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Subject: Changing Management Companys
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06/30/2006 3:45 PM  
We are a realitive new HOA, 2years, and have the Management company slected by the developments builders. There has been some discussion about their nonresponse in many areas and discussion about replancing them. How can the Board go about finding a new Management company through a selection process based on their performance. We are in San Diego,north county area.



06/30/2006 5:51 PM  

Are you on the Board? If not, I do not recommend you get involved in seeking a new company. Though your asking and being interested is extremely noble. After all, it is the place you live. MC's know other MC's. If your current MC gets wind, or thinks something is a foot, it can cause a great deal of instability within the community. Changing should only happen on a Board level, it can occur but there should be multiple bidders.

However, a very good way for the Board to find a Management Company is by visiting other developments that are similar to yours. If a Board representative looks around the development (hopefully he/she wont' look suspicious) and likes what is seen, that's a good sign. Many communities have Management on site 1 or 2 days a week so he/she may luck out by asking a few questions, but no mention of the community the Board member lives in.

I think it is very healthy to switch MC's at the stage your HOA is at if the MC is nonresponsive and selected by the builder. However, changing is a transition process in and of itself. I believe the MC should be put on notice well in advance of a change occurring, it's only fair they have a chance to shape up. I believe it must be done methodically, where the HOA creates a library of information about the community on site at all times to include, but not limited to the following:

Minutes and agendas from all meetings
Owner complaints, requests, letters, etc.
HOA Board member to become signatory on bank accounts
Letters of communication to your Borough
Site plans of community
Unit owner addresses, telephone numbers, other pertinent information
If the residents pay their maintenance automatically, who are the residents, how will you notify them to stop paying one MC and start paying another
If there has ever been a community vote (election, amendment, etc.) the HOA should know if anyone has someone as a proxy holder
Applications of unit owners for architectural modifications to the interior or exterior of their unit (may or may not exist)
CPA audits
Governing documents
Contracts with service providers
Details of any Alternative Dispute Meetings that may have occurred
Transition related materials
Committee member list with addresses

None of this should occur if the developer is still on the Board and construction is still in progress.

Best of luck,

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Forums > Homeowner Association > HOA Discussions > Changing Management Companys

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