HOA New Year's Resolutions to Make Better Communities
2021 is coming to a close, and a new year means it's time to make resolutions. For homeowners associations, it means doing things better in the new year. Here are some of the best HOA New Year's resolutions that boards can make to improve their community!
1. Review and Update Governing Documents
An association's governing documents consist of its bylaws and CC&Rs, among other things. More often than not, communities neglect to review and update these documents, only to find out that they have long violated its provisions. An association's bylaws and CC&Rs were created and recorded at the very beginning of the community's inception. This document can date back years — even decades — ago. Many things can and would have happened in that time.
As part of the HOA New Year's resolutions, a board should consider reviewing and amending old documents. Doing so will allow these documents to reflect the times and environment today, as outdated documents can put associations in a bind. As new technologies emerge, HOA boards will likely need to do this every year to avoid getting left behind the times.
Amending an association's governing documents is not always an easy feat. For most HOAs, it requires a majority vote from the membership. Select changes may also face some pushback from homeowners who refuse to adjust to the changing times. A board must prepare itself for these challenges. Educating residents is critical.
2. Set Specific and Realistic Goals
A homeowners association should also set new goals for the coming year. But, it is essential to be specific when it comes to this. It is not enough to want to "save more money" or "improve homeowner satisfaction" as part of your HOA 2022 goals. Every association wants that. What will truly set an HOA apart from the rest is detailing those goals in specific and realistic terms.
For example, an association that wants to "save more money" should outline how much it wants to save and how it intends to achieve that goal. Perhaps the HOA can cut back on certain expenses or plan an initiative to go green. An HOA should also set the parameters by which a goal is judged complete. What counts as having accomplished a goal?
When an association desires to improve homeowner satisfaction, it should list how it can do that. Maybe homeowners want to feel a better sense of belonging, so hosting social events can help. Perhaps residents are displeased because of dirty common areas—the board should take a proactive approach to common area cleaning and maintenance.
It is equally important to set criteria so that an HOA can gauge and assign numbers to homeowner satisfaction. Then, it can proceed to obtain feedback by conducting surveys.
3. Communicate More Often
The success of any homeowners or condo association is communication. Homeowners need to know what is going on in their community. Boards should always maintain open lines of communication so residents can freely voice their concerns without fear or trouble. Similarly, boards must keep residents up-to-date on the community's progress and events.
4. Make Smarter Financial Decisions
Make smarter financial decisions, which usually involve preparing better budgets and wisely using resources. For preparing better budgets, an HOA board will need to look at a variety of factors such as inflation, wage increases, and price hikes for materials. But, it also requires a closer examination of previous years' actual costs. Looking into the association's financial history will help boards predict the coming year's expenses more accurately.
It is also crucial to take a conservative approach to cost-cutting. If an HOA has financial troubles, it makes sense to cut back on spending. To do this, a board should re-allocate resources and examine existing contracts to eliminate any redundancies.
Making more intelligent financial decisions means getting a leg up on collections. Many homeowners associations struggle with alarmingly high delinquency rates. An HOA board should double down on collection efforts by ensuring homeowners receive their notices and allowing for more convenient payment methods.
Contact Us
Stay tuned for more New Year's resolution tips next week! In the meantime, contact us Condominium Associates if you have any questions on how you can improve board communications, financials, and overall satisfaction in your community!
