From Volunteer to Visionary: Building Effective HOA Leadership

Presented by Robert Nordlund, PE, RS – Association Reserves
Guest Speaker: Julie Adamen – Adamen, Inc.

Introduction

Robert Nordlund:

Thank you, Jenn, and welcome everyone to today’s program.

I got my start in the community association industry as a volunteer board member. I attended my first board meeting, the entire board resigned, and they asked me if I could take over. A lack of money in the reserve fund led me to investigate reserves, and ultimately to create Association Reserves.

Today’s webinar is a little different from many of our reserve-focused programs. We recognize that unless board members understand the dynamics and responsibilities of serving on a board, reserves become just another detail they’ll never have time to address.

Board members need to move from being volunteers to becoming visionaries.

That’s why we’re joined today by Julie Adamen of Adamen, Inc. This is the type of content we share each week on our podcast, HOA Insights: Common Sense for Common Areas, where we provide practical guidance to inform, encourage, and equip board members for the important work they do leading their communities.

Becoming a Board Member Changes Everything

When you buy a home in a community association and run for a board seat, everything changes.

You are no longer just a homeowner. You now have corporate responsibilities.

As a board member, you’re helping lead a multi-million-dollar nonprofit real estate corporation. Homeowners are primarily concerned with whether things work, whether the community is clean, and whether assessments remain affordable.

Board members, however, must:

• Follow the law

• Follow governing documents

• Create and enforce policies

• Hire and supervise vendors

• Set and monitor budgets

• Pay bills

• Conduct meetings

• Update and enforce rules

• Maintain the property

• Plan for the future

The list goes on and on.

Being a board member is a significant responsibility. The challenge is moving from feeling overwhelmed to becoming a confident leader.

To help us understand the “rules of the game,” I’d like to welcome Julie Adamen.

Understanding the Rules of the Game

Julie Adamen:

Thanks, Robert, and thanks to everyone for joining us.

I’ve spent nearly 40 years in this industry. I’ve been a manager, a board member, a consultant, and a vendor serving community associations. I’ve seen this business from every angle.

One thing I can tell you is that most people who join a board have no idea what they’ve signed up for.

They usually want to do the right thing and contribute positively to their community. Some join because they have a specific agenda, such as lowering assessments or changing vendors, but quickly discover that board service is much more complex than they expected.

Know the Governing Framework

The first thing every new board member should understand is the framework that governs their association:

1. State Law

Become familiar with the laws governing community associations in your state.

Many law firms provide free guides or summaries specifically designed for board members and managers.

2. Governing Documents

Learn your:

• CC&Rs (Declaration)

• Bylaws

• Rules and Regulations

• Architectural Guidelines

You don’t need to memorize them, but you should understand how they guide association operations.

3. Policies and Procedures

Policies evolve over time and should be reviewed regularly. Understanding current policies helps establish a strong foundation for board decision-making.

Leadership Is More Than Wishful Thinking

Associations are businesses.

As a board member, you’re a fiduciary. That means you’re responsible for managing both physical and financial assets on behalf of others.

Homeowners expect you to:

• Protect property values

• Maintain the community

• Represent the association professionally

• Make decisions that benefit the entire community

Your responsibility isn’t to represent only yourself or a small group of vocal owners. Your responsibility is to act in the best interests of the entire association.

Work as a Team

Robert Nordlund:

One of the most important lessons for new board members is learning to work as a team.

Board members bring diverse:

• Backgrounds

• Experiences

• Perspectives

• Ages

• Professions

• Financial viewpoints

That diversity is valuable.

You may want to change pool hours, landscaping standards, or reserve funding priorities, but effective governance requires listening to others and working collaboratively.

Julie Adamen:

Serving on a board is a team sport.

You don’t have to agree on everything. However, once a decision is made by the board, the board must move forward together.

If a five-member board votes 3-2 on an issue, the two dissenting members shouldn’t leave the meeting and complain to homeowners.

Instead, they should say:

“I disagreed with the decision, but the board has made its choice, and I will help make it successful.”

That’s what teamwork looks like.

Create a Shared Vision

Boards function best when they share a common purpose.

Robert Nordlund:

A mission, vision, and values statement can help unify a board.

Ask yourselves:

• Who are we?

• What are we trying to accomplish?

• What kind of community are we building?

Julie Adamen:

Your responsibility extends beyond today’s residents.

You must think about future owners as well.

Will future residents inherit:

• Adequately funded reserves?

• Well-maintained amenities?

• Strong property values?

The decisions you make today shape the community years into the future.

Every Decision Matters

Robert Nordlund:

There’s a saying:

“When you’re a baby, you look like your parents. When you’re an adult, you look like your decisions.”

Associations are no different.

