Why do smart, well-meaning directors, serving on HOA and Condo boards, sometimes make bad decisions?
In 2007, one of the largest, high-end retirement communities in southern Arizona had an election. A well-heeled resident who regularly boasted about his status as a “previously very important person” with a Fortune 100 Company ran for the Board on the platform that the community was going to hell. He was successful in convincing his neighbors that the association was wasting money, and that the reason was incompetent management. For the previous seven years, this community had enjoyed unparalleled prosperity. They had transitioned from developer control, passed sweeping and necessary amendments to their governing documents and completed a $3.5 million renovation of their clubhouse and restaurant facility. Their bank account was flush and they had run operating surpluses for the last five fiscal years. Not bad for a $6 million dollar a year budget.
You must login to view the full content on this page.
Or, use your linked account: