By By A.J. Sidransky for Cooperator News

One longstanding challenge for shared interest communities is that of recruiting members to serve on the board and the board’s subcommittees. Given that these are unpaid volunteer positions, many residents prefer to leave the job to others, claiming they have neither the time nor expertise necessary to serve the community well. 

The result of this is that those who do serve often serve for many years. While this does preserve institutional memory and provides administrative continuity from year to year, the hard truth is that without periodic infusions of fresh perspectives and new ideas, boards tend to atrophy. That can lead to some problematic outcomes, from financial mismanagement (even outright fraud) to deferred maintenance and eroding property values. That’s why it’s so important for boards and managers to cultivate and encourage their neighbors to step up and do their part by serving. 

Out with the Old…

The old adage about not putting all one’s eggs into one basket applies to condo and co-op boards as well, says Jessica Ruiz, senior vice president of management, Southeast, for AKAM management, a real estate management firm with offices in New York and Florida.

“The biggest mistake a community can make is allowing all of its institutional knowledge, relationships and decision-making authority to sit with one person,” she warns. “A strong president can be an incredible asset, but a truly successful president should also be thinking about who comes next. Succession planning should happen continuously. Boards should intentionally involve other directors in major projects, rotate responsibilities, encourage newer members to lead committees and make sure multiple people understand the association’s finances, contracts, capital projects and long-term priorities.” 

That makes very good sense—but how can a current board encourage more participation and investiture from more reticent residents? 

“Cooperative and condo boards shouldn’t wait until a longtime president or other board member announces they’re stepping down” before putting out feelers to identify potential successors, says Mark Hakim, a partner with NYC-based law firm Schwartz Sladkis Reich Greenberg Atlas. “The goal is [to assemble] a group of informed residents, so the building never depends on just one person.” 

To accomplish this, “Boards should regularly invite newer residents to attend meetings, join committees, and take on smaller projects,” Hakim continues. This approach avoids the scramble to find volunteers when something major is afoot and time is short. “Experienced members should share what they know. Bring others into meetings with management and outside professionals, and keep clear records of contracts, projects, responsibilities, and key contacts.”

An approach that encourages change and growth in community governance also depends on those already in power. “In part,” says Michael Kim, of counsel with Chicago-based law firm Schoenberg Finkel Beederman Bell Glazer, “the existing long-term or long-time president must be open to sharing and developing his or her potential successor. Not everyone may be or should be groomed to be the future president; you should look to see who might be a good fit for treasurer or social committee chair as well. Some people are not so inclined, so the board needs to find logical and possibly creative ways to identify future leaders, as well as engaging the current president to be open minded and not feel threatened by this process, in which he or she will be significantly involved. As they say, the best predictor of a person’s future performance is that person’s past performance.”  

Barriers to Service

The most common reason residents offer for declining community or board service is the lack of time. People have busy lives, after all, and most don’t immediately jump at the chance to add yet another commitment to their calendars. Lack of expertise is a close second, with shareholders and unit owners feeling that they don’t have the knowledge or skill set to be an effective, competent board member. 

A third roadblock is often the result of personal observation. Residents who attend annual meetings that are contentious, chaotic, and unproductive are unlikely to sign up to be the direct targets of their neighbors’ ire—and who can blame them? 

“Time commitment and liability concerns are definitely factors, but those can often be addressed by setting clear expectations, providing support and training, and making sure board members understand they don’t have to know everything,” says Jacquelyn Dion, vice president of management services for Evergreen Management Group, located in Bedford, New Hampshire. “The biggest barrier is often the atmosphere. People are willing to volunteer their time when they feel their efforts will be appreciated and productive. If meetings become contentious, overly personal, or focused on conflict, it can quickly discourage good people from getting involved. ”

Addie Acosta is the president of Lakeside at North Haledon Condo Association, in North Haledon, New Jersey.  She has served on her board for many years. “People assume serving on the board is a massive time commitment, or that they’ll be dragged into drama,” she says. “And yes, if a board is dysfunctional, that fear is justified—but when meetings are well-run and respectful, the barrier drops significantly. Liability concerns come up too, but once residents understand how indemnification and insurance work, that fear usually fades. The real challenge is convincing people that board service doesn’t have to be stressful.”

Getting Interested

According to the pros, one good way to get members interested in board service is to start small, with an invitation to join a committee working on a relatively low-stakes task, like a social event or a community beautification project. These types of tasks have an end date, which can remove concerns people may have about long-term time commitments, and they tend to generate goodwill among residents, which removes concerns about conflict with neighbors. There’s also an element of flattery; if your board thinks highly enough of you to invite you to help plan an event or guide design decisions for the whole community, most residents take that as a compliment and accept the invitation—and that can lead to more involvement down the road. 

“Committees are one of the best leadership pipelines available to a community,” says Ruiz. “Someone may not be ready to commit to serving on the board, but they may be very willing to spend a few months helping with landscaping, finance, social programming, architectural review, or a specific capital project. Committee service gives residents an opportunity to understand how the association operates while giving the board an opportunity to see how those individuals collaborate, communicate, and approach decisions. It’s essentially a leadership laboratory. You begin identifying residents who ask thoughtful questions, work well with others, understand the difference between personal preference and the interests of the entire community, and are willing to do the work. Those are often excellent future board candidates. The key is giving committees meaningful assignments and clear boundaries. A committee should have a defined purpose, rather than becoming just another layer of governance or a competing board.”

Term Limits – Pros & Cons

The problem of being unable to find anyone to serve on their board has a flip-side: having board members cling to their positions for years on end. One possible solution for both sides of the issue is to impose term limits on board members, essentially forcing seats to turn over after a set amount of time. 

