• Publish a resident handbook—The Village Cooperative Homes, Inc. in Ann Arbor, Michigan publishes a resident handbook. The handbook includes the following: a new co-owner information sheet, emergency key information sheet, a proxy, the association’s key policy, a welcome letter from the board president, a letter from the association’s managing agent, helpful area telephone numbers, board member information, and residency rules.

• Develop a community discount card—The Village Cooperative Homes, Inc. also negotiates discount with local merchants—a dry cleaner, bakery, and bookstore— for its residents who use the Village Cooperative Discount Card.

• Send postcard updates—Community associations frequently use newsletters, flyers and signs to promote community events. Some associations also use postcards as a reminder of upcoming events or to collect feedback. Postcards are both effective and relatively inexpensive as they can be printed for less than photocopying flyers and require less postage to mail. The board of the Woodwinds Council of Co-owners wanted their neighbors’ input on a proposed landscaping project. So, the directors of the Reston, Virginia association enclosed a self-addressed, stamped postcard in the newsletter. Nearly 15 percent of the 144-unit garden condominium and townhome community responded. The feedback was so valuable that the association now distributes the postcards up to three times a year.

• Hold one-on-one meetings with residents—A couple years age, the Society Hill Towers in Philadelphia, Pennsylvania, noticed a need for improved communication between board members, management and residents of the three-building, 690-unit condominium community. Although the board held open meetings, the setting provided an uncomfortable atmosphere for residents to express their views. In response, the board members made themselves available for regular one-on-one chats with residents.

More specifically, four times a year, board members designate an evening to meet with residents, who are assured that at least two to three members of the seven-person board will attend. The meetings are publicized for weeks in advance through as many means as possible. The community’s response to the program has been extremely positive.

Board members and residents alike agree that the meetings are a valuable source of information and contribute to the quality of the community.

• Utilize group calling services—Keeping in touch isn’t always easy for a board of directors. So when the local phone company offered residential voice mail—which includes group calling services—the board of the Seneca Park Homeowners Association in Gaithersburg, Maryland decided to try it. The service allows each director to call a voice mail system and leave a message, which is then sent to every member of the board. When a board member has left a message, the other directors hear several beeps when they pick up their phone receivers. Consequently, the board can keep each other informed with only one call. Group calling turned out to be more than a great time saver. The board members agree that the service drastically increased the efficiency of board communications. It saved them from calling special meetings, helped them make faster decisions and allowed then to respond more quickly to resident inquiries. The expense—25 cents per person per call—was minimal. Community associations should contact their local phone company to see if it offers similar services.

• Send thank you notes—Homeowners get bombarded with lots of mail regarding the association—special notices, payment books and meeting agendas—sometimes it seems like they’re being bombarded with requests and demands. One Maryland manager suggests adding something else to that list—thank you notes. It’s a simple way for board members to let homeowners know that their contributions are appreciated. Whether it’s for assisting with an official program or just doing a neighborly favor, a thank you note might make the difference between a resident resenting the board and becoming a consistent volunteer.

• Utilize your newsletter—Newsletters are a great way to inform residents about community activities, keep them abreast of financial and other managerial decisions, and increase revenue for your association by selling ads to local merchants. It’s also a way to show residents how their fees and assessments are being used. Wailea Community Association in Maui, Hawaii put an interesting spin on one of the editions of their newsletter—they did a photo spread of the maintenance and community improvements occurring in the community. This gives owners an opportunity to see how association funds are being used. And, it’s great for owners that just skim the articles—you can’t miss the pictures!

• Use friendly terminology—Would you rather live in a complex or a property? A unit or a home? A Virginia manager suggests that community association boards consider changing their terminology to make residents feel more at home. Here are some other suggestions—use words like pool and tennis court rather than saying amenities; say resident rather than tenant or occupant; or call a work order a service request. But, before making any of these changes, be sure to check with your association’s governing documents, local laws and state statutes to determine if they require you to use specific terminology.

