Page 6 - Nevada Cooperator February 2019

6 THE NEVADA COOPERATOR
—FEBRUARY 2019
NEVADACOOPERATOR.COM
BOARD RELATIONSHIPS
Board Optics
The Perception of Performance
BY MIKE ODENTHAL
C
ommunity association and co-op manship is often needed to get buy-in from resolutions.
boards typically consist of elected the folks most directly impacted by a given
volunteers whose job is to serve board decision. A board that does the right stand and expect that when they buy a unit, committee to create and send a monthly or
the best interests of the community in day-
to-day decisions both big and small. In an backlash from residents who interpret the association,” Moriarty continues. “While utes to owners electronically immediately
ideal world, every board would live and die board’s discretion as secrecy, or who don’t they might not volunteer to serve on the following a board meeting; installing a bul-
by its fiduciary duty, making well-informed see immediate positive results from the board, they nevertheless have an important letin board in the common area on which
choices that not only keep its community board’s endeavor.
or building solvent, but also maintain a
pleasant environment in which to live. But
would even that ideal scenario be enough? Thomas O. Moriarty, a principal at the law reasonably assess the merits of his or her
If a board is doing all the right things but firm of Moriarty Troyer & Malloy in Brain-
fails to communicate the hows and whys of tree, Massachusetts. “While perception of velop confidence and trust in that board.
its decisions to its constituents, will those performance alone is obviously not enough This can lead to frustration and skepticism.”
decisions be received approvingly?
Truth is, in addition to making good enough to ensure contentment among unit boards fail to communicate their process
decisions, it also falls to the board to com-
municate those decisions – as well as how a board has systems in place to ensure that that as negative. “While there are always
they were reached – to its community in a unit owners believe they have a voice in the exceptions based upon the need for confi-
clear and digestible way. The reasoning for process of governance, those owners may dentiality – attorney-client privilege, for ex-
this goes beyond just getting reelected; to never be happy with the results. In addi-
a diligent and capable board, optics may tion, if the actions and deliberations of the disclosure of certain information,” he says,
seem performative, but they’re actually a board are not transparent, unit owners may “in every other circumstance it is almost
crucial part of being open and transparent not even be aware of the issues the board always better to communicate as much in-
with the residents that board represents. is confronting – nevermind whether the formation as possible, even if the informa-
A certain amount of marketing and sales-
thing without showing its work can still face they become members of a self-governing quarterly newsletter; sending meeting min-
The Messaging Matters
“Optics are extremely important,” says who cannot obtain enough information to documents and share information.”
to deliver results, results alone are not
owners. The fact of the matter is that unless to owners, owners nearly always perceived
board has done a competent job pursuing tion is not what the owners want to hear.
“Knowledgeable unit owners under-
economic and personal interest in how the they’ll post community updates and notic-
board conducts its business. A unit owner es; or utilizing a community website to store
board’s decision making is not going to de-
Moriarty goes on to say that when
ample – or because statutes may prevent the
Reasonable unit owners will understand
that not all news is good news, and they will
be more content with board operations and
governance if they have more accurate and
reliable information, good or bad.”
A current board can make association
business easier for its eventual replacement
by being explicit with its decision-making
methodology. “It’s essential to pay attention
to the details, or there can be problems in
the future,” warns Mark N. Axinn, a part-
ner with the New York City-based law firm
of Brill & Meisel. “For example, when files
are reviewed by a future board, it should
be clear what the people at the time were
considering, and why a particular decision
was made. Records should be kept in such
a manner that someone who is not famil-
iar with an issue can easily ascertain what
happened and why certain decisions were
made.”
According to Jacqueline Abraham, Re-
gional Director for Lieberman Manage-
ment Services, which has offices in Chicago
and Elk Grove Village, Illinois, a resident
will occasionally run for the board with the
intended goal of improving its optics. “Once
elected, these board members realize that
there is a need for greater transparency, and
make efforts to steer the other members to
communicate more with the community,”
Abraham says. “This could mean forming a
Backlash
For a board, neglecting optics and ignor-
ing the public relations aspect of its job can
have abject consequences.
“Boards often forget the messaging as-
pect inherent in getting information to
owners before a new policy takes effect,”
notes Axinn. “This is especially true if there
is a new restriction or a new charge being
considered. For example, if a board decides
to implement a fee for subletting, it is im-
portant to convey to the owners that [the
purpose] of the fee is to raise funds to help
limit future maintenance increases.”
Different states have different laws con-
continued on page 14
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