There are compelling arguments to be made both for and against such a policy. “The pro for term limits,” says Kim, “is that you avoid entrenched and possibly stagnant leadership that perpetuates the status quo. The con is that you are forcing out good talent just for the sake of circulating talent, which may not be readily available. As I believe Charles De Gaulle purportedly said, ‘The graveyards of the world are filled with irreplaceable men.’”

Hakim concurs, and suggests a compromise if circumstances call for it. “I often get asked about term limits, and I generally advise against them. Most buildings already struggle to find people willing to serve, and term limits just create another hurdle by pushing out experienced, capable members. A better compromise is requiring someone to sit out for a period after a certain number of consecutive terms.”

Acosta offers a view from the inside as a long-serving board member. In her experience, “Term limits can be healthy. They prevent stagnation and ensure fresh perspectives. They also force boards to think about succession planning instead of relying on the same person year after year.” 

That said, she does allow there are downsides. “If you have a small community or limited volunteer interest, term limits can create gaps in leadership. And when a long-serving member steps down, unless you’ve been intentional about documenting processes, you lose institutional knowledge. So term limits can work best in communities that already have strong engagement and active committees.”

Orientation & Training

When a new member does join the board, it’s vitally important to set that person up for success from the start. That means investing thought and effort into orientation and training, so the new member doesn’t feel they’ve been dropped into the deep end of the pool with no guidance or support. 

“In a high-functioning community,” says Dion, “new board members should receive more than just a stack of documents. They should be given an overview of the governing documents, finances, current projects, responsibilities, and how the board and management team work together. I also think having the manager or an experienced board member spend some time with them is important—to walk them through how meetings work, how decisions are made, and what their role is.”

Kim stresses that orientation for a new board member should contain a balance of technical and legal instruction with an equal dose of real-world operational advice and information about how the community functions day-to-day. 

Along with the board, the other key component in making board service more attractive may lay with the community’s management company, if there is one.  A responsive, supportive manager in a well-run property is an ally and advisor to the board, and will make the idea of board service less ominous to residents.

Ruiz emphasizes that “the relationship between board leadership and professional management can make board service significantly more sustainable by providing structure, information and recommendations so volunteer directors can make informed decisions without becoming the day-to-day operators of the property.”

Fundamentally, the healthiest communities create a leadership ecosystem, with experienced board members providing history and perspective, and newer members bringing fresh ideas, committees creating opportunities for residents to become involved, and professional management providing continuity between leadership changes. “The bottom line message,” says Kim, “is that in a condo, co-op or other form of community organization, if you like what is being done—or if you want to change what is being done—then you need to get involved. That is the essential nature of communal living.” That message should be presented in such a way that residents desire involvement rather than spurn it.

A.J. Sidransky is a staff writer/reporter for CooperatorNews, and a published novelist. He may be reached at alan@yrinc.com. 

By Kelly G. Richardson, Esq. CCAL

Question: Does the manager need to be at every meeting? We would like to get a new manager but it’s awkward discussing it in front of the current manager, who actually presides over the meetings which the board president is supposed to do. J.M., Tustin

Dear Kelly: Our board allows our paid maintenance manager to participate in every aspect of the meeting(s) including executive sessions. I find this employee to be very influential on the members and actually is allowed to sit in on the discussion and vote of their own contract with our HOA. Is this a matter for our HOA’s attorney? Do I have a right to pursue legal action against the board? Thank you, C.T., San Pedro

Dear J.M. and C.T.: California Corporations Code Section 7210 specifically allows HOA boards (nonprofit mutual benefit corporations) to delegate management of the corporation to a third party (i.e., a manager or management company), but it still places the ultimate legal responsibility upon the corporate board of directors. 

Apologies to my lawyer colleagues, but we are not the most important day to day service providers for HOAs – it’s the professional community association manager. The manager’s role is to advise the board and carry out the board’s instructions. There is nothing wrong, and much right, with managers attending most board meetings. The manager’s advice is often very important in helping the board make good and informed decisions (and to alert the board when more specialized expert input is needed). However, managers should advise the board and not set policy or make decisions. After receiving that advice, the board then decides what the HOA will do. 

There are some meetings in which the manager’s attendance is completely inappropriate, and the greatest example of that is when the board wishes to discuss the manager’s contract, performance, or compensation. The manager should not be advising the board on those subjects, since of course the manager has a major self-interest. There is nothing wrong or illegal with calling a board meeting and politely informing the manager they are not needed to attend that particular meeting. Experienced and quality managers know that not every board is a good fit and that sometimes HOAs make vendor changes – including the manager. The board should be entitled to expect that the manager will not try to interfere in board reviews or even discussion of management transitions. 

The manager should not chair board meetings – that is the role of a board officer, normally the HOA president. The manager should be an active participant in board meetings, because the manager provides the board information and advice on most decisions. So, managers in healthy associations should be a significant player in most meetings, but not the person actually running the meeting.

C.T., suing the board is rarely a good way to accomplish permanent change in your HOA. The outcome of litigation often is a great expense and has reverberations of ill will for years to come. A more effective and less destructive approach is to find a slate of good people who will commit to running the HOA properly, transparently, and without personal agendas or egos interfering with the exercise of good business judgment. Then, get your neighbors to elect them!

Thank you for your questions, Kelly

By Patricia Kaowthumrong for Success Magazine

If you feel more stressed at work than ever before, you’re not alone. In fact, several recent Gallup polls reveal that workplace stress is at an all-time high due in part to declines in employee engagement, a growing mental health and well-being crisis and poor management. The remedy? Intentional leadership and supportive managers who can restore connection, clarity and culture.

