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Tips of the Month: Common Mistakes Boards Make

December 18, 2018 2:12 PM | Talia Lionetti (Administrator)

By : Tom Skweres of ACM Community Management and ACTHA Board Member 

Failure to educate. It’s essential that Board Members read and understand their governing documents, rules and State law. The board should know what is expected of them including how meetings should run.

Fiscal irresponsibility. Board members not taking time to read and understand the financials can cause problems. It is imperative that board members not fall into a false sense of security and assume that everything is running smoothly. There should be proper checks and balances including obtaining two signatures on checks.

Selective enforcement or failure to uniformly enforce governing documents. Often boards are accused of playing favorites. This would include board members attempting to institute new policies and ground rules. Over regulating can pose a problem. Rules should be reasonable. It is important to be fair and consistent.

Failure to maintain confidentiality or generating gossip. There are often times when boards discuss confidential items. It is wrong for board members to knowingly disseminate confidential items to residents. In doing so they are opening themselves as well as the association to possible litigation.

Micromanaging and abusing power. It is important that the board works with their management company for the daily operations of the property. Board members should not be making decisions in their self-interest. Failure to disclose personal interest can create conflict.

Failure to collect overdue assessments. While boards sympathize with owners during hard times, delaying assessment collections hurts the cash flow of the association, making it difficult to fulfill its financial obligations and setting a precedent for other owners to make late assessment payments without fear of legal action. Boards should have a collection policy whereby owners, at a certain period when past due, the board pursues legal action.


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