Ask the HOA Expert

Written by Posted On Tuesday, 24 September 2013 10:15

Question: My neighbor and I have shared a fence for eight years. Our new manager summarily had it removed stating "it did not comply with the governing documents". Don't we have rights?

Answer: Even if the manager was technically correct about the fence violation, removing a long standing structure without notification and right of appeal is unconscionable. Since the fence had been there for years, you probably had a prescriptive easement and a right to keep it. Eight years is a pretty strong defense.

I suggest that you go directly to the board about the issue. Besides demanding that the fence be rebuilt, you should voice concerns about the manager's judgment. Maybe there are other cases of manager bulldozing which need to be addressed. Depending on how the board reacts dictates your next course of action. If the board restores the fence and sanctions the manager, hurray! If not, it may indicate a "regime change" is needed. That’s where you come in. Either run for the board or vote in those that are more reasonable.

Question: Our manager just quit citing that he manages 27 associations and that ours is too difficult to manage. What is a reasonable workload for an HOA manager?

Answer: Normally, a dozen HOAs for one manager is considered a full load, assuming that the manager has no assistant, full management services are being provided to each client and that the manager is attending board meetings. Of course, the number of units in each HOA is a significant factor. If large and complex, a couple of HOAs is a boatload of work for a manager. A manager with an assistant could manage 20 smaller 20-100 unit HOAs but 27 HOAs would kill anyone but Superman. However, I detect that there are issues with your particular HOA that broke your manager. You don’t give details, but one dysfunctional HOA client can require more effort than a dozen healthy ones.

In healthy HOAs, the board and manager act as a team where the board has oversight and the manager executes the business according to board policy, budget, governing documents, Management Agreement and good business practice. It can be quite a juggling act at times to determine which authority takes precedence. The board should allow the manager to execute the job without interference unless there is a compelling reason to do otherwise.

For example, the manager is charged with enforcing rules and collections. A member who is being leaned on for rules (or liened on for money) by the manager may attempt to cloud the issue by complaining to the board about the manager without real grounds. Boards that bite this bait too readily can undermine the manager's authority. A manager without real authority is an exercise in frustration and will not likely want to continue for long. Unless the manager has demonstrated repeated poor judgment or management ability, she should be allowed to make the call and expect to be supported by the board.

Another reason managers bail out is nitpicking from the board by micromanaging day to day management activity. Requiring the manager to justify why things were done adds considerably to the huge volume of urgent work an HOA manager is supposed to complete. Adding this to the stack is enough to break anyone. It is, of course, appropriate to question a manager’s procedures at a board meeting when all directors are present. But if the board does not demonstrate trust in the manager, most managers will not want to stay very long. Manager turnover is sometimes necessary but should be a last resort.

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