That’s where Verosa comes in. The London-based company offers leadership and management training programs that equip professionals with practical neuroscience-based strategies and tools to make the most of their teams. Since Verosa was established in 2019, founder and CEO Beth Hood and her team have blended deep executive coaching expertise with interactive, thought-provoking methods to help participants around the world—including individuals and companies in Europe, the Middle East and the United States—make a better impact on their teams and wider organizations.

Verosa was born after Hood left a career with the British government and moved into the field of organizational psychology. While working as an executive coach, she noticed the gap between offerings for leaders that were either very focused on inner stability and personal development or business acumen, foresight and critical thinking.

“I felt like there was a gap where those two things could meet quite neatly, and that was where Verosa was born and actually also where the ‘relationship cycle’ came from that informed our philosophy,” Hood says.

With support from a group of like-minded colleagues, Hood built programs that moved away from the one-on-one executive coaching and the traditional leadership training that’s offered in a lot of workplaces. Instead, Verosa’s hands-on, human-centered experiences help managers and leaders utilize the relationship cycle, a process that starts by understanding today’s “VUCA” environment.

What Is a VUCA World?

VUCA is a situation characterized by volatility, uncertainty, complexity and ambiguity. While VUCA is based on the leadership theories of Warren Bennis and Burt Nanus, it was first introduced more broadly in the late 1980s by the U.S. Army War College to describe the complex and unpredictable environment after the Cold War. The term has been widely adapted by the business world to describe the challenges of leading in an unpredictable environment (sometimes an “H” is added to the acronym, for “hyperconnectivity,” to incorporate the age of social media, smart phones and the internet).

With predictability at an all-time low, Hood says VUCA+H describes the environment everyone seems to constantly live in now—a “permacrisis” marked by unforeseen and unpredictable events such as the COVID-19 pandemic, war in Ukraine, conflicts in the Middle East and economic uncertainty. All these things impact organizational culture, making the modality of risk aversion that companies used to manage disruption in the early 2000s and before ineffective.

“Those jump scares that we get in horror films weren’t just happening then, now they’re happening all the time,” she says. “So, because of that, we need to create a leadership methodology, a way of being, that responds to that reality well.”

In Verosa’s programs, the relationship cycle comes down to leaders’ abilities to pause and develop the mindset, skills and strategies to navigate uncertainty with confidence rather than have all the answers. “It’s not actually rocket science,” Hood says. “It’s simple neuroscience.”

Rather than follow their natural human instincts to move into a mode of fight or flight in chaotic times, which can lead to burnout, individuals learn how to choose pause over pace, depth over breadth and clarity over urgency. But this mindful approach isn’t new. It’s based on many historic ways of thinking, such as Buddhist teachings, businessman Stephen Covey’s stoic rhetoric—and, notably, psychologist Daniel Kahneman’s ideas on the System 1 and System 2 modes of the human mind.

“[Kahneman] essentially identified that we have these two working systems in the brain where we’re either working very instinctively, which is often what’s happening in the fight, flight, freeze phenomena,” Hood says. “Or we can move into a System 2 space, where we are taking in data and using our prefrontal cortex in a more sophisticated way. And when we’re able to move and stay into that space, we make better decisions.”

To get leaders to a place where they can essentially be the “calm” in a mad world, Verosa offers programs tailored to clients’ needs that can be completed within various time frames, whether that’s four days, 12 months or multiple years. No matter what path participants take, though, progress always starts with self-awareness.

“We’ll start with the individual, and then we’ll look more relational—the immediate relationships,” Hood says. “Then we’ll start to look at the system beyond the relationships, and then finally take an enterprise lens.”

Why Emotional Intelligence Matters for Leaders

One of Verosa’s greatest challenges is working with talented leaders who struggle to think differently from the ways that have brought them success in the past but aren’t serving them now. But Hood says taking small steps is key, and even tiny changes can make a big impact, such as implementing mindfulness or deep breathing or periods of reflection before meetings. “If there was a golden thread running through all this, it is emotional intelligence because emotional intelligence starts with self,” she says.

If leaders can turn within, tune into their strengths and weaknesses and develop emotional intelligence, they can hopefully make the workplace a less stressful place for employees, too.

4 Tips for Leading in a VUCA World

Hood offers four tips for navigating today’s unpredictable world.

Call out what you’re afraid of. “What is it in your environment that’s unpredictable?” Hood says. “Move along each one and just jot down some notes. Unless you can name it, you can’t actually deal with it.”

Make peace with your fears. Accepting what you can’t change on your list of “monsters” is important. To cope, Hood recommends turning to mindfulness. “Getting present in the moment that you’re in and not thinking either backward or forward,” she says.

Develop optimism. While humans have a horrible negativity bias, gratitude works wonders in fast-moving environments. “It serves us better to be thoughtful about all the great things around us that we are blessed with,” she says.

Build in periods of pause. Give yourself the permission and time to collect the right data, which will help you make better decisions in the long run. “Spaciousness is the antidote to VUCA+H,” Hood says.

Image of Beth Hood

By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Dear Kelly: Thanks for your articles on rules. We follow the process correctly. I have a question. If the proposed rule is changed based on input from the community or board members before or during the second meeting, must it go out for community comment again or can the board adopt the revised (proposed) rule at the second meeting.  It seems similar to the gut and replace approach of the legislature which can take an introduced bill on one thing and replace it with a wholly different bill without hearings, debate or public awareness as happened last year with AB130. B.S., Murrieta.

