Things Co-op / Condo Boards Should Learn from Recent News

If you're not on the Internet, you're likely to find yourself on the Internet anyway.

The number of sites created by individual owners to attack or publish less-than-favorable information about their co-op or condo board has grown. You can get on the Internet for next to no cost — and what is posted there can stay forever. Transparency of operations and multiple methods of communication has to become a major consideration of the board. Don't keep putting it off and leaving only negative comments floating around the web.

Flags cause problems —  not allowing flags causes even more problems.

If you allow the U.S. flag to be flown on holidays using a bracket attached to the unit or building, you can pretty much count on someone, someday, pushing to do more. They'll want to fly the flag every day, on a 20-foot pole in front of their apartment, or a service flag for the Navy or Marines, or stars in the windows to show a relative in harm's way, or their college flag on game day, etc. Someone will always push this envelope.

Start with polling your owners to see what's acceptable —  what the majority will stand behind. This is not an issue the board should just decide and then publish.

Find a way to deal with "going green" that avoids turmoil and notoriety.

It in the nature of co-op and condo boards to resist change. But the greening initiative isn't going away, and your board is almost always going to come across looking bad if you resist it. Clothes lines, solar panels, xeriscaping and other items and efforts are just the beginning.

Again, poll the residents regarding how they feel about the various issues and then get some real information (not just rumors) about which particular initiatives will help and what the options are. It may be just one owner that raises one issue, but you can count on more to follow.

Disasters happen — don't bet the building on them missing you.

This is the time to be smart,

not just an ax-wielder.

The last couple of years have seen not only a financial disaster hit the U.S., but also a string a natural disasters that have severely hurt a large number of co-ops and condos. Many didn't have flood insurance, or had increased the deductible or lowered the limits on their insurance coverage. Many canceled specialty policies covering hurricane, earthquake, wind or other things they hoped would miss them. All too often they bet wrong. As a result some co-ops and condos simply disappeared, the owners forced out of condemned units, with no hope of rebuilding. Some had to sell damaged buildings at a great loss and move on. Others had to live for months out of hotels, with only some or none of the cost covered, while the board wrangled with insurance companies, contractors and often courts.

Insurance is one of the most important things boards have to deal with – don't glance over it or bet your co-op or condo's future on Mother Nature ignoring you.

There's no substitute for good financial management and a sound reserves program.

The combination of foreclosures, budget shortfalls, embezzlement and not keeping up with maintenance took a heavy toll on cooperative corporations and condominium associations around the country. Those co-ops and condos that had cut corners often found themselves in deeper trouble, and in some extreme cases out on the street. This is the time to be smart, not just an ax-wielder.

State legislatures will cost every owner more money unless you show up.

Since very few states collect any hard data about co-op corporations and condo associations — and because, in New York State, Albany often doesn't understand downstate realities — state legislators often act because of the squeakiest wheel, meaning one or two apartment owners who have bumped heads with the board. Who's actually at fault rarely matters; it’s what can get a particular legislator the most positive exposure that usually results in bills that will cost all owners money. Boards need to be aware of how potential legislation will impact the association and all of the owners, and find a way to make their position heard.

Joe West has been a community-association manager, consultant and educator, and a national board member of the Community Associations Institute. He now produces related educational programs and websites, including videos on holding board meetings, buying insurance effectively and more. Many are available for free viewing on the website of his Community Associations Network (CAN), which provides daily news feeds for co-op. condo and community-association news. This was adapted from a post at his Community Association Considerations blog.