Building age, decay grows; reserves don't. When the problem gets worse, the result can be large special assessments, property value decline, member discontent and political paralysis. Here are some ideas on addressing all these.
Alone, or with the community, the Board should adopt goals: examples include improved property values, keeping buildings safe and water tight and minimizing insurance claims.
Then the focus should turn to tactics: what information and assistance is needed to decide on the best way to achieve the goals and who can assist in providing that information and assistance. It is unreasonable to expect volunteer directors to be able to decide on or implement tactics without professional help when the project costs or member discontent and suspicion are high or when the tasks are particularly complex. Management can help but its basic scope of work is for routine and not extraordinary services required to manage and finance with members' approval of a large rehabilitation project.
Ultimately, it is for the Board and membership to decide on community goals and how best to achieve them. Good professional consultants are valuable tools but no more than that. Consultants to consider are managers, attorneys, architects, engineers, construction managers and contractors, bank loan representatives, government building officials, product manufacturers, realtors and possibly others. In my experience, attorneys usually act as the quarterback (to the Board as owner) since many of the issues - voting procedures, construction contracts, bank loan requirements - are not just legal but need clear explanations to the members.
The membership must trust the Board for any project to succeed. Without that trust, every project will fail. This is achievable but takes work. Identify sensible, realistic repair goals and ways of paying for them (via special assessment, loans to the Association, membership payment plans); be candid; treat all members respectfully (even those who criticize the Board's plan, the directors' character or who never attend meetings); make and keep promises including timelines for presentations and distribution of information; offer financial alternatives whenever possible; consider CC&R amendments, even those that "sunset." And, of course, communicate regularly, clearly and candidly using every device and platform available for the community, including town hall style meetings, Q&A letters, PowerPoint presentations, website portals, newsletters, special project committees and others.
This article discusses the main principles that guide a successful project one that begins frequently with the shocking news that deferred maintenance and hidden building decay will swallow budgets but which can end with prudent, sensibly priced repairs, a new beautiful, safe and dry community and the confidence knowing that a good job has been done.
Effective in 2022, new laws and statutory amendments affecting California CID homeowner association operations
Once primarily an economic problem, hidden damage has become a much more severe problema matter of life and death.
California COVID-19 restrictions have been lifted, let us help guide your Board as you weigh your options and move forward.
Sign up for Berding|Weil's Community Association ALERT Newsletter, providing Legal News, Comments, and Great Ideas for Community Association Boards and Managers.
Please Note: To ensure delivery to your inbox (not bulk or junk folders), please add firstname.lastname@example.org to your address book and/or allow emails from berding-weil.com to pass through your automated anti-spam software or service.
As one of the largest and most experienced construction defect litigation departments in the nation, we have recovered over 1.7 billion for our clients.
The content on this website is strictly to provide information and neither the content nor transmissions through this website are intended to provide legal or other advice or to create an attorney-client relationship.