Dear B.S.: The rulemaking process is stated in Civil Code Section 4360. The statute requires that the notice sent out to homeowners must contain the text of the proposed rule change. At the second board meeting (at least 28 days after the publication of the proposed rule change) important input occurs during the mandatory open forum opportunity on the proposed rule change (Section 4360(b)), and the board may well decide to modify the proposed rule change. If during that second board meeting, the board changes the proposed draft rule change, the process starts over- and the new proposed rule must be announced to the members at least 28 days before it is voted upon. The requirement is important because members may decide whether or not to attend to attend the board meeting based upon the announced proposed rule change. 

Rule changes should be adopted carefully and in full compliance with the statute, to avoid the possibility a rule change might be invalidated because it was not adopted “with substantial compliance” with the statute’s requirements. Hopefully we would all agree that crafting the rule well is more important than passing a rule quickly. Best, Kelly 

Kelly Richardson: The board is planning to adopt a rule that gives the managers complete authority to review and decide the rule violation process.  Board members have refused to hold the owners’ Rules Committee Meetings for seven months.  Our bylaws read Rules is a Standing Committee with owner duty for: “Investigating reported violations of the published rules and regulations and making recommendations to the board.”  Please confirm that a board is not permitted to adopt a policy manual rule that voids a Bylaw. Thank you, T.H., San Diego

Dear T.H.: It may be much more convenient to try to grant to the manager full authority to issue discipline, but that is not what Civil Code Section 5855 requires. That statute discusses discipline being issued by the BOARD, not the manager, and sets forth some important procedural requirements for the informal disciplinary hearing. Those requirements must be followed for the discipline to be effective, because Section 5855(g) states that disciplinary actions not following the statute are not “effective,” meaning they will not hold up if challenged.

I think a wise manager would not want to take on that responsibility, even if the statute allowed it, because managers are there to make recommendations and carry out decisions, but the ultimate decider has to be the board of directors, per Corporations Code Section 7210. 

T.H., also the HOA’s rules must not conflict with the HOA CC&Rs or bylaws, pursuant to Civil Code Section 4205. Thanks for your question, Kelly

By A.J. Sidransky  For COOPERATORNEWS

At the bedrock of a shared interest community, like a co-op or condo, is how and by whom the property is managed. While self-management may make the most economic sense for smaller communities, and there are certainly good examples of effective self-management in larger communities, most co-ops and condos of any size engage professional on-site management.

In most cases, those services are provided by a management company. Like all businesses, property managers seek a profitable provider/client relationship, and their services are generally subject to a contract designed to protect both the management and the community, laying out all the responsibilities and obligations assigned to both parties.

The Same, But Different 

“A contract is a legally enforceable agreement between two parties bound by promises they make to each other,” says Jeremy Kay, an independent attorney located in East Bridgewater, Massachusetts. “In the case of a management contract, it is an agreement for the manager to perform services for an association in exchange for payment by the association. The scope of services and the amount of the payment are up to the parties to determine. Putting the agreement in writing is done to memorialize the terms of the agreement and allow both sides to revisit what was agreed upon. The goal should be that the written contract is clear on its terms and that the management company’s obligations are clear. Clear terms help resolve disputes and avoid potentially expensive litigation.”

Most modern management contracts are fairly similar, says William McCracken, a partner with Moritt, Hock & Hamroff, a law firm with offices in New York and Florida. “Paragraph 1, we appoint you…,paragraph 2, these services will be provided…,etc., etc.  Everything is covered there, but it’s initially a boilerplate document, so it needs clarification. It’s important for the board to look at this closely to make sure the management company understands the board’s expectations. Then there are other typical provisions about money, term, and length of contract, indemnification, etc. That’s the heart of it.”

That said, every community is different, and each has its own specific menu of expectations and requirements. In today’s highly diversified and increasingly case-specific world, management contracts are tailored to the specific needs of a community—and they’re evolving as a result.

“Basic terms depend on the needs of the association and conversely, that’s what the management company is contracted to do,” says Michael Simone, an attorney and principal of Simone Law Firm, located in Cinnaminson, New Jersey. “For example, some associations are only seeking assistance for the financial aspects of their operation. Other associations may be more interested in the physical maintenance of the property or the management of tenant relations. Each should be handled in specific clauses in the agreement outlining the details of management’s responsibilities.”

Nuts & Bolts

Regardless of what specifics your community may require, there are certain basic components that should be reflected in all contracts. These include very basic things like the terms of the contract, the parties’ names, delineation of responsibilities, fees and charges, and reasonable expectations for things like how and when meetings are held, or who should attend. 

Other important clauses include protocols for providing a smooth transition in the event of a management change (a next clause provision), the circumstances under which a contract can be terminated, who has access to computer programs, banking logins, proprietary legal information, and any other systems used by management. “It’s all about who owns what,” says Simone. “One of the main issues that should be clear and protected is always for the association to have ownership of their own products. The association, not management, should own its website, accounting software, and any other related computer products.”

In terms of how long a typical contract is, McCracken explains that it varies.  “Anything from one to five years; most typically they are year-to-year. At some point they all become a year-to-year arrangement. They don’t just expire; typically, they roll over. The reason why there is a longer initial term is because it’s expensive for a managing agent to start up a new client relationship. The management company doesn’t want to be terminated after six months; they need to make back their initial investment. From a legal point of view, from the board’s side, you want the ability to exit the agreement on reasonable terms at any time.  Boards need to be able to terminate without cause on 30- to 60-day notice. To be able to say it’s not working, and we are moving on. That makes the term requirements in the contract nearly moot. The ability to exit is what’s important—not the length of the term in the contract.”

When it’s Time to Part Ways

Like some marriages, client/management relationships don’t always work out. When that happens, what’s to be done? And what are some of the reasons why a building or association might feel it’s time to cut ties with their management company and take their business elsewhere? 

