HOAs having trouble finding board members is more common than you might think

Reader comment: Like one of your readers, I also live in an homeowners association (HOA) community (44 units) where no one wants to step up to be on the board. We have three people there now and two are past their two-year commitment, nor do we have a management firm. Frankly, I think we do a fantastic job of addressing residents’ needs and hiring contractors as needed and our reserves are fairly healthy. I personally sit on five committees helping to run the HOA, but I’m not willing to take a board position because I know that no one will relieve me once my term is up.

While your article discussed the assumed responsibilities of living in a townhouse/condo community, it does not really answer the question about how to get residents to join the board. Perhaps there just isn’t an answer. Last ones on the board are stuck. Yes, we’ve tried recruiting as well and that is how we found the current president of the board.

It sure feels like there’s a business opportunity present, as I’ll wager that there are hundreds upon hundreds of HOAs in the same predicament.

Ilyce and Sam respond: Thanks for your email. It’s certainly frustrating to feel stuck in a no-win, endless position where the only option is to sell your unit. But you’re right. There are others in your exact situation.

Here are more letters we received in response to our HOA columns.

Q: I read your article about small HOAs not able to maintain enough people to fill positions on their boards. In San Diego, in my community, there are five HOAs here in my community. I am one of almost 400 owners. I have asked numerous management companies and a few real estate agents about managing our group. There are zero companies here in San Diego that are interested; they don’t want to bother. So, we manage to move along the best we can. I wish there was a solution.

A: Thanks for sending in your email. We also wish there was another solution. We’re just surprised that out of nearly 400 homeowners, none want to step up and help manage an HOA. Likewise, we’re surprised there are no management companies willing to take on this role.

Have you asked them why this is? Is it that they can’t generate enough revenue to make it worthwhile? Or, are they having trouble finding people who can manage the properties?

It seems that in a place like San Diego, which is filled with retirees, there would be a handful who want a part-time job and would be glad to have the income. In Chicago, there is at least one condo owner who wouldn’t mind getting paid for taking on the work.

Q: Hello. I’m sure this is not an unusual situation. I live in a four-unit condo in Chicago. In addition to being the association treasurer, I also oversee all aspects of maintaining our 100-year-old building, such as general maintenance through more complicated projects.

This is by default due to the other three unit owners being disinterested in maintaining the building. I have spoken to them about stepping up, but my words fall on deaf ears.

If the work was equitably distributed, I wouldn’t mind doing a little more than 25%, but doing 90% is becoming untenable. I believe I should be compensated for the time I put in. Is this allowable under Illinois Condo laws? And, if there is no mention of this in our by-laws, is it legal?

A: You should call a meeting of the owners and discuss the situation. There’s no reason why you can’t be compensated for managing the entire building if no one else wants to help, but the association would have to hire you as a manager of the association. You can’t get paid for your volunteer position on the board.

The way to do this would be to solicit costs from management companies to discuss what would be covered if they took over running the property and how much they would charge. You can get a couple of different estimates and then present this to your neighbors. They can pay you or pay a company. Just remember, you’ll need an agreement in writing from the HOA. This will cover the duties associated with managing the association or any duties you’ll handle on behalf of the association.

As your neighbors sell and new people move into the building, things can change. With any luck, those new owners may want to participate in the management and operation of the building. Or, they’ll be willing to step up as long as they don’t have to pay the extra money for doing things that the homeowners should or could be doing.

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(Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask” (4th Edition). She is also the CEO of Best Money Moves, a financial wellness technology company. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, ThinkGlink.com.)