HOA Board Heroes: What 39 Years on the Board Taught One Homeowner About HOA Success

108 | HOA Board Heroes: What 39 Years on the Board Taught One Homeowner About HOA Success

SUMMARY KEYWORDS

HOA governance, board heroes, community association, property values, board member education, California laws, board member recruitment, rental properties, association maintenance, financial struggles, community involvement, board member roles, property management, homeowner engagement, association reserves.

SPEAKERS

Paige Daniels, Jan Newcomb, Robert Nordlund, Announcer

Jan Newcomb 00:00

I think there’s got to be a way to get homeowners more involved in the governance of their association. But what most people don’t understand this is an experiment in self governance. If you don’t get involved. I mean, somebody has to be there to make these decisions. If you don’t get involved, you don’t even know it’s