August 2024 CT

MANAGEMENT TRENDS

Navigating HOA Management: Addressing Disagreements Between Management Companies and Associations By Toine Hutchinson, CMCA M anaging a Homeowners Association (HOA) requires a delicate balance of effective communi cation, strategic decision-making, and collabora

tive efforts between the association board and the manage ment company. However, disagreements can arise, leading to contract terminations, especially when divergent opinions persist. Let’s explore two scenarios where contract termina tions occur due to poor management and inadequate board experience, respectively, and how to address them. Scenario 1: Management Challenges In this scenario, issues may arise due to the management company’s inability to meet the association’s needs ade quately. Issues such as lack of responsiveness, mismanage ment of funds, or failure to adhere to contractual obligations can strain the relationship. RESOLUTION STEPS: 1. Assess the Contract: Review the terms of the contract between the association and the management compa ny to understand each party’s rights and obligations. Identify specific areas where the management company has failed to deliver. 2. Open Dialogue: Schedule a meeting with represen tatives from both the association board and the man agement company to discuss concerns openly. Focus on finding solutions rather than placing blame. Clearly communicate expectations moving forward. 3. Seek Mediation: If initial discussions do not yield a resolution, consider engaging a mediator experienced in HOA disputes. Mediation provides a neutral envi ronment for both parties to express their concerns and work towards a mutually beneficial agreement. 4. Explore Alternatives: If efforts to reconcile differences prove unsuccessful, the association may need to explore

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alternative management options. Request proposals from reputable management companies, ensuring they have a track record of success and align with the association’s values and goals. 5. Transition Plan: Develop a comprehensive transition plan to smoothly transfer responsibilities from the current management company to the new one. Ensure all neces sary documentation, financial records, and operational details are transferred securely. 6. Learning and Applying Best Methods: Before imple menting the changes, the board should evaluate what they have learned from the experience and note what they will do differently. Have solid examples to discuss and have implemented with new management compa ny. Regularly evaluate their effectiveness in addressing the association’s needs and collaborate, adjust strate gies as needed. Scenario 2: Inexperienced Board In this scenario, issues may arise due to inadequate expe rience or ineffective leadership within the association board. CONTINUES ON PAGE 52

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AUGUST 2024