Tips for New Condo Association Leaders

QUESTION: I have just become the president of a medium-sized condominium association. Although we are in pretty good shape, I would welcome your advice and ideas on some of the things that I should be looking for as I proceed with my presidential duties.

ANSWER: I do not know whether to congratulate you or give you condolences on your assuming the presidency of your condominium association.

The job takes long hours, has many responsibilities, and you no doubt will suffer the abuse of some of the unit owners on any policy decision that is made. And, as you know, you do not get any pay for taking on these responsibilities.

The first thing I would do as president of a condominium association is review the directors and officers liability insurance policy that covers the board of directors. We are a very litigious society, and presidents and boards of directors are being sued by dissident unit owners on a regular basis. Make sure there is adequate coverage, in the event a lawsuit is filed against you or other board members.

The next thing is to sit down with the management company. Spend a couple of hours going through all of their procedures, such as collection of condominium fees, handling of building maintenance and personal matters. If your condominium has staff assistants, you should review your employment practices and procedures.

I also would review condominium documents carefully. Discuss these documents with the former president of the association, as well as with the association’s attorney. I have talked to many presidents of condominium associations who have not bothered to read the governing documents of their own organization.

The bylaws and the rules and regulations may have been adequate when the condominium was first created. But as the years go by, you will find that changes will be necessary. Some changes can be incorporated into the rules and regulations, and you will not have to go through the difficult--if not impossible--task of amending the bylaws.

You should also review the overall insurance coverage with the insurance company that carries the master policy for the association. Make sure you understand the extent of coverage (or lack thereof) for all possible insurance claims.

For example, if a fire occurs in one unit and spreads across the common element hallway into another unit, is there coverage for both units and, if so, what is the deductible under the terms of your policy?

You should obtain a copy of Roberts’ Rules of Order, to determine how meetings are to be conducted. While your association may not be governed by Roberts’ Rules, it nevertheless is a good guide to help you understand the process. There are professional parliamentarians who will be happy to spend some time (for a nominal fee) giving you guidance on conducting the board meetings, as well as the annual association meetings.

Conducting meetings is an art, and you must have complete confidence to be able to control the meeting--while at the same time permitting the membership an opportunity to fully discuss all concerns and problems.

It is also suggested that you review all existing contracts. Some may be outdated, and by comparative shopping, you may be able to save your association a lot of money.

You should determine whether the level of communication to the unit owners is adequate. Does your condominium association have a newsletter, and if so, how often does it come out? It is strongly recommended that every condominium association, regardless of size, have some form of communication to each of the unit owners at least three or four times a year. At the very least, summaries of the board meeting should be available to all unit owners.

The purpose of these minutes is to keep a short, concise history of the decision-making activities of your board of directors. They should be filed neatly in chronological order, for future reference.

What is the policy regarding board meetings? Are they open and accessible to all unit owners? Do you meet in a small apartment that does not permit more than a few board members to attend? Secrecy in condominium associations is perhaps one of the biggest problems that you will face as president of the condominium association. It is strongly recommended that all board meetings be open, unless you are discussing individual hardship cases or personnel matters affecting condominium staff.

There are a number of publications available regarding condominium associations, and you should contact the Community Assn. Institute to get a list of their publications. The address is 1423 Powhatan St., Suite 7, Alexandria, Va. 22314. If you are not a member of this worthwhile organization, you may want your association to join so that you may participate in its various conferences and seminars.

As I have indicated, your job as president is a thankless task. However, you are no doubt willing to serve as president because you want to ensure the stability of the investment which you made in your condominium unit.