Page 1 - WFL Cooperator Fall 2019

Fall 2019 FLCOOPERATOR.COM Community association and co-op boards typically consist of elected volunteers whose job is to serve the best interests of the community in day-to-day decisions both big and small. In an ideal world, every board would live and die by its fiduciary duty, mak- ing well-informed choices that not only keep its community or building solvent, but also maintain a pleasant environment in which to live. But would even that ideal scenario be enough? If a board is doing all the right things but fails to communicate the hows and whys of its decisions to its constituents, will those decisions be received approvingly? Truth is, in addition to making good decisions, it also falls to the board to com- municate those decisions – as well as how they were reached - to its community in a clear and digestible way. The reasoning for this goes beyond just getting reelected; to a diligent and capable board, optics may seem performative – but they’re actually a crucial part of being open and transparent with the residents that board represents. A certain amount of marketing and salesmanship is of- ten needed to get buy-in from the folks most directly impacted by a given board decision. A board that does the right thing without showing its work can still face backlash from residents who interpret the board’s discre- tion as secrecy, or who don’t see immediate positive results from the board’s endeavor. The Messaging Matters “Optics are extremely important,” says Thomas O. Moriarty, a principal at the law firm of Moriarty Troyer & Malloy, which has continued on page 9 In a community association, it falls to the board to put out any fires that ignite among the property’s residents. But what happens when the blaze springs up between the board members themselves? Those who volunteer to serve on their community association or co-op board are likely to bring strong convictions – and personalities – to the table. As in any decision- making body, there is likely to be a difference of opinion, which, if the stakes and tem- pers rise high enough, can occasionally escalate into a war of words – or even knock- down, drag-out fisticuffs. Preventing any and all conflict is impossible, but minimizing and mitigating it is essential in order for a board to do its job. Board members should actively anticipate arguments among their ranks, and have a strategy on hand to ease tensions and reach an acceptable compromise before things get out of hand. Talk It Out One way to keep things copacetic among board members is to identify which attri- butes most contribute to a board’s functionality, and reach for those as a base-line when things start to drift off-track. Volunteerism is arguably the bedrock of co-op and condominium communities. One buys into one or the other with the expecta- tion of participating in the governance and operation of the property. Volunteering for board or committee service, though, is of- ten a matter of time – something many of us don’t have much of these days, especially the ‘extra’ kind. As a result in many communi- ties, it’s the older and often retired residents who have the hours to offer for board and committee service. The result is that often boards are dominated by older, longer-term residents, which in itself isn’t necessarily a bad thing – it’s just a fact. It should also be noted that the compo- sition of a board is usually representative of the residents of the building or association, and different types of communities tend to draw different demographics. So in a small- er community, perhaps a 10-unit co-op in a walk-up building with only studio apart- ments in a newly-fashionable neighbor- hood, everyone living there may be under 40 – thus, that board will likely be composed of younger people. Conversely, in an over-55 community, the board will mostly be com- posed of older people. But these specific situations may not be typical of most com- munities. Legislative Fix? Can a co-op corporation or condomini- um association do something specific with its bylaws or rules to require that board seats be distributed between various age groups? “Absolutely not,” says Mark Hakim, a co-op and condo attorney with Schwartz Sladkus Reich Greenberg Atlas in New York City. “You cannot create age limitations of any kind relative to the board. It’s illegal. And that’s under both federal and state laws and statutes.” Frank A. Lombardi, a principal at Good- “I think that the key to harmony on a board is that its mem- bers have the ability to agree to disagree,” says Tina Straits, Vice President and General Manager of Baum Property Management in Aurora, Illinois. “Any one group of people is not going to reach a consensus on every issue. Where there is disagreement, it is vitally important that board members listen respectfully to each other and understand that having a difference of opinion is noth- Managing Board Conflict How to Maintain Harmony BY MIKE ODENTHAL Board Optics The Perception of Performance BY MIKE ODENTHAL Board Demographics Old Guard Versus New Blood BY A J SIDRANSKY 205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED continued on page 8 continued on page 10 THE COOPERATOR EXPO 2019 WHERE BUILDINGS MEET SERVICES 180+ EXHIBITORS, SEMINARS, FREE ADVICE & NETWORKING WESTERN FLORIDA’S BIGGEST & BEST CONDO & HOA EXPO! 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