Breach of contract is a big one, say the pros. Kay explains that “breaching a contract is when a party fails to perform their obligations under the agreement. But there is a distinction to be made between breaching a contract and terminating it. If a party breaches a contract, it can become liable for damages caused to the other party. Massachusetts General Laws, c. 183A, Section 10(e), provides that any contract between a manager and an organization of unit owners can be terminated by the organization of unit owners for cause with 10 days notice, during which time the manager has an opportunity to cure any default. In any case, the organization of unit owners can terminate the contract with 90 days notice without cause.”  

Simone adds that in New Jersey, “In any contract [dispute], you look to see if there was a duty breached that would be considered material. No company is perfect, and they will make mistakes. The question is, how egregious were the mistakes? If a board determines that an action on the part of management was a material breach, that’s when the association puts in writing why there’s a provision to cancel. Typically, the contract will have recourse for either party, since sometimes it’s the association that has breached their duty, and the manager will want out.” 

In other words, says Simone, the door swings both ways. If a client community doesn’t uphold their side of the contract, the manager or management company doesn’t have to stick around; “They can quit.”

Kay concurs. “The management company can terminate the relationship as is permitted by the terms of the contract,” he says. “Were a manager to terminate the relationship in violation of those terms, that would be a breach of contract and potentially result in the manager becoming liable to the association for ensuing damages.”

That said, Kay continues, “Most disputes between management companies and associations tend to arise contemporaneously with their disengagement.  Accordingly, I advise that the management agreements be as clear and unambiguous as possible when it comes to their respective obligations. This is especially true when it comes to terminating an agreement before its term is up.”

Advise & Consent

Given the stakes, it’s vital to involve your building or association’s attorney in reviewing and negotiating your management contract. After all, it’s a legal document, and as such, it makes good sense to get some expert eyes on it before signing on any dotted lines.  

“As attorneys,” says McCracken, “we always talk to our clients about their specific goals with respect to their management contract, new or renewal, and which goals might be particular to their building. For instance, did they have a problem in the past with an agent, and want the new agreement to reflect that experience, for instance?  Generally, the things we are looking for are agreed-upon duties, and that the agreement covers the field. We want to make sure the management will do what needs to be done. Sometimes you have to add in specifics. It’s also very important to avoid the hidden charges in an agreement. Typically an agreement will say if ‘X’ happens the manager will get paid ‘Y.’ We want to make sure that that only happens if the board agrees to it. For instance, upon the refinancing of an underlying permanent mortgage for a co-op, whether the management company earns a mortgage brokerage fee. Did they actually earn it ‘with the board’s consent?’ Those terms and conditions should be clear in the contract.”

Management contacts should always be reviewed by counsel, and should contain language that adequately outlines and delineates the manager’s responsibilities and fees. They should reflect the needs of each specific community, and provide a path out for that community if issues arise that can’t be fixed. Effective management contracts are a vital administrative and legal component for shared interest communities, and boards should take them seriously.

A.J. Sidransky is a staff writer/reporter for CooperatorNews, and a published novelist. He may be reached at alan@yrinc.com.

HABITAT Magazine

Q: A shareholder in a Queens co-op recently found a buyer willing to pay cash for her apartment. Documents were provided showing that the buyer could afford the apartment, the fees and the renovations. But the co-op board rejected the application. The shareholder emailed the board to ask for clarification on what it’s looking for in a buyer. She never got a response. How can a shareholder find out what the co-op board is looking for in potential buyers?

A: In New York City, a co-op board does not have to tell you why it rejected your buyer. It has the power to reject a purchase application “for any reason or no reason” — and isn’t obligated to spell out the reason. The members probably won’t tell you what they’re looking for, either.

“I’m always loath to give any particular criteria, because it locks the board into something,” says Steven Sladkus, a co-op board president and partner at the law firm Schwartz Sladkus Reich Greenberg Atlas.

The financial health of applicants is important, such as how much money they will have after closing, their debt-to-income ratio, a good credit profile and stable employment, Sladkus says. Other factors include whether applicants have a history of filing lawsuits, particularly against landlords.

A seller’s best move is probably to hire a broker who is familiar with the building and has experience guiding sellers through the process there. “If you have a broker,” Sladkus says, “they’re hopefully vetting purchasers for you so you don’t waste your time.”

Though vast, a co-op board’s powers are not limitless. A board cannot reject buyers for illegal reasons under federal, state and city fair housing laws. This would include basing a decision on their status in a protected class such as race, religion, national origin, age, disability, sexual orientation and gender identity, says Julie Schechter, a partner at the law firm Fox Rothschild. If the board does not disclose the reason for the rejection, and there is no other evidence, discrimination cases can be difficult to prove in court.

There have been repeated efforts to make the application process more transparent in New York City. Most recently public advocate Jumaane Williams sponsored a bill that would require co-op boards to provide their reason for denying a sale to a potential buyer within five days of making their decision. Such bills have met with stiff resistance from co-op advocates, and so far none has advanced in the City Council.Westchester County, however, does have a law that requires a board to disclose to an applicant its reason for rejection.

By Emily Myers For HABITAT Magazine

At 60 Court St., a switch to battery-equipped induction stoves by a third of unit-owners shaved $400,000 off the riser repair costs after a gas shutdown. (Photo courtesy Ted Booth)

A gas leak at 60 Court St. could have triggered a $1.5 million repair bill. Instead, the 33-unit downtown Brooklyn condo shaved $400,000 off the building’s riser replacement by giving owners the option to switch to battery-equipped induction stoves. “We saved because we didn’t have to do all the branch lines,” says board president Ted Booth, “And that was two thirds of the project costs.”

