HOAleader.com - Tip of the Week - February 11, 2011
Published: Wed, 02/09/11
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HOA Board to Manager: No, Thanks. We've Got This.
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One problem: a homeowners association board of directors that can't
bring themselves to delegate responsibilities to their manager.
A bigger problem: HOA board members who over-delegate.
This week's tip highlights three duties your board should never
cede to your HOA manager.
1. Those duties specifically given to the HOA board.
"Managers shouldn't be doing anything reserved to the board in the
governing documents," says Elizabeth White, a shareholder and
head of the community associations practice at the law firm of
LeClairRyan in Williamsburg, Va. "That means anything legislative
in nature like the adoption of rules or setting architectural
review board guidelines and policies and procedures."
2. Signing certain checks and overspending your budget.
Don't allow your manager to sign checks over a set amount. That
amount depends on your budget, says Steve Daniels, coordinating
partner of Arnstein & Lehr's West Palm Beach, Fla., office, who has
advised hundreds of HOAs. Whatever that amount, the point is to
avoid giving your manager carte blanche to sign checks.
Similarly, managers shouldn't be able to bust your HOA's budget.
"Managers shouldn't be given the authority to spend in excess of
the approved budget limits," says Harry Styron, an attorney at
Styron & Shilling in Branson, Mo., who's drafted covenants for
more than 100 subdivisions and more than 40 condominiums.
3. Waiving rules.
"Managers shouldn't be allowed to waive late fees or make
compromises concerning violations by saying something like, 'I'll
let you park here for another week; then I'm telling the board,'"
says Styron. "I've seen managers make representations to owners
where an owner says, 'The manager told me that if I paid by this
date, I wouldn't have to pay the late fee,' and the board
says, 'What?'"
That includes approving architectural changes, says Bill Worrall,
vice president of The Continental Group, which is based in
Hollywood, Fla., and manages 1,300 condominium and homeowner
associations totaling 310,000 residential units. "Managers should
never be the final approver on architectural modifications in the
community. It's always a good idea to appoint a committee to
oversee architectural modification applications, but approval
should always come from the board. It's too easy for a manager to
be influenced--and, candidly, bribed--by an owner, and that can
affect the aesthetics of the community."
To get the details on all of the 9 Responsibilities HOA Boards
Shouldn't Delegate to Their Manager, see our new article:
http://www.hoaleader.com/members/541.cfm
Best regards,
Matt Humphrey
President
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