2007 Issue 1

How Is Our Association Doing?
By Walt Williamsen, PCAM

It can be said with certainty that after the past twenty or so years of experience with the community association concept that includes condominiums and planned unit developments that there are many owners who do not have the available time or desire to be involved with the affairs and operations of their homeowner associations.  They have chosen a lifestyle where they do not want to be concerned about maintenance and upkeep of a private home or  hassled by volunteering over-commitment or other involvements.

The vast majority of the people who are “tuned – out” are good association members in that they pay their maintenance fees on time and obey the rules and regulations.  They are good neighbors who come and go about their daily activities.

However, the fact remains that any homeowner association and community association must function as a business to protect and maintain the property and provide governance.  The associations must have management and administration whether by volunteer unit owners or hired managers, or some combination thereof.

That said, it is imperative that all association members who may not be actively involved in the operations of the association be kept informed as to what is going on.  It not only affects the value of one’s investment in the property, but also the living conditions.

Here are key questions and answers that all owners should be aware of:

1. How many units are delinquent in paying the monthly fees and what are the actions being taken to control them?  Details are not necessary, but there should be a program in place to monitor and act on delinquent dues payers.
2. Are the bills owed by the association current and are service providers and contractors being paid on a timely basis?
3. Is the reserve for future repairs and replacements adequate?  When is the last time that a third party validated the current reserve accumulation policy?
4. Is the association operating within budget parameters? If not, why not?
5. Who is handling the bookkeeping and association funds? When is the last time that a third party reviewed the adequacies of the cash controls?
6. Are there any legal claims against the association?
7. What are the projects, if any, planned for the next twelve months?

It is not necessary to get mired in the details of these operational queries so long as there is comfort or assurance that the association officials and management have a handle on them. 

To tune out at this point and leave the driving to someone else is putting property values and enjoyment of the property at risk.

Here are some low tech/high tech ways to enhance communications to the involved and uninvolved:

• Periodic newsletters
• One-on-one conversations with board members
• Association web-sites
• Group e-mailings
• Attending at least one meeting per quarter

All businesses, including condominium and other homeowner associations, require basic communication systems to keep interested parties informed. 
If your association does not have a basic communications system in place, insist that there be one, even if someone has to be hired to do it.  All association members have an obligation to keep informed – for their own benefit and their neighbors too.

Walt Williamsen has vast experience as a property manager.  He has been active with CAI-CT for many years, serving as President from 2001-2003.   He is currently a member of the CAI-CT Board of Directors and serves as Secretary.  Walt is a frequent speaker at CAI-CT seminars and he coordinates our popular Ask the Experts: A Basic Course for Board Members program..  Walt is the owner of Condominium Consulting Services, LLC.