When a condominium or homeowner’s association replaces their Board of Director members with new members after a proper election, there are times when these new BOD members come in with the intention of changing everything that the old regime established. It can be little things like changing meeting times, up to issues like changing the property manager or amending the current documents of the Association. While many times, these changes seem like the right thing to do because the prior BOD members made what seems like mistakes or they did not due things properly, certain changes can have a negative effect in the long run and possibly even handcuff an Association from doing things properly.
Changing things like service providers (including landscapers, accountants, property managers and attorneys) might be a wise decision, but make sure before the final decision is made to find out if such providers were only doing just what the prior BOD was requiring of them. Turnover is always going to have some costs involved, so it is important to completely analyze the decisions to change the current way things are being done by the Association.
When addressing things like amending the current documents of the Association, make sure to evaluate all aspects of the change, to determine what the effects of such a change would have, even on future BODs. Amending the documents to include something like restriction on investments of the Association’s money might seem like a reasonable thing to do at the time, but in 10 years from now, would those restrictions hinder the Association from dealing with the current economic climate, and would the votes be there to change it if it needs to be changed?
In many situations, change is indeed needed, but it is the BOD’s member’s fiduciary duty to make sure that they make the best decisions for the Association, and a total analysis of all the effects of a change should be done prior to making those changes.