• Add youth members—By formal resolution, the Radisson Community Association added youth members to each of its standing committees as a way to involve and empower youth. The person assigned to the board of directors would be a senior member of the youth groups and would not have a vote, but would shadow the board. All others were assigned competitively, as we do with other volunteers, and were voting members of the committee to which they were assigned. This could have been a technical problem since association membership begins at 18 and most of these youth were 15 and up. The board position attracted some attention but no one stuck with it and the position never became institutionalized. The youth regularly attended four of the six standing committees, but have only made an impact and stayed with the Recreation Committee. Those youth that participated and then went off to do other things stated that they had a much greater appreciation for community governance and shared the “we care” message with other youth in the community. The board will recruit new youth members every two years, as the children grow up and out of the community.

Ways to handle conflict resolution

Community associations face an interesting challenge: they function very much like a government, including having the authority to enact and enforce “laws.” Yet some residents do not recognize this jurisdiction and simply feel no obligation to abide by the rules set down in the community’s governing documents, particularly the covenants, conditions, and restrictions (CC&Rs). Inevitably, conflict arises.

Resolving conflicts between residents and the association is a difficult and delicate task for boards of directors. Boards have an obligation to enforce the CC&Rs because that’s how they maintain the appearance and value of the community and ensure a high standard of livability for all residents. On the other hand, residents are neighbors and friends, and they are entitled to reasonable treatment.

CAI recommends the following progression of steps to resolve conflict successfully when it does occur:

• Start with a casual conversation. Perhaps the resident is simply unaware of a particular rule or is in the process of correcting it already. Get some information, gauge the resident’s attitude, and offer to help.

• Send a friendly letter reminding the resident of the conversation. The letter should state the rule that has been violated, and it might explain why it’s important for all residents to observe the rules. Be positive, and again offer to help.

• Send a second letter. Be business-like and firm, and cite the specific section of the CC&Rs that has been violated. Give the resident a date when the problem must be corrected, and grant a reasonable amount of time. Explain what will happen if the problem isn’t resolved by the specified date. For example, the letter may state that the association will suspend privileges or impose financial penalties.

• Send official notification that the association is about to take action. Schedule a hearing when the resident may address the association. Be willing to negotiate a date and time that allows the resident to attend.

• Conduct a fair hearing and treat the resident with respect. Avoid a confrontational situation. Allow the resident to bring witnesses or counsel to the hearing, and let them know when they can expect a decision. The panel hearing the case may comprise members of the board or rules committee, the managing agent, or some combination of these. In some serious cases, association counsel may be invited to observe.

• After the hearing the board will decide how to proceed. There are numerous options, and the board should be willing to compromise on a solution that achieves the desired result. For example, the board may grant an extension of time to comply with the rule, suggest an alternative solution, suspend privileges, impose monetary penalties, or some combination of these.

• Allow the resident to appeal the decision. Be sure the body hearing the appeal is different than those who participated in the hearing or decided its outcome. For example, a panel of past board members might comprise an appeals committee—these individuals have a history in the community and knowledge of the governing documents, but they’re removed from current governance and operations.

• Pursue alternative disputed resolution (ADR) options if the association and the resident cannot resolve their differences.

ADR is less costly and more productive than litigation. It is comprised of three phases: negotiation, mediation, and arbitration. In negotiation, the parties identify the issues, educate one another about their needs and interests, propose settlement options, and bargain over the final resolution. In mediation, a neutral mediator facilitates the negotiation between the association and resident to help them agree on a solution that is acceptable to each of them. In arbitration, a neutral arbitrator hears both sides of the case and renders a decision based on evidence and testimony. An arbitrator’s decision is as legal and binding as a court decision; however, the process is much less formal and far less expensive.

In addition, there are several actions the association can take to minimize rules violations, reduce conflict between residents and the community and to build consensus. For instance, the community association can:

• Educate residents about the rules—what they are, why they are important, why compliance maintains property values, and so on. Use every vehicle and opportunity to remind residents of the rules.

• Intervene as early as possible; don’t allow the violation to continue or to become serious.

• Modify association governing documents or pass a resolution confirming the association’s commitment to alternative dispute resolution.

• Establish a policy that outlines how the association will resolve conflicts. This policy may suggest timelines, hearing procedures, hearing panel composition, and support the association’s commitment to alternative dispute resolution. Adhere to the policy and apply it in all situations.

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