The shutdown couldn’t have come at a worse time. The condo was just days away from starting a major roof replacement and reserves wouldn’t cover both projects. “We had to stop that and lost the downpayment on the roof,” Booth says. It was also October, the start of heat season when heat and hot water are a necessity, since the leak put the condo’s gas-fired boiler out of action. A temporary oil-fired boiler was brought in — at significant cost. “Between the boiler rental and the oil it was probably $250,000,” Booth says.

The leak was in the cellar, where gas enters the building, but when a shutdown happens all the risers need to be pressure-tested before supply can be returned — which can take up to a year or more. At Court St., engineers and plumbers told the board the original risers were most likely leaking in multiple places. Fittings and valves would also need to be replaced.

One option for boards in this situation is to consider electrification. For the condo to move away from gas entirely the boiler would need to be replaced with electric heat pumps for space heating and domestic hot water. That would have required upgrading the building’s electrical capacity, and estimates for the work were as high as $6 million. “It felt like an impossible situation,” Booth says.

Ruling out electrification due to cost, the board knew gas lines would have to be replaced to the boiler. They then learned about induction stoves with built-in batteries. The battery allows the stove to plug into a standard 120 volt outlet, eliminating the need for electrical upgrades. If enough owners were willing to make the switch, the scope of the gas repair work could be scaled down. “We ended up giving owners a choice,” Booth says.

Lines were restored for unit-owners wanting gas, but for more than a third of residents who chose to switch to induction, branch lines were disabled. For them, the original gas appliances were replaced with 30-inch stoves bulk-purchased from Copper, a company that produces a battery-supported induction range that plugs into a 120 volt outlet. This cut the cost of the gas repair work to $1.1 million. For boards with aging risers, Booth says it’s definitely worth floating the idea of a building-wide switch to induction. “That might be more fun than writing a big check to a bunch of plumbers and tearing open walls.”

Getting all 33 unit-owners to make the switch to Copper stoves would have cut the cost of gas repair work by around two-thirds. Branch line repairs are the most disruptive for residents and often require plumbers to go through cabinetry and walls to access pipes. However, a 100% switch was near impossible; some owners had recently renovated, and some couldn’t accommodate a 30-inch stove, the only Copper model currently available. (A pilot project providing 100 simplified 24-inch Copper stoves to New York City Housing Authority residents is expected to expand the company’s offerings in coming years.)

At 60 Court, another obstacle the board faced was the condo’s offering plan, which requires owners to have gas service for appliances. The board agreed that changing this “would have been wildly divisive and difficult,” Booth says. Instead, they accepted that if someone who opted for the induction stove sold their apartment and a new owner wanted to return to a gas appliance, the condo would restore the gas. “Just because you decided to forgo the branch line today in favor of electric doesn’t mean you should be penalized for changing your mind later,” Booth says.

An assessment was put in place to fund the gas repair work and refill the condo’s reserves. Individual apartment owners paid separately for their induction stoves, adding around $6,000 to their costs. “Copper worked with us on a group order and gave us a little discount,” Booth says. Not only did those who made the switch to induction get functioning stoves three or four months before the gas was back on, Booth says he’s loving the new appliance. “The oven can hold temperature very precisely,” he says. “And it is so beautifully simple and focused on cooking.”

By Kelly G. Richardson, Esq. CCAL, HOA Homefont Column

The legislative session ended August 31, and a number of HOA bills are on the Governor’s desk awaiting approval. Assembly Bill 2692, one of the more interesting bills, was signed on August 24 as an urgency measure and so is effective immediately.

Many older California HOAs were established with CC&Rs containing expiration dates. In such associations, the CC&Rs expired on a date often at least 40 years after the HOA was created, unless the membership voted to extend the document. Many HOA communities have had their CC&Rs expire because the HOA failed to act to extend the document.

After a common interest development’s (aka “HOA”) CC&Rs expire, the HOA falls outside the Davis-Stirling Common Interest Development Act, because one of the basic requirements for the Act to apply is that the association must have a recorded declaration. So after the CC&Rs expire, such associations are without a recorded declaration in force and are not governed by the Act.

Many California HOAs have expired CC&Rs and so fall outside of the Act. Once that happens, it takes the entire membership to unanimously agree to re-impose the declaration on the properties. This is nearly impossible for all but the smallest associations, leaving such HOAs one other option – a petition to the Superior Court for some kind of assistance (“declaratory relief”).

This has now changed, at least for Los Angeles County HOAs, with Assembly Bill 2692. The bill was designed to help HOAs devastated by the 2025 Eaton and Palisades fire disasters. It created a temporary statute, Civil Code 4276, which until January 1, 2028 allows LA County HOAs with expired CC&Rs to hold a membership vote to reinstate the document.

Per subpart (b) of this new temporary statute, the vote must be conducted in compliance with the Act and with the HOA’s governing documents. The vote must be of either the votes required by the expired CC&Rs, or a majority of all members if the CC&Rs do not state a percentage of approval. Once the declaration has been revived, the document can be extended by either the initial term of the CC&Rs or 20 years, whichever is less. This means that the HOA still must at some point seek membership approval of an amendment which removes the CC&Rs expiration date or converts it to automatic renewal.

While this bill was intended for HOAs devastated by the 2025 fires, it is NOT limited to only HOAs in the Pacific Palisades or Altadena communities. ANY Los Angeles County HOA with expired CC&Rs can use this statute to revive its CC&Rs and again fall under the Act’s guidance.

It is critical to note that the time window to do this is limited and ends on December 31, 2027. HOAs have just over one year to accomplish this, and it takes time to complete the membership voting process. So, LA County associations with expired CC&Rs have a temporary opportunity to rejoin the Davis-Stirling Common Interest Development Act if they act promptly and should consult their HOA’s attorney for guidance ASAP.

