> Homeowner Association News
Ask The HOA Expert - August 11, 2004
by Richard Thompson
Question: Our Board shies away from distributing draft meeting minutes but offers "Highlights" of the meeting to fill the gap. Is this acceptable? Answer: Approving meeting minutes can only happen at a formal meeting. But under that requirement, most Boards meet quarterly and the Annual Meeting minutes would be approved a year later. To keep the members informed, the Board should either publish meeting highlights in a newsletter or draft minutes which carry the notice "Subject to revision upon formal approval at the next Board/Annual Meeting." The information should be distributed within a week to be timely. To wait longer will result in some Board or Manager actions to already have passed. Sometimes this is no big deal but other times it can be if the action is new policy which all members should be given fair warning of. Distributing the draft minutes or newsletter through a flyer box and by email would be inexpensive and quick ways to get the word out. Question: Does a Board need a vote of the members to hire a management company? Answer: Normally the Board has authority to hire professional management unless the cost must be approved by the members. For example, some governing documents limit the amount the Board may raise homeowner fees each year. The cost of professional management would often exceed that threshold. If there is no such restriction, the Board can make the decision. Question: Our homeowner association's landscaping is looking pretty ragged after 30 years and needs renovating. Our landscape contractor has offered to put together a design that he will install. Do you think this will work? Answer: Landscaping is one an HOA's biggest assets. Renovation should be done thoughtfully since you will live with the results, good or bad, for many years. A landscape plan is something normally provided by a landscape construction and design consultant, not a landscape contractor. In designing the plan, there are several critical considerations: - Funds available
- Plant selection
- Ease of maintenance
- Drainage correction
- Planting bed to turf ratio, and
- Adequacy of irrigation system.
The landscape design plan should strive to include hardy native species that are pest resistant and drought tolerant to reduce cost and ease maintenance. Reducing the turf area will significantly reduce water needs and cost. The landscape plan and execution will cost a fair amount of money but the end result will be increased home values and livability. Don't chintz. Hire the best landscape designer you can and spend the money. If you have limited funds, after the basics like irrigation and drainage are covered, phase in the plan over several years starting with curb appeal first. Question: Are there any ethical guidelines with respect to HOA managers accepting gratuities from vendors? Answer: It's not uncommon for vendors to drop off gift baskets and the like at Christmas. These often get shared with office staff and there are no strings attached. Vendors view them as advertising. But a manager accepting things like gift certificates, money, free golf and airline tickets crosses the ethical line. If it's around contract renewal time or if there is a competitive bid process the vendor is participating in, any form of gratuity would easily be construed as a "kickback." Even worse is a manager that requires kickbacks from vendors. This is fraud in sheep's clothing since the manager has clearly breached the fiduciary duty owed to the client. Question: We live in a condominium. Several of our members have requested approval to paint their front doors a different color than the other units. Should the Board grant their request? Answer: Common wall communities usually derive value from consistent design and look. Glaring variations detract from market appeal and value. But, as time passes, so do consumer tastes. That all-the-rage chocolate brown paint color of the 70's is now a sales detriment. Rather than have the Board or Architectural Design Committee play political football with exterior colors, why not hire a color consultant to update the HOA color schemes and offer some compatible choices? Most paint supply companies offer this service free of charge in anticipation of selling their product. The consultant will provide options while maintaining a unified curb appeal. Have the consultant put together color boards with a number of trim and body color options which the members can vote on. That makes them part of a democratic process on a highly volatile subject. Punt this issue to the professionals and members. For more innovative HOA management strategies, see www.Regenesis.net. | 
