Part of the routine of running a homeowner association includes annual election of directors to the Board. In most, some directors step down and others step up to work with the remaining directors whose terms have not yet expired. Staggering terms makes sense so that there is an element of continuity. Seasoned directors bring with them perspective and history that is valuable to decision making. And it eliminates reinventing the wheel on issues that have already been discussed and decided.

But, pigs are pigs and politics are politics. There are occasions when the Board resigns en masse or is voted out by angry homeowners. This is usually prompted by a serious disagreement, allegations of fraud or some other malfeasance. Rumors and rumors of rumors abound. The outgoing Board members often carry a fair amount of resentment and antagonism with them. “Uncooperative” is a given and some engage in subterfuge trying to stir up discontent among their supporters. There is no joy in Mudville.

At times like these the new Board may be tempted to engage in witch hunting...pinning the blame on somebody for the problems. Witch hunting always finds a witch of some sort and the result is always the same: bad feelings among neighbors. It’s at times like these that the wise Board should weigh the benefits of continued conflict (none) versus making peace and getting back on track (good choice). Besides, burning witches violates the local fire ordinances.

Get the Records. There are some prudent things the new Board should get done quickly. If your HOA is self managed, getting the files and records from the outgoing board is a top priority. They are likely scattered between the President, Secretary and Treasurer but they need to be rounded up. The antagonism factor from past directors may interfere with the transfer (“NO, they’re MY records and you can’t have them”, or “I can’t remember where I put them” or, “I tried pot but didn’t inhale”) but press on. The records belong to the HOA and, if necessary, legal consequences should be brought to bear. Reminding that withholding records only reinforces suspicions of chicanery may also help in shaking them loose.

Perform an Audit. Once records are transferred, an audit by a CPA should be performed. There are a number of benefits to this:

1. Improprieties will be identified and provide a basis for prosecution, or,
2. The accused will be vindicated, which is good for healing wounds.
3. A line in time will be drawn from which the new Board can plan. Know where you are to know where you are going.
4. Books are reviewed by an outside, knowledgeable and objective professional.
5. The CPA will recommend improvements to the financial record system.
6. Relieves the new Board of past improprieties. Start with a clean slate.

Identify the Mistakes. The previous Board fell from grace for good reason but it’s important that the new Board understand why to avoid the same fate. Some common mistakes include:

• Bad communication with the members. Examples include holding closed meetings, failing to distribute meeting minutes or newsletters.
• Failure to get member feedback on proposed budgets, special assessments and policies.
• Selective enforcement of rules and collection procedures. A big no-no and sure fire way to create animosity.
• Domineering attitude. One of the most infuriating attributes a Board can have.

Make a list of where your prior Board failed and agree to do differently in the future.

We’re One of You. It’s a funny thing how some members believe the Board members come from another planet. Directors are subject to the same budget, fees, special assessments, rules and policies as everyone else. It’s important to reiterate that reality when assuming control. It’s also healthy for the Board to chant that mantra when proposing and enforcing policy and all that entails. If a rule is good, it applies to all. Message to the Members: We are you.

The King is dead! Long live the King! Now you’re in charge. As the new guard, you have a golden opportunity to right the unrightable wrongs. Remember why you got to this place and serve with honor. Don’t let your guard (or members) down.