January 2024

The Benefits of BOARD MEMBER TRAINING By Michael Pesce, PCAM, Associa Community Management Corp., AAMC

I joined the association management business in 1987, and over the ensuing 36 years, I have learned a great deal from the thousands of board members I have worked for and with over that period. If one approaches operating community associations as a business, which it mostly is, the diverse backgrounds of our various board members can teach even the most veteran community man ager a lot about operating these communities. However, there are certain aspects of governing and operating community associations that are unique to our industry and are not necessarily intuitive. Many companies believe that it is critical that they educate their board members, especially those recently elected, on the unique aspects of their volunteer roles. Before touching upon the general topics that those cover in these education sessions, it is also encourage d for boards, especially newly elected members, to seek input from their legal counsel and accounting professionals on the legal and financial obliga-tions of their role on the board.

Many management companies now conduct a series of period seminars for our managed boards, dealing with top ics ranging from EV charging stations in communities, to the annual audit, to how to draft an effective board resolution. Many of these sessions are presented by outside speakers from the industry. However, core board member training programs are taught by community management mem bers. Every three months, it is suggested to have one session devoted to the effective use of a website platform, TownSq, and a second devoted, in general, to what it takes to be a good board member. I have historically led the general training sessions, which typically involve the following topics: 1.The fiduciary obligations of board members (duty of loy alty, duty of care and duty of confidentiality). Frankly, we don’t recommend spending a great deal of time on these ethical obligations, as we find that board members in general, and certainly those spending an evening looking to learn to do their jobs better, are typically serving for the right reasons. CONTINUES ON PAGE 30

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JANUARY 2024