I get asked frequently by media, boards, and even prospective home buyers: How do I know if my board is doing a good job? Basically, what assurance do I have that my community is governed well?
I typically encourage them to look for three general traits.
- Efficiency, or how well does the board safeguard and spend community's resources. Do they treat their fellow owners money as their own? Do they ensure that common areas and amenities are protected? Do they exercise their fiduciary duty wisely?
- Effectiveness, or how competently are things done. Are repairs made in a timely manner? Does the condition and operation of the community fairly reflect the general expectations of the residents? Is the association run in a business-like way?
and perhaps most importantly,
- Transparency, or how well does the board communicate what it is doing and why. Do all members have access to the same information. Are critical issues and decisions shared with the membership? Is homeowner input solicited when appropriate?
The most effective leaders, whether you are talking about community association boards, corporate leaders, politicians, or sports coaches, are those who communicate well and often, engage their constituents in the ownership of the group, are responsive to constituent needs, and make reasonable and competent decisions when appropriate.
In that spirit, CAI has developed some basic governance guidelines for community associations. We didn't attempt to create a detailed set of specific actions and behaviors for every situation, because of the many different laws that govern associations and the many different governance structures that they operate under. What we did try to do was identify some of the most frequent areas of confusion and contention and define some expectations that were simple, straightforward, and reasonable. We call them Community Association Governance Guidelines and they address such wide ranging issues as meetings, finances, debt collection and reserves.
You can find out more and download a free set of the guidelines on our web site. We hope that this tool inspires communications within communities, encourages boards to set and meet expectations, and leads to better governance in communities of all sizes, shapes, and forms.