While a great help to LA County HOAs, unfortunately this statute doesn’t help other California HOAs. Wouldn’t this be a great topic to raise with your legislator for NEXT year? Why shouldn’t ALL California HOAs receive this assistance?

By Jon Acoff for Next Big Ideas

Below, Jon Acuff shares five key insights from his new book, Procrastination Proof: Never Get Stuck Again.

Jon is a New York Times bestselling author of 12 books. He was named one of INC’s Top 100 Leadership Speakers, and has delivered keynotes to companies such as Microsoft, Walmart, and Comedy Central. On his podcast, All It Takes Is a Goal, Jon inspires hundreds of thousands of people to finish what matters most.

What’s the big idea?

Most people fail to reach their full potential not because they lack ability, but because procrastination, fear, and the search for permission prevent them from turning their intentions into consistent action.

1. No one is doing “the best they can.”

You see this expressed online sometimes. They post that, “Oh, everyone is doing the best they can.” And I always think, No, they’re not. They’re doing the best they think they can. No one is ever doing exactly what they can really do. I know this is true because I commissioned a research study with a PhD named Mike Peasley. He’s a professor here in Nashville, Tennessee.

We have two types of people in Nashville, Tennessee. Our population is 90 percent musicians and 10 percent bachelorette parties. Peasley and I asked 3,000 people if they feel like they are living up to their full potential. 96 percent of them said no. Everyone you know knows that they are capable of doing something more, but they don’t know what to do with that awareness.

The second statistic we collected was that 50 percent of people feel like 50 percent of their potential is untapped. That means half of us are walking around with half-lived lives. That would be like only opening half of your Christmas presents every morning. You come downstairs, and there’s a big pile in the room, but for some reason, you pull back and don’t open them all.

Why does this happen? One big reason is procrastination. We are waiting. We are delaying. We are someday-ing things that we should do today. Procrastination is the gap between your actions and your intentions. It’s the gap between who you are and who you say you want to be.

I saw a statistic in the New York Times that said 82 percent of Americans want to write a book. It’s one of our most popular goals. Do you know how many do, based on how many books are released every year? About one percent. 82 percent say they want to, but only one percent do and that’s because of procrastination. My hope for you is to close that gap. A remarkable life happens when your actions match your intentions—when the two overlap so much that the Venn diagram of your actions and intentions looks like an eclipse.

2. Discipline isn’t enough.

I’ve never met somebody who changed their life just because of discipline. I’ve helped more than a million people with their goals, and I’ve never met somebody who said, “Yeah, today, I just decided to have grit. Today I decided to have willpower. Today I woke up and decided to sacrifice.” That’s never how life changes work. People don’t willingly leave their comfort zones.

The reason people change is usually twofold: It’s either due to a desire or a disappointment. People need something that makes being uncomfortable worth it. Desire creates discipline. When you bump into a dream you want, then you’re willing to do the work.

That’s what happened to me. In my mid-30s, I started a blog and discovered this whole world that I could write to and interact with. Suddenly, I had a desire. I started getting up early in the morning because that was the only time I could write my blog. I had two kids under the age of four, and I couldn’t write at any other time of the day. I had a full-time job. I stopped watching so much TV because TV was giving me nothing, and blogging was giving me everything. I found this desire to write, and it felt like a small fire, and every hour of my day felt like a log I could throw into that flame. I wanted it to get bigger. I didn’t want to procrastinate any longer. I was in my mid-30s, and I felt behind, so I wanted to catch up. That desire to write more created the discipline I needed, not the other way around.

The one caveat I’d add is that I talked to Shawn Johnson, the Olympic gold medalist, and she pointed out that it starts with desire, but eventually the discipline will keep you going even if your desire wanes. There will be moments when motivation dissipates, and on those days, your discipline will fill in. You’ll be glad you have a habit that keeps you going.

3. Making it through the montage.

Nobody likes the montage when they’re in it. What do I mean by a montage? Well, we’ve all seen those moments in movies, haven’t we? When we see the hero make tremendous progress—be that training, falling in love, building something—but the filmmakers use a montage to speed through that timeframe.

My favorite montage is in Rocky IV, when Rocky fights Drago, the gigantic Russian. There’s this massive montage where Rocky is in Siberia, running through knee-deep snow with a log on his back. He’s training, and at the end of the montage, he screams at the top of a mountain. They show Drago, the enemy, training in a lab and taking steroids. This montage covers a lot of time in the story, but the scene we get to watch is only eight minutes and 42 seconds. When a real fighter goes to training camp, it lasts eight to 12 weeks. The movie compressed eight to 12 weeks of training into under nine minutes.

Most of life is the middle part of the montage. But we only see the quick version. We only see the after-the-montage on Instagram. We definitely don’t see the before or the middle. I encourage everyone to make it through the montage. Whenever I’m in the middle of writing a book, I remind myself that this is the montage moment. I wish I could fast-forward through the years it takes me to complete a book, from start to finish, and run the dozens of events I’ll host to speak about the book. It’s a long process. Anytime I get discouraged, I remind myself that this is the montage.

If you’re a parent, you’ll have some montage scenes. You’re going to go through adolescence with your kid. If you’re married, you’re going to have some montage scenes where you’re working on things like discovering how to talk about finances with each other, or discovering how to dream together. If you’re a business leader, there are going to be montage seasons where the supply chain gets out of whack and you have no control over that. Most of life is the montage, and the key is learning how to thrive in the montage.

4. Hook up your future self.

My favorite definition of discipline is to make tomorrow easy today. That’s all discipline is: What can I do today that makes tomorrow a little bit easier?

