Board members of condo and homeowners' associations assume their positions with the goal of making a substantial and beneficial difference in their communities. However, achieving this requires the right environment.
Unfortunately, board members sometimes lack unity and may even prioritize personal interests over the community's well-being. This significantly complicates their work. Nevertheless, strategies exist to navigate these challenges and foster collaboration towards a shared objective: a thriving, harmonious, and successful community.
How do real boards put this into practice? Read on to learn how one community association board transformed their community from struggling to thriving, thanks to alignment, collaboration, and effective decision-making.
The community is made up of 91 units in 20 buildings. When it was built in 1972, it was the premier residential product in the area. But about 25 years ago, the board composition changed, and so did the community.
The former board of directors prioritized minimizing expenses to keep association dues low and neglected property maintenance. They took pride in this strategy, boasting that homeowner dues remained unchanged for a decade under their leadership. While some residents supported this approach, others recognized its flaws, including the increased costs of letting maintenance slide for years. We’ve all heard the saying “A stitch in time saves nine.” Deferring maintenance to save money in the short term usually costs more when the project is finally done.
This created a division within the community. Some were pleased with keeping dues low and more affordable, while others worried about the long-term consequences for their property values – and with good reason.
In a matter of time, the community suffered from deteriorating infrastructure, including leaking roofs, crumbling sidewalks, shabby landscaping, outdated aesthetics, and an asphalt-failed parking lot. Eventually, it was clear that immediate intervention was required to restore the property and the investment value of the members.
How did they fix the problems?
1. Established a common vision and goals
The board's initial step was to establish a shared vision for their community. Through extensive meetings and deliberations, weighing the advantages, disadvantages, risks, and return on investment, they reached a consensus. Their objective was to revitalize the community by renovating, modernizing, and enhancing the grounds and common areas. This would foster a sense of pride among residents, improve their quality of life, and increase property values. This vision became the foundation for all subsequent decisions, ensuring board member alignment and garnering community support.
2. Conducted self-assessment and sought professional assistance
Evaluating their own effectiveness was crucial for the board's progress. This involved taking a hard look at all aspects of community management, including financial health, governance practices, and resident engagement. To gain a complete understanding of the necessary tasks, they consulted with various specialists, such as roofing experts, engineers, and legal professionals.
3. Involved the community
To ensure community buy-in, the board actively sought resident participation in the decision-making process. They conducted surveys to gather feedback on proposed enhancements to the clubhouse, common areas, and overall aesthetics. By openly sharing the survey results, the board demonstrated that they valued resident input, which helped build widespread support for the renovation projects.
4. Established trust and transparency
Open communication and transparency were essential for the board to build trust and gain community support. They prioritized keeping residents informed through various channels, such as frequent meetings, email updates, conference calls, and video presentations. This consistent communication fostered a sense of openness and allowed residents to feel confident in the board's actions, both the obstacles faced and the progress made.
5. Spoke with one unified voice
A significant aspect of their success was a commitment to unanimous decision-making. Communicating these decisions with a unified voice ensured the community saw the board as a cohesive unit, strengthening residents' trust and confidence in the leadership.
6. Created a clear plan to execute decisions
With a three-phase renovation plan, the board tackled urgent projects like replacing the roofs and modernizing common areas. It required raising $4 million through five special assessments, each of which was passed with the community's overwhelming support. The board’s approach was always aligned: gather all necessary information, present options to the owners, and make decisions that were driven by the owners, ultimately benefiting the entire community.
The transformation at the community has been nothing short of spectacular. Through aligned decision-making and consistent communication, the overall aesthetics and infrastructure of the community improved dramatically. The new clubhouse, updated landscaping and modernized common areas improved the living experience and made the community feel like a resort.
Because of the improvements, property values have skyrocketed. Property values fell consistently in the mid- to late 2010s because of neglect.
Although the board started a lot of work on the property in 2019, a lot of those early efforts revolved around behind-the-scenes matters, so that phase didn’t add significant value to properties. But once they got to the visible projects, including painting, dumpster enclosures, common area renovations, the new clubhouse and landscaping, property values started increasing dramatically.
By 2020, units had nearly doubled in value. Most units sold within 1 to 2 days of being listed – and more than half never made it to listing. It was all word of mouth. People started asking realtors to buy homes in the community.
Key takeaways for boards
Successful community boards must establish a shared vision, maintain trust and transparency, and communicate with one voice. By following these steps, boards can align their members, make informed decisions, and ultimately enhance the community and quality of life for residents. Board alignment is a crucial element in ensuring that decisions are made effectively, trust is built, and the community moves forward positively.
For more guidance on aligning your board and making impactful decisions, listen to our podcast episode, Aligning as a Board for Maximum Results.