"You don't achieve harmony by everyone singing the same note" - Doug Loyd

Tuesday, May 1, 2012

The Structure of a CID or HOA Board Could Be the Why Owners Do Not Get Involved

How your board is structured can either support more people to get involved or cause them to not want to get involved.

 Some Common Interest Developments or HOAs are split into sections or buildings.  I'll use Condos as an example.  Some condo communities are part of larger developments and have to follow their own governing documents as well as a master set of governing documents.  They also have their own board of directors who reports and gets approval from a master board that governs the entire development.  One that comes to mind is McCormick Ranch.  Then there are smaller communities that are made up of just the condo owners but, are split into buildings.  Each building has a set of governing documents and elects their own council of co-owners.  And each building also has a master board and governing documents they must follow. It would look something like this;

A  Master Development Board and Master Governing Documents Made up of all owners within the development

       1  Condo Community Board and Governing Documents Made up of just the owners who own title 
           in that specific condo community only.


                               Or


A  Master Condo Community or CID is divided into buildings and is made up of all the owners of title in
     the entire community with a master board and governing documents

     1.   Each building consists of only the owners of units within that building and has its own set of
           governing documents and a council of co-owners.

The way both are structured is really the same because weather its the condo community board or the council of co-owners they both serve the same function.  Just one is on a smaller scale than the other.  Really this type of structure makes things easier and function smoother.

Using the CID structure in my minds eye I see it being a situation where each building elects 3 people to each council of co-owners.  If there are 5 buildings then there would be 15 people total elected to the council of co-owners.  Then each building then holds an election to see which one of the three will sit on the master board as a board member to represent the interests of that building.  And will obtain any approvals needed from the master board for projects or architectural changes that owner request.  Council of Co-owners would also issue violations and have it's own monthly budget that would roll up into a single budget for the entire community at year end.

Then the entire community then will elect the 4 officers who will deal with pool, tennis court, landscaping, violations, reserve fund, reserve replacements, and manage its own budget as well as maintain a budget for each building, and admin duties.  Making the total number of board members and officers for the master board 9.

This gives the master board a better understanding of the issues facing owners who cannot attend monthly board meetings.  Making it more difficult for board members to ignore or dismiss their concerns since they may experience it too.  It gives owners the opportunity to do their part to serve the community who don't have much time to spare or cannot get around very well.  It also allows owners to get to know other owners and share new ideas.

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