to combat it. Now it is possible that these three are just fantasizing how great it would be but if it ever comes up you can point out the following and remind them that they or anyone that undertakes self management will be doing it with no compensation. 1: Time - It takes a lot of time for volunteer board members to run their association; more than one meeting a month and a few minutes answering emails a day. On any given day these volunteers might be responding to homeowner calls, arranging maintenance appointments for various everyday repairs, writing enforcement letters, dealing with the grounds contractor, posting assessment payments and preparing financial statements, and consulting with the association attorney on collections and other legal matters. 2: Knowledge - In addition to technical specifications and various questions of law, finance, and governance, you need to have more than a passing familiarity with local, state, and federal laws that apply to everyday workings of your community. 3: Continuity - Board members might come and go, but a Management Company can offer a common thread that links one administration to the next. Why does this matter? Think about the importance of continuity when it comes to record keeping, budgeting, dealings with contractors, suppliers, and professional service providers, and even the relationships with your residents. I even know of one self managed Association near here who awoke to the news that their president and one man band of a board had sold his house and moved. They found piles of the Association records sitting on the curb waiting for the trash collector but they never did find all of them.

EllenS1
(Florida)

Posts:353

06/22/2008 4:08 PM
Does your contract with the management company contain any language as to one board member being their contact? I hope so, no company should be answering to all board members. The board members can communicate and have the contact person be the only one to advise the company. I would let all homeowners know what is up. There are so many reasons not to self manage, lack of expertise is only one. The board will burn out in no time, take vacations, move, become ill or whatever. It sounds like these folks have way too much time on their hands.

EllenS1
(Florida)

Posts:353

06/22/2008 4:14 PM
Glenl is 100% right. Everything seems so simple when you are not the person doing the job. It sounds like you have several people on the board who cry wolf all the time. In a sadistic way I'd like to see them self manage for a year but that would not be productive. Our president a couple of years ago kept many papers and didn't turn them over to the management company (a poor one at that time and thank goodness we now have a good one) and as soon as he was out of office we learned he had thrown out all the documents in his possession. I hope all your homeowners will soundly reject this self managing proposal. How many homes do you have in your HOA?

KirkW1
(Texas)

Posts:1145

06/22/2008 7:44 PM
One thing to keep in mind. When I closed I was told that a rider attached to my mortgage was pretty standard. It addressed my responsibility to pay the HOA. It also stated that I agreed to not undertake any action to remove professional management if it is currently in place. If my mortgage company found out I was involved in removing professional management they can accelerate the mortgage. Each board member may want to take a few minutes to review their closing documents and ensure they didn't sign a similar rider. Could be pretty costly.

MaryA1
(Arizona)

Posts:2248

06/23/2008 8:18 AM
Posted By KirkW1 on 06/22/2008 7:44 PM One thing to keep in mind. When I closed I was told that a rider attached to my mortgage was pretty standard. It addressed my responsibility to pay the HOA. It also stated that I agreed to not undertake any action to remove professional management if it is currently in place. If my mortgage company found out I was involved in removing professional management they can accelerate the mortgage. Each board member may want to take a few minutes to review their closing documents and ensure they didn't sign a similar rider. Could be pretty costly. Kirk, Wow, that rider regarding mgmt co contracts is a new one to me. Would it be possible for you to post it verbatim? Thx! :-)

KirkW1
(Texas)

Posts:1145

06/23/2008 8:08 PM
Lender's Prior Consent. Borrower shall not except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD. except for abandonment or termination required by law in the case of substantial destruction by fire or other casually or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. This is the paragraph covering this part. In all, there are two pages to the "PUD" rider that I signed.

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