Tag: HOA education

The how and why of “boss” HOA presidents

This commentary is a follow up on my review of Kelly G. Richardsons’ article (Dictatorial HOA presidents and silent directors are at risk).

With all due respect to Richardson, his discussion of the role of HOA “boss” presidents and silent boards of directors makes no references to the causes of this common defect in the management of HOAs, or the more relevant, in ruling a community.  As an important CAI (Community Associations) lawyer advising and educating BODs on how to rule a community, we should expect not only answers but solutions as well.  His article does neither.

Richardson does  inform his readers about the makeup of good presidents: “Good HOA presidents understand the boundaries . . . . Good presidents are key . . . .”  He closes with the advice, “So, keep the good ones!”  He fails to address the legal structure of an adhesion contract and the CC&Rs that grant the BOD broad powers and authority. As such, the legal structure would not stand up to constitutional judicial scrutiny if the HOA were an arm of the state and not a private, contractual arrangement.

The legal structure prevents active, meaningful, democratic participation by members in board  elections and in amendments to the governing documents as found with public government. For example, members cannot file a petition, equivalent to a public domain initiative, requiring the BOD to hold a vote of the members on an issue, removing the absolute power to do as it pleases when contrary to the will of the  majority. The members would be able to contest the BOD’s position. Ihe absence of constitutional protections promotes the formation of power cliques that function as authoritarian governments. And so, we have “boss” presidents and silent boards of directors.

As a good lawyer, Richardson would probably say that this is the law, this is the way it is, and if you don’t like it change the laws. And who helped create and shape these pro-HOA laws?   For example, CAI has been involved since the beginning in 1964 in creating those Uniform Common Interest Ownership Acts (known as UCIOA) and adopted  with some modifications by a handful of states.

It’s up to YOU, as it has always been.

“It does not  help the sheep to blame the wolf. The sheep must not fall into the clutches of the wolf “ (Mahama Gandhi, fighting the imperialist British Empire).

Dictatorial HOA presidents and silent directors are at risk

This post is based on the article, HOA Homefront: Presidents are board members not bosses that acknowledges a serious and common problem with most HOA governance.  By Kelly G. Richardson | Kelly@Rodllp.Com. August 26, 2022.[1] 

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The HOA president’s role is often misunderstood and can result in a very serious board dysfunction. It can as well cause stress and risk for the president. First, it is critical to understand that the role and power of the HOA president are dramatically different than that of a for-profit corporate president.

In a for-profit corporation, the day-to-day running of the business is typically the responsibility of the president, the “boss” so to speak.”  However, in most HOAs the day-to-day execution of board decisions is executed by the association’s professional manager. “The HOA’s boss is not the president but is [] the HOA board.”

 The president has just one vote on the board, and that vote is no more valuable than any other director. Directors should take heed that those “who always automatically defer to the president are not fulfilling their responsibility to the association.”  Furthermore, corporation law holds any director  as implicitly agreeing if he does not post a dissenting opinion, which unfortunately, the governing documents are silent and do not provide an explicit right to file dissenting opinions.

By taking the “boss” role, a president is often outside his authority and disrespects the board that is the actual authority. Such a president could also be acting without corporate authority and exposed to personal liability for corporate commitments made without board approval.

Note 1. Kelly G. Richardson, Esq. is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association expertise.

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Restructuring HOAs case study supplement

The SCG case study is in preparation as a supplement to A Plan Toward Restructuring HOAs. This paper will be released soon. Here’s a peek:

Preface

For this case study, my objective was to advise the BOD of a $22 million revenues, 9,500 unit, active-adult community in Arizona as to its conduct in deciding difficult and controversial  issues.  I put my management/BOD skills to work and began the study. It is very important in the learning process to share recommendations with others, and to accept their constructive criticism. Readers can reject, modify, or remove recommendations. This approach sharpens one’s thinking and helps to make a more solid case for HOA reforms.

In regard to the SCG members at large, apathy — evidenced by silence or perhaps fear — prevailed as commonly found in HOA-Land. The vast majority of comments  to my posts on social media and elsewhere were irrelevant and without merit. They failed to address my messages concerning  violations of the laws and governing documents by boards of directors.   Rather, they focused on my HOA right or wrong, take it or leave it, and move out. 

 The necessary first step for democratic reforms, as proposed in A Plan Toward Restructuring the HOA Model of Governance, is the reorientation and reeducation of the pubic and especially boards of directors. Based on my experience I presumed that  they are uninformed and many prefer to remain uninformed; wrongly believing, and being led to believe,  that their HOA is  a wonderful country club instead of a legally binding contract between them and their HOA. 

