Motivating Owners to Be Active in Association

Editor’s note: The Community Associations Institute, a national nonprofit research and educational organization, estimates that one of every eight homeowners lives in some form of community association or common-interest real estate development.

With the introduction this week of “Condo Q&A;,” The Times offers reader-oriented advice on the operation, financing and maintenance of condos, homeowner associations, cooperatives and other forms of community associations.

QUESTION: Most of the owners in our condominium complex do not want to participate in the operation of the association, and we have a tough time finding people who are willing to serve on the board of directors. At a recent annual meeting, we didn’t have a quorum present, so the meeting had to be postponed. What can we do?

ANSWER: Let’s start by analyzing some of the reasons for apathy. First, most people have heavy work schedules, so they are very protective of their leisure time. Second, most people move into a condominium thinking that they don’t need to participate in the management or decision-making of the association. In fact, some people don’t really understand what they’ve purchased at all.

Third, as long as the association is running smoothly, most people will not be motivated to participate. It’s a fact that if the board starts making unpopular decisions, more people will be inclined to speak up and act. Fourth, perhaps your current board is stifling interest by discouraging owner input or having “secret” meetings (always a mistake).

In this situation, those who might be interested simply give up in frustration or disgust. Sometimes the board members enjoy their power or martyrdom and continually exclaim to all how demanding and unfulfilling it is to serve on the board.

Here are some suggestions that may encourage owner involvement:

1. The board should communicate with owners using a brief newsletter to inform owners of board meeting dates, board action, current issues and concerns facing the association. Invite owners to participate. Ask for help.

2. Set up committees, such as budget and finance, landscape, building maintenance, social, etc., to give input to the board. Committee members will often become future board members.

3. Several weeks before the next annual meeting and board election, schedule a social event, a Neighborhood Watch meeting or a program with interesting speakers that will draw the owners. During the event, promote the approaching annual meeting, encourage owners to nominate potential board members and urge attendance at the meeting or sending a proxy if attendance isn’t possible. Remind them of the added expense and effort that results from failing to get a quorum. Be creative; maybe offer a door prize.

4. After all that, you may still have to go door-to-door to collect proxies so that the annual meeting can be conducted.

Another Association Has Much Lower Dues

Q: How do we know whether our association’s budget is accurate and realistic? A similar association in our area has a much lower budget and its owners pay $50 a month less than we pay.

A: Don’t assume that your board is a bunch of spendthrifts. Even though the other association seems similar, there may be many reasons that your association’s expenses are greater, such as type of amenities, size of staff, type of management, amount of landscaping and, here’s the big one, the amount of reserve funds that are being set aside for major repair and replacement, or capital expense.

Usually, a great deal of time and effort goes into the budgeting process, so don’t start criticizing until you have gained some solid information. Talk with your association president, treasurer or management company representative. Don’t be surprised if you are asked to serve on the next budget committee.

Some Dog Owners Let Their Pets Roam

Q: A few owners in our association allow their dogs to run loose occasionally. I don’t dislike dogs, but I dislike owners who allow their dogs to roam. We have an association rule about controlling pets but the board seems unable to enforce it.

A: This is probably an instance where the association’s rule is duplicated by city or county code. Contact your local authorities to seek help if the dogs are a nuisance or a safety hazard. Then, work with your board to put some teeth into your rule enforcement. If your Covenants, Conditions and Restrictions (CC&Rs;) allow you to impose fines on rule violators, that may be an effective enforcement tool.

Board Thinks Heating Pool Is Unnecessary

Q: Our board thinks that our gas bills for heating the swimming pool are an unnecessary expense. Can they just arbitrarily decide to stop heating the pool? One of our members has threatened to sue the board if they do this.

A: First, board members should make sure that they have adequately researched the gas expense records. Then, check the capacity and efficiency of the pool heater. An inadequate size or inefficient heater can greatly increase gas usage. You may need a new heater.

Find out how much you could save by simply lowering the temperature setting or limiting the amount of time or the months of the year that the pool is heated. Look at alternate methods of heating, such as solar heating systems or solar blankets. Analyze the pay-back of the cost of converting to solar heat.

Communication with the owners is necessary. Survey the owners and residents to find out about the number of people that use the pool and the peak periods of use and explain the current costs and the alternate solutions which are being considered.

You may find that a majority of the members want the pool heated regardless of the cost. All of these factors should contribute to the board’s decision. The board might want to put this matter to a vote of the members.

Bear in mind that the decision may result in some resentment and, in the extreme, even a lawsuit. The board should carefully document the contributing factors to show that they used good business judgment, and, most important, they should communicate openly and honestly with the owners throughout the decision-making process.