Now let's turn our attention to the Functioning Board. This board takes the steps necessary to comply with the requirements of both the Statute by which it is governed as well as the terms and provisions of its governing documents. This board functions but may not have the foresight necessary to allow the community to achieve its most lofty goals.
-This kind of community typically has professional management but the Board may not be familiar with its manager's duties and may not even have a copy of the management agreement in its possession. Often, this kind of board will discover at some point that too much decision-making authority has been abdicated to the manager.
-This board may be take on projects and commit association resources to such projects without first gauging the community's sentiments. An example would be when the Board hires an engineer to draw up plans for an improvement project which requires membership approval before being assured that such approval will be forthcoming. A straw vote of the community either through the association's website, newsletter or other mailing can often help boards to determine whether or not to head down a certain path before association funds are spent.
-The common areas are maintained and repaired but this board may be reluctant to embark on any sort of upgrades for fear of community reprisals. This kind of board may also be reluctant to enourage the members to fully fund reserves and may, in fact, be reluctant to make some tough decisions required by their position as board members. These decisions can include pursuing delinquencies, enforcing architectural standards and other use restrictions, etc.
The functioning board does not play favorites, it just fails to strictly and uniformly enforce the covenants and resists making unpopular but necessary decisions.
Tomorrow in Part III of this blog series, we will at last discuss the attributes of that sometimes rare entity: the highly functioning board.
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