(Don’t worry.  No discussion of the Presidential race which means it’s safe to read on.)

Many community associations are preparing to elect new directors this time of year.  As you approach elections, I offer a couple of observations for comprising a board of directors.

Beware of the “No New Taxes” Candidate.

In 1988, Presidential candidate George H.W. Bush famously proclaimed, “Read my lips.  No new taxes.”  Most of us have heard candidates for a community board of directors offer a similar promise or platform.  Associations, like all entities, should look for and consider opportunities to cut expenses.  However, a well-run community association must always base assessments on what it actually costs to operate the association plus an allocation for reserves for future expenses.  Once that budget is determined, the assessments are allocated accordingly.  Too many associations attempt to calculate assessments based on what they want to pay rather than the actual operating and reserve expenses.  Any underassessment now, requires additional assessments later.  It’s an unavoidable fact.  Under assessing year after year compounds the problem.  So, as the election and budget season moves forward, keep this in mind:  No one wants to pay too much but the most expensive mistake you can make, is under funding your community.

Beware of the Single Issue Candidate.

Directors make decisions that impact all aspects of their community.  Accordingly, if an owner has only one specific issue or project that they want to address or work on, then that owner may not be the best choice for a director position.  For example, an owner who seeks election because they want the lobby updated or want more fines for pet violations – that owner may be very passionate about a specific issue.  However, being passionate about a single issue doesn’t necessarily mean that the owner will make a good director.   So, as election season moves forward, keep this in mind:  Consider the skill set that a candidate has to offer and the association’s current needs.  The single issue candidate may not have any interest in the other 99% of the association’s business.

As always, if our office can be of assistance with elections or any other community association issues, please contact us.