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Time, Effort Required of Association Directors
For the owners who take the time and trouble to get elected to the board of directors of an association, like any other job, it requires education and training. People who serve as directors may get on the board with certain expectations and goals they would like to accomplish, but it is important to do the necessary homework to become a competent and contributing member of the board. Sometimes it is better to keep a seat vacant than to appoint or elect someone who does not even do the bare minimum to become acquainted with the legal documents governing the association and the responsibilities of the board.
Here is a basic primer to becoming a contributing member of the board.
Review the operating documents. Very few owners find a need to ever look at the declaration or bylaws. However, this is the "road map" for driving the association and each director should have a basic knowledge of "what the trip entails." That is not to say that a director should be able to interpret complex issues such as the nuances of insurance coverage, however, each director should be familiar with whether the association is on a fiscal or calendar year, the essentials of association maintenance responsibility, how many directors are elected, and so on.
The declaration generally contains all of the covenants binding the property, restrictions on use, financial obligations and remedies for compelling owners to follow the rules. Granted, many declarations are written in archaic legalese and often are loaded with developer references, but a careful skimming can lead to an understanding of the basic duties and responsibilities. The gaps can be filled in by an experienced manager and legal counsel.
The bylaws are generally easier to read and spell out the duties and responsibilities of the board and its members. These provisions should be more familiar to each director. Although the declaration has more authority, it is usually written in a more generalized fashion and the bylaws often address issues ignored by the declaration.
Familiarity with rules and regulations. More than the declaration and bylaws, each director should have a working knowledge of the contents of the rules. Since these are approved by the board itself and are subject to change from time to time, this is the document which has the most relevancy to each owner and director.
Although the members of the board are not policemen, they should be able to recognize violations and respond to questions from the owners. So long as the rules are reviewed by legal counsel, they should be enforceable and be readily available to any director.
Illinois (and Federal) law. Each director should have some familiarity with their legal obligations. There are many laws applicable to an association that are not discussed in the documents. Each board should have a periodic legal checkup or at least information from their lawyer as to important new cases or changes in the law, i.e., FCC rulings on permitting satellite dishes, developer reserve requirements, etc. Each director of a condominium should have an updated version of the Illinois Condominium Property Act and each director of a townhome or homeowners’ association should have a copy of the Illinois General Not For Profit Corporation Act.
Books, periodicals and other publications. National organizations such as CAI and IREM, as well as numerous individuals, have written helpful books and pamphlets to orient a board to its duties. A conscientious board member should not only be up to date on significant changes in the law and the basics of the legal documents, but also the practice and theories of running an efficient association. (My book, Guilt by Association - A Survival Guide for Homeowners, Board Members and Property Managers, can be ordered through my office.)
Seminars and programs. A good way to keep up on changes in the law, efficient techniques and exchanging ideas is to attend some of the many programs offered throughout the area on selected community association topics. Even if a board does not belong to the organization, many of their programs are promoted in the newspapers and are available to non-members for a nominal fee.
Have an orientation and goal setting session for new directors. Many people, not just new boards, have a need for an overview plus an intense discussion of risks and liabilities for board members. After each election, the new directors, in addition to being advised to read and go to seminars, should be force-fed a meal of "do’s and don’ts." Legal counsel, in conjunction with the property manager, should be familiar with the particulars of the property itself as well as the governing documents, so as to provide useful information at the first meeting of a new board.
Membership on a board of directors is a serious responsibility and should not be taken lightly. New directors should learn that they need to attend all meetings, review the materials in advance, pay attention to what is going on around them, ask questions and work through established procedures to efficiently operate the association and effect change where needed. The starting point is the familiarity with the legal documents either through reading or further education. An informed board is an efficient one and will make serving on the board a more rewarding experience, as well as provide the association with the guidance and leadership it needs.