It’s an oft-repeated mantra when it comes to condo and HOA management: no two  boards are ever the same. Each is—or should be—a reflection of the community it serves, and each is made up of a unique blend  of personalities, skill sets, and individual administrative styles. A board is  almost like its community’s fingerprint.  

 That being said, there are some universal qualities or characteristics that all  successful, functional boards have in common—as well as some classic mistakes that can spell trouble for an entire community.  The following are some tips and thoughts from the professionals on how boards  can play to their strengths and avoid making all-too-common administrative  blunders.  

 Strength in Diversity

 “One of the first things that makes a board successful is having members that  come form diverse personal and professional backgrounds,” says Rick Fry, PCAM, a New Jersey-based property manager. “A board that’s able to bring a broad variety of ideas, thoughts and suggestions to the table  for consideration is always best. You don’t want a board of five accountants; it’s hard to be creative if everyone thinks alike. If you have a teacher, an  engineer, a salesman and an accountant, you will get a much broader array of  information brought to the board.”  

 According to Gary Wilkin, president of Wilkin Management Group in Mahwah, the  most successful boards treat their association as a business and approach their  responsibilities professionally, avoiding petty squabbles, politicking, or  personal axe-grinding and collaborating to maintain—if not improve—the quality of life in the community. If a board has members who don’t really want to do the work and just came aboard to further their own purposes,  things aren’t going to get done.  

 “What’s important are volunteers who are willing to give the time and participate in  the procedures of being on a board,” agrees Jane Balmer, general manager of Rossmoor Community Association in Monroe  Township. “There’s a lot of time and homework involved,” and that homework involves knowing what the hot issues are, preparing for the  meetings and wanting to make a difference for the building.  

 Rules of the House

 The structure for how a board runs can vary from board to board. Some are very  loose and informal, while others stick to a strict format. Usually, the  community’s documents guide how the board should run.  

 “We have wonderful governing documents to begin with, which lead us on how to be  a good board—and I think that’s the key to it,” says Balmer. “We use our governing documents, but we do try to follow Robert’s Rules as well.” (Robert’s Rules of Order is what the House and Senate are using when you watch them on  C-SPAN; for more information on parliamentary procedure, see the article “No Agenda” on page 10.  

 “Meetings always start with an opening statement to the effect that we are  following all the proper government documents and laws, and when a matter is  introduced for a vote, the board has the right to discuss it,” Balmer continues. “Then it’s open to the residents before the board votes on it. So, residents have the  opportunity to have input before a vote is taken on any matter, and that helps  to have a good meeting.”  

 The setting used for meetings can also have a significant impact on how a board  conducts its business. “We have a board room that’s perfect for meetings,” says Balmer. “It has an excellent sound system, the board sits in a U-shape, and the audience  faces the board.”  

 Management Relations

 “A critical component of a successful board/management relationship is a very  open and honest channel of communication in which the board clearly  communicates their expectations and provides follow-up and reevaluation as  times and circumstances change,” says Fry. “[Boards] need to evaluate and ensure that their management company is meeting  those needs—it’s really critical.”  

 “The key is always communication,” Balmer agrees. “That’s Number 1. I think it’s management’s job to make sure the board is always informed and can make good decisions.  Management must follow thorough on policies and decisions that they make.”  

 Trusting one another is also vital. “I’m an on-site manager, and what a good board has to be able to do is hire the  best candidate, and have faith in your judgement and that you are going to do a  good job,” says Brian O’Gibney, the general manager of Fairway Mews Community Association in Spring Lake  Heights. “It’s important to be firm, fair and consistent.”  

 Keeping the Lights On

 Good boards develop sound policy, ensure that the services required to run the  infrastructure of the building are delivered, and deal promptly with any  day-to-day administrative issues that come up within the association. When  problems arise between members of a board or with individual homeowners,  successful boards have protocols in place for handling them.  

 “Depending on the nature of the problem, in New Jersey there is existing statute  that requires an association to provide alternative dispute resolution (ADR)  hearings for homeowners who don¹t agree with a policy,” says O’Gibney. ADR is required by New Jersey law, and since its inception has saved  countless dollars and hours for both HOAs and residents.  

 “Very few problems get solved by two neighbors fighting over a fence,” Balmer says. “Go through the ADR process, or bring in a neutral party so cooler heads can  prevail. I don’t think a matter between a homeowner and board needs to be public discussion.”  

 Problem Solving

 When a board member is the one creating problems, “The rest of the board needs to meet behind closed doors and have a  heart-to-heart with the disruptive board member and explain the problems and  potential consequences of the behavior,” says Fry. “If it gets to be a renegade situation, most governing documents have provisions  for the removal of the board member, either by the board or by a vote of the  membership. I do know of boards who have pulled a renegade board member.”  