I first learned that lesson when I got Morning Me and Night Me on the same page. Morning Me would wake up be excited about getting going. He wanted to jump into the day. He wanted to accomplish a lot, but he’d wake up tired and feeling kind of behind from the get-go because he’d wake up without a plan. He’d wake up a little overwhelmed and he’d ask Night Me, “Hey, what did we do last night?” And Night Me would say, “Oh, I stayed up till midnight on Instagram and I ate lasagna at 1:00 AM.” Morning Me was then convinced that Night Me screwed me over.

“What can I do today that makes tomorrow a little bit easier?”

It’s important to keep in mind that the person who has to do it later is still me. There is no magical person later. It’s still me. What could Night Me do to help Morning Me? Because Morning Me is a fantastic doer. Morning me will run through a wall if you point out the right wall first, but if I wake up on a Monday morning without a plan, I struggle. If it’s 8 am and I don’t know what I’m doing that day or that week and the phone’s already ringing and emails are already coming in and clients are already calling me—it’s overwhelming.

Night Me, on the other hand, is a fantastic planner. At 7pm, no one is bothering him. He can come up with a plan for Monday so that Morning Me can wake up and run through the wall. So, I started thinking, what can Night Me do to hook up Morning Me? What can Monday Me do to hook up Friday Me? What can 50-Year-Old Me do to hook up 70-Year-Old Me? That’s all discipline is. Make tomorrow easy today.

5. Procrastination can be solved by one word.

A one-word solution exists to procrastination. It’s probably not a word you’ve thought about in a long time, but when you were a kid, this word mattered a lot. The word is permission. Permission is what everybody is waiting for. They’re waiting for permission to do the thing they know they’re capable of.

When you were a kid, permission slips mattered most. That piece of paper meant you could go on the field trip, join the soccer team, or get past that attendance ogre that every elementary school had in the 1980s. A permission slip was everything. And when you study great stories, you notice there’s an element of permission in every single one.

Think about The Lord of the Rings. Gandalf gave Frodo permission. Gandolph said, “You have permission to be more than a hobbit. You have permission to save the whole Shire. You have permission to go on an adventure.” Think about The Matrix. Morpheus gave Neo permission when he held out the two pills. Fairy Godmother gave Cinderella permission to be more than a servant. Everybody is waiting for permission.

There are four permissions that will help you succeed:

• To dream. What do I want to do? What’s my vision? What’s my hope?
• To plan. How will I do it? What will it take? What sort of resources and time?
• To do. Are you doing it? Have you rolled up your sleeves? Are you engaged?
• To review. Did it work? Am I headed in the direction I want to go?

If you want to accomplish anything, you need to give yourself those permissions. Most people give themselves some of those permissions, but get stuck on one of them. Four different types of people get stuck:

• Dreamers get stuck dreaming.
• Perfectionists get stuck planning.
• Hustlers get stuck doing.
• Analysts get stuck reviewing.

If you can get past those four blockades, then you can do anything you want. You can truly become procrastination proof.

By Kelly G. Richardson, Esq., CCAL, HOA Homefront Column

The office of HOA president is important, but sometimes misunderstood. In most associations, presidents are selected by board vote (in an open meeting). Here are some ideas as to what to look for in the HOA’s next president. 

First, know what is not required – a legal, accounting, or executive background. The highest educated or most successful person may not be the best president, since the president is not expected to be an expert in HOA law or accounting – the HOA has experts for that. A successful CEO of a for-profit company could be a terrible president if they are unable to adopt different leadership styles of the nonprofit corporation. 

Look for these qualities in a prospective president:

BACKGROUND

Experience. A track record of prior service to nonprofit organizations, including prior HOAs, may show an understanding of the different style of nonprofit leadership.

Past commitment. Has the nominee successfully headed committees, or served on the board for a few years?

Review. Have they read the governing documents and the Open Meeting Act?

Understands. Do they understand the Business Judgment Rule?

INTERPERSONAL SKILLS

Working with others. Is the nominee a team player or someone who “goes it alone”? HOAs are governed by boards, not presidents, and successful presidents must be able to cooperate with board colleagues.

Handling disagreement and divergent opinions. Is the nominee able to accept other opinions and even gracefully accept a vote of the board which goes against their views?

Gets along with people. Is the nominee a positive person and an encourager?

Consensus builder. Can the nominee work to build a consensus on the board regarding major issues? 

ATTITUDE

“Boss” or servant leader? Does the nominee have the attitude of a for-profit corporation in which the president is normally the decision-maker, or that of the nonprofit corporations in which the board is the association’s decision-maker?

Doesn’t need recognition. The best presidents view HOA leadership as service to their neighbors, not an achievement to be defended. Pick someone who is secure in themselves and not threatened by criticism or disagreement.

THE ROLE

Do-it-yourself? A president’s role is not to do all the HOA’s work for 40 hours a week – managers, service providers, and employees perform that work.

Know it all? The nominee should not think they know everything. Good presidents recognize that other directors, residents, and service providers may also have important knowledge and information benefitting the HOA, which knowledge and information the president may not have on a particular subject.

HANDLING MEETINGS

Listener or speaker? Is the nominee a good listener, or are they always the person talking? A president should encourage all directors to contribute to the meeting.

Parliamentary procedure. President normally chair meetings, and as such should have at least an elementary understanding of parliamentary procedure to help keep meetings orderly.

Balance. They must handle the balance well, encouraging directors to speak while also moving the agenda along.

AGENDA

No preconceived agenda. Avoid nominees who come to the board with “campaign promises.” The president should be committed to the HOA’s best interests, not their own agenda.

No single person will completely fulfill all these criteria – but in choosing the president, try to get as close as possible. If you the reader are currently your HOA’s president, consider aspiring to these qualities!