In nearly 45 years of representing community associations of all sizes and varieties, I have come to certain conclusions and realizations in regard to how Boards function or in many cases dysfunction. Many of these thoughts are set forth in my book: Condo Living 2: The Authoritative Guide to Buying, Selling, and Operating a Condominium, but things do not seem to be getting better.
With the passage of the new 2015 Michigan Nonprofit Corporation Act Amendments, directors of community Associations or other nonprofit corporations, whether they are paid or not, are virtually immune from anything they do or not do. That makes it even more important that directors of the Association operate the business of the Association in an honest and businesslike fashion. All too often, directors of Associations allow their self-interests, i.e., (do they want to pay more assessments themselves) to dictate how they run the financial affairs of the Association. All too often directors of community Associations abdicate their role as policy makers at community Associations and throw the issue open to the members as a committee of the whole who, unlike the Board, do not have any fiduciary duty to operate in the best interests of the Association and, obviously, do not have the facts and legal principles available to them to analyze a particular problem.
All too often, directors think that their job is to spend as little money at whatever cost hiring incompetent or less competent and experienced contractors, professors, and management companies. Hopefully, things will change.