 There are also organizations that can help boards organize better and improve  how they conduct their HOA’s business. “Remember—board members are volunteers with other professional lives, so they may not be  experts in everything,” says Fry. “You can rely on people who are experts with dealing with condo associations or  community associations.”  

 According to O’Gibney, a good place to start might be a non-profit HOA-based organization like  the Community Associations Institute (CAI), a nationwide advocacy group, which  provides training and education for board members to make them more effective  in their responsibilities.  

 “CAI will help a struggling board,” he says. “Everyone doesn’t have to agree on everything. If you have a nine-member board that agrees on  every single thing, you have problems. It doesn’t mean you can’t get along and do a great job together—but you do need a difference of opinions. That’s where professional organizations help.”  

 What Not to Do

 When discussing successful boards, it may be just as instructive to talk about  what they don’t do as what they do do. Most experts agree that there are a few big mistakes  that boards everywhere should make a point to avoid. Here’s the short list:  

 Covering Up:“We all know from experience that if you try to cover up something it only gets  worse,” says Calvin K. Clemons, CAE, CMP and author of The Perfect Board, (Synergy  Books, 2005). “It’s always better to admit your mistake, make it public and then find a cure or  solution. There may be legal and financial problems along the way, but admit  the mistake anyway.”  

 Clamming Up:This goes hand in hand with covering up. More than almost any other factor,  communication is key to becoming a successful board. “Communicate back and forth and get that message out, no matter how serious it  is,” says Clemons. “If you don’t have money to repair the leaking roof, don’t hide that from the shareholders or unit owners. Tell the residents, and work  on a solution to raise the dollars and deal with it. There’s only so long you can put off the inevitable.”  

 Keeping a Weak Link:A team is only as good as its strongest player, and if your management team—or any of the professionals working for your HOA—aren’t playing to their fullest potential, it’s only a matter of time before problems arise. James Magid, the former president  of the New Jersey chapter of the Community Associations Institute (CAI-NJ), and  regional vice president of Lawrenceville-based Wentworth Group suggests that  boards periodically reviewing their management services—and even re-bid the job, just to confirm that they’re getting the best service for the best price.  

 Being Caught Unprepared:“One common mistake is having a board that is not properly prepared to fulfill  its functions,” says Clemons. “They do everything off-the-cuff, instead of performing what’s expected of them.” He adds that HOA boards should work with an existing plan and mission, and  should revisit it annually, or whenever new members come on to the board. By  revisiting bylaws, rules, and regulations on a set schedule, boards can keep  their governing documents up-to-date, improve time management, and have fewer  surprises during the year.  

 Allowing Lackluster Leadership: “Sometimes board members fail to be leaders,” says Wilkin. “Some members won’t address financial needs because they are worried about what their neighbors  will think [if they vote to raise fees or have an assessment.] People also  sometimes get on the board to prove a point, instead of doing what’s good for the community.”  

 Neglecting Newcomers:“Often boards don’t take the time to educate and inform the new board members of their  responsibilities,” says Clemons, who advises larger boards to consider holding formal orientation  sessions for new members, and smaller boards to assemble packets of vital  building information to be given to newcomers. He recommends “including the past minutes, financial statements, bylaws, and any pertinent  documents that the new person needs to know about.”  

 Bad Budgeting:Even in flush financial times, most boards run on very tight budgets. They don’t keep a lot of extra cash, neglect their reserve fund, and try to keep  maintenance as low as possible. This practice can backfire if unexpected  expenses come up and catch the HOA without enough to cover costs, says Paul  Bettano, CFO of Symes Associates, an accounting firm in Beverly, Massachusetts.  “Some boards get sticker shock [at the cost of repairs, or the amount of a  proposed assessment] and they don’t have the money to fix the problem, so they put the assessment away and ignore  it,” he says. “The problem with that approach is that you are guaranteed a special assessment a  few years later.”  

 In Closing

 Every building and association has its own character, and its own set of needs  and expectations. How well a board meets these benchmarks depends on the  cohesiveness, dedication, and commitment of individual board members and the  group as a whole.  

 Boards can gauge their success not only from the immediate feedback they receive  from residents as they carry out their duties, but by the long-term impact  their tenure has on the community at large, financially, aesthetically, and  otherwise. “I guess the barometer you have to use is whether the entire community is a  better place after you leave,” says O’Gibney.   

 Keith Loria is a freelance writer and a frequent contributor toThe New Jersey Cooperator.