The findings from this research reaffirmed this view of HOA directors and members regardless of income or education levels — they are highly uninformed about the legal and governmental issues of an HOA association. It seems that the  boards of directors over the years were and are heavily influenced by the Community Associations Institute’s teachings and programs.

Collectively referenced as the CAI School of HOA Governance  stemming from its focus on “large-scale associations,” such as SCG. Some 13 SCG members served as CAI members, including CAI presidents or directors, while serving as SCG’s presidents, directors, and committee chairs.  Its impact is devastating and cannot be underestimated.

This finding was very disappointing!  The behavior and conduct by the leadership displayed false and misleading information, an illusion of “no problems here,” and for the most part, silence. It supported the position of authoritarian and cult followers as maintained in the Plan’s view of the HOA Culture, and its description of the social and political dynamics at work in HOA-Land.

This Supplement is organized in time squence based on posts made to the HOA Contitutional Government website, including comments,  referencing or alluding to emails, to  the official Sun City Grand website’s News of the Day posts; and to posts and comments to social media websites: NextDoor (Desert Sage); Facebook’s Sun City Grand Members (AZ), closed by Administrator’ opposition; and Members of Sun City Grand AZ.

These exchanges are all reproduced as is, unedited except for  omissions of non-relevant sections.  In this manner, lacking audio-video materials, one can get a feeling of the message tones.

George K. Staropoli

February 14, 2022

HOA case study approach vs focus groups

The more familiar focus group methodology stands in sharp contrast to the Case Study approach, which is a top-down, managerial process, while focus groups are a bottoms-up approach to provide guidance to decision-makers. The key aspect here is how does the researcher use the data gathered, which is dependent on the depth and quality of its subsequent analysis.

An important caveat:  focus groups can be used to advance personal agendas by shaping the content of the issue or conditions to be studied and/or the phrasing and wording of the questions asked.  There is generally no debate between the respondents questions or criticizing their views.

HOA Case Study Overview

Simply put, the case method is a discussion of real-life situations that business facing executives.  IT IS AN EDUCATIONAL PROCESS FOR ALL HOA MEMBERS and will help in becoming a more meaningful, relevant, and productive participant in the governance of your HOA.   It is members only and independent of any HOA approval or regulations.

If properly conducted, the outcome  should provide your BOD with solutions that have much more merit than listening to the views gathered at focus groups or Q & A sessions (workshops, fireside chats, meet the board, etc.).

The method consists of being presented with a real event or issue or a case facing an executive – president, BOD, committee chair — and asking a question or two regarding what you would decide. As you review each case, you’ll put yourself in the shoes of the key decision maker, analyze the situation, and decide what you would do to address the challenges.   

Importantly, there is the requirement to present your views or opinions before the study group (online participants), and  after a discussion with other group participants you will be asked to volunteer your decision and reasons why.  If you feel that your decision[s] have merit you can present them to the president or BOD as you feel comfortable.  It would be appropriate to indicate the basis for your recommendations, the HOA Case Study Group that you participated in.

How to participate in a meaningful and instructive manner.  YOU are the decision maker! What to do?  (Harvard Business School, Executive Education). 

Here’s your chance to deal effectively with HOA issues and resolve the problems in a practical  manner. No unsupported opinions, feelings, likes/hates, etc.

  • What are the most important issues being raised?
  • Each case begins with a text description followed by exhibits. Ask yourself: What is the case generally about, and what information do I need to analyze?
  • Put yourself in the shoes of the case protagonist, and own that person’s problems. Ask yourself: What basic problem is this executive trying to resolve?
  • What recommendations should I make based on my case data analysis?

. . . .

Why are focus groups used?

(Copley Focus Centers)

“Focus Groups are generally used to gather people’s opinions, ideas, and beliefs on a certain topic or product.  While surveys or questionnaires can be useful, they can not capture what a person is thinking or feeling.  This is where a focus group will come into play. . . .  The main purpose of focus group research is to draw upon respondents’ attitudes, feelings, beliefs, experiences and reactions in a way where other methods are not applicable.

“Focus Groups are generally used when there is little or no knowledge about the target market.  Most commonly Focus Groups are used when a new . . .  service is being developed and the company is not sure how the public will react.  In this instance, a Focus Group is conducted to get opinions, ideas, suggestions, and reactions before the product or service is available to the public.  Once the information is gathered, changes may be applied to the service or product to make sure that it will be received well by the target audience.”

Publications on HOA constitutionality and legal structure

Peter F. Drucker was an internationally re-nowned management consultant in the 50s and author of the management “bible,” The Practice of Management. “A classic since its publication in 1954, The Practice of Management was the first book to look at management as a whole and being a manager as a separate responsibility.” Bob Woodward you should know.  View my publications (none more than $6.00) here:

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