Every decision contributes to the future condition of the community.

Deferred maintenance today becomes expensive repairs tomorrow. Underfunded reserves today become special assessments later.

Board members must think long-term.

Confidentiality Matters

Board members must understand the difference between transparency and confidentiality.

Executive session discussions often involve:

• Personnel matters

• Legal issues

• Contracts

• Litigation

These discussions must remain confidential.

Julie Adamen:

Remember:

Everything you say as a board member can become public.

Even casual comments can quickly become rumors and misunderstandings.

Be thoughtful and deliberate in your communications.

The Importance of Soft Skills

Technical knowledge is important, but soft skills often determine a board’s effectiveness.

Board members must be able to:

• Listen actively

• Manage emotions

• Resolve conflicts

• Work with difficult personalities

• Read the room

• Maintain professionalism

Julie Adamen:

You may find yourself working alongside people you disagree with politically, professionally, or personally.

Your responsibility is to work through those differences and continue moving the association forward.

Appreciating Different Perspectives

Robert Nordlund:

Strong boards benefit from diversity.

Some members are risk-takers.

Others are cautious.

Some focus on finances.

Others focus on operations.

Just like a football team needs different positions and skill sets, a board needs different perspectives.

The key is focusing those diverse viewpoints toward a common goal.

Understanding the Business Judgment Rule

One of the most important legal protections available to board members is the Business Judgment Rule.

Board members are generally protected when they demonstrate:

Duty of Care

Acting in the association’s best interests.

Duty of Loyalty

Putting association interests ahead of personal interests.

Duty of Inquiry

Asking questions and seeking expert advice before making decisions.

Board members are not expected to be perfect.

They are expected to act reasonably, gather information, and make informed decisions.

Common Mistakes to Avoid

Secrecy

Lack of communication creates distrust and encourages rumors.

Bullying

Treat fellow board members, homeowners, and professionals with respect.

Self-Interest

Avoid pursuing personal agendas at the expense of the community.

Inconsistency

Apply rules and standards fairly and uniformly.

Lack of Self-Control

Everything you say and do reflects on the association.

Maintain professionalism at all times.

Communication Is Critical

Julie Adamen:

If there is a communication vacuum, it will be filled by rumors.

Always communicate:

• Clearly

• Consistently

• Frequently

Too much communication is almost always better than too little.

Transparency builds trust.

Practical Tips for Successful Board Service

Be Prepared

Review board packets and materials before meetings.

Guard Your Tongue and Attitude

Avoid emotional reactions.

Think before speaking.

Communicate Effectively

Keep homeowners informed.

Make Like a Duck

Robert Nordlund:

In my family, we taught our children:

“Make like a duck and let the water roll off your back.”

Criticism comes with leadership. Don’t take everything personally.

Prioritize the Association

Always place the needs of the community above personal interests.

Follow Through

If you promise action, complete it.

If you conduct a survey, share the results.

If you make a decision, explain the reasoning.

Fund the Association Properly

Avoid the temptation to keep assessments artificially low.

Failing to increase assessments when necessary creates larger problems later.

Reserve funding isn’t optional. It’s responsible financial planning.

Reserve Funding Is Future Planning

Robert Nordlund:

Many associations struggle because they don’t adequately fund reserves.

The average association typically needs to allocate roughly 25% of its budget toward reserve funding.

Whether you save gradually through reserve contributions or pay later through special assessments, the expenses will eventually arrive.

The roof doesn’t care about your budget.

The pavement doesn’t care about your budget.

Those expenses are coming.

Good boards prepare for them in advance.

Final Thoughts

Leadership is about people—not just property.

Successful board members:

• Work as a team

• Communicate clearly

• Exercise good judgment

• Demonstrate courage

• Follow through on commitments

• Stay patient during change

• Seek expert advice when needed

Improving an association doesn’t happen overnight.

If trust has been damaged or problems have accumulated, it may take years to rebuild confidence and create lasting positive change.

But with strong leadership, it can be done.

Additional Resources

Adamen, Inc.

Julie Adamen offers educational resources and board member training programs, including:

CAM 101 for Board Members

A comprehensive training course designed to help new board members understand how community associations operate and what is expected of them in their leadership role.

Visit: www.adameninc.com

Association Reserves

Association Reserves offers:

• Reserve Studies

• Educational articles and reports

• Reserve planning resources

• The book Understanding Reserves

• Online reserve planning tools

• Educational videos and webinars

Visit: www.reservestudy.com

HOA Insights Podcast

HOA Insights: Common Sense for Common Areas

Weekly 30-minute episodes featuring practical guidance, industry experts, and real-world solutions for HOA and condominium board members.

Visit: www.hoainsights.org

Transcript edited and formatted for WordPress publication from the original webinar recording.