I am often asked how much communication an Association Board of Directors is required to have with its co-owners. Most condominium documents require at least annual meetings of the Association where all co-owners are invited to attend. Further, an Association is required to provide annual financial statements to its co-owners. Beyond that, most documents don’t REQUIRE that Boards have any further communication with their co-owners.
For a Board of Directors to communicate with its co-owners only as required by the law or their condominium documents, would be a grave mistake. From my experience, most co-owners truly want to know what is happening in their Association. And, it seems to be human nature that if people believe that their Board of Directors is not being open with them they will suspect that the Board is doing something improper. Open communication significantly reduces suspicion and increases co-owner satisfaction.
But how should we communicate with our co-owners? Well written and informative newsletters are often the best vehicle. Some Associations publish Board minutes or summaries of Board meetings in their newsletter. Others may post such information in their clubhouse or other accessible location. Even if most co-owners don’t bother reading them, the fact that they are published creates that sense of openness that co-owners appreciate. The accessibility of quality desktop publishing programs can make any newsletter look professional.
Another excellent form of communication is with new co-owners. Often, those new co-owners have not received a copy of the condominium documents, and may not even understand the nature of condominium living. A new co-owner handbook or information packet, prepared from a positive standpoint rather than a “you must abide by these rules” approach, can be very effective in welcoming new co-owners to the community and educating them on how to handle the various concerns of a condominium co-owner.
Having an open invitation to co-owners to attend regular Board meetings is another method of good communication. However, for those Associations without a clubhouse or public meeting facility, this often creates problems. When a Board meets in Directors’ homes it is often difficult or even impossible to accommodate all of the interested co-owners. But, I believe that an effort should be made to give co-owners easy access to the Board.
The actual or perceived inability of co-owners to attend Board meetings has been the impetus behind a number of efforts to amend the Michigan Condominium Act to require open Board meetings and co-owner attendance. So far, those efforts have been unsuccessful, but if Boards don’t openly communicate with their co-owners, those efforts will continue to the point of success.
Although co-owners should be allowed to attend Board meetings, they should not be permitted to control the Board meeting or to interfere with the conduct of its business. Perhaps a portion of the meeting could be open to the co-owners for questions or comments. Some Boards allow co-owners to simply observe the balance of the meeting, but if the Board is dealing with sensitive or confidential issues, those should be handled in executive session. In addition to being kept apprised of what is happening in the condominium, or being allowed to attend Board meetings, co-owners also want to know that their Boards are responsive to their concerns. It is important for a Board to timely respond to co-owner concerns, not to ignore them. Small problems that get ignored often escalate into major disputes.
We recommend that Associations establish intentional and effective communication programs. A good communication program not only clearly communicates to the co-owners, but encourages and evaluates feedback from them. Good communication often reduces problems and increases the level of satisfaction and contentment of the community.