Board needs lesson in positive communication

Q: A reader sent a copy of a recent newsletter that was sent to the homeowners in her complex. The newsletter states: "Board meetings are exactly that. They are meetings that homeowners are allowed to attend; however, they are board meetings." The newsletter continues: "The board is not mandated to provide homeowners with anything at these meetings. The fact is that homeowners can only speak during the homeowner discussion period and this portion of the meeting is not a question and answer period. The board is under no obligation to respond to any question brought before them at that time."

Later on in the newsletter it states: "...members may attend these meetings; however, once the homeowner forum period is closed, the board conducts its business with no interruptions from those present. Homeowners are welcome to stay but cannot participate in the discussion, voting or ask questions during the remainder of the meeting."

The reader also wants to better understand the reserve finances -- what is the total reserve fund, at any given time; and what money has been spent on reserve projects. The reader states that dues have increased each year for the last three years, partially as a result of the funding of the reserves. The reader ends the letter with the following: "My question to you is simple. Does the community manager have the right to state what we are allowed and not allowed to know when it comes to where our funds are going? And is it proper that we are not allowed to know what is left in our reserve fund?"

A: NRS 116.3108 subsection 4C states that the agenda for a meeting of the units' owners must consist of a period devoted to comments by unit owners and discussion of those comments. Note that this section of the law pertains to homeowner meetings and not board meetings. NRS 116.31083 pertains to board meetings. Subsection 5 of this statute states that the agenda of the board meeting must comply with the provisions of subsection 4 of NRS 116.3108. It also states that time should be set aside for comments and discussion by the units' owners at the beginning of each meeting.

Please note that in both sections of NRS 116, the words "discussion of those comments" are used, implying that this is not to be a one-way form of communication with members commenting and the board remaining silent. The board does not have to enter into a debate with a homeowner and may often not have an answer to a specific comment or question at that time. Some comments and questions require an investigation or research either by the board or its management company. Some comments do not require a response as a homeowner may just be communicating (venting) his or her concerns and or opinions of "what is right or wrong" with the association. It is common practice and common courtesy for a board to acknowledge their homeowners at the board meetings, during homeowner comment periods, by responding to their comments as needed. After all, homeowners are their constituents who elected them to their positions.

The newsletter is absolutely correct when it states that the purpose of the board meetings is for the board to conduct its business. After the homeowner period, the board does not have to recognize any of its members in their discussion of the issues or in the voting on these issues. One of the purposes of the homeowner period is to allow homeowners to make comments pertaining to the action items listed on the board's agenda, so that the board members can hear the membership's concerns, and support or rejection of proposed board action items. Association government is a republic form of government whereby you elect directors to make many decisions on your behalf per your governing documents, state and local laws. Too often, boards cannot complete their business transactions because of the interruptions from homeowners that occur at their meetings.

Although the tone of the newsletter is harsh, the writer is correct in stating board meetings are for the board's business.

There is no state law that says handouts have to be made available to the homeowners at the board meetings, such as copies of the previous meeting minutes or financial reports. The law does require an association to provide copies of agenda, minutes and financial reports, upon written request by the homeowner under NRS 116.31175, NRS 116.31177 and NRS 116.3118 for which the homeowner can be charged a $10 per hour labor charge and/or a 25-cent per page photocopying charge. It is a legal requirement for certain topics to be discussed at least once every 90 days, specifically finances, which allows homeowners in attendance to listen to the financial status of their association under NRS 116.31083.

As to the reserve funds, the newsletter states that there are no secrets, as $2,000 is deposited into the reserve account every month. The money is used for roof leak repairs, landscape repairs, wall repairs or any major components that the association is responsible for maintaining within the community. The newsletter states: "You don't need to go any further than your personal expenses..." to know that utilities and insurance rates have increased. The final comment in the newsletter pertaining to reserves is: "It doesn't take a rocket scientist to know that the community irrigation system needs overhaul, that the roads need repairs, trees need trimming, the perimeter wall needs reinforcement."

It may not take a rocket scientist to know what maintenance, refurbishing and replacement projects are needed within the community (although many homeowners would not know that information at any given time unless the maintenance or replacement problem was personally affecting them), but it also doesn't take a rocket scientist to know how to write a more positive newsletter to your homeowners. If homeowners have been questioning reserves (it would be safe to assume this, based upon the information in the newsletter), it would have been simple to provide a quick history of the reserve balance at the end of 2004, 2005 and 2006, and to list the projects that were completed during that time and their costs. It would also been simple to restate what 2007 projects were scheduled for the association.

As frustrating as association management can be at times for both community managers and directors, good communication skills go a long way in building positive relationships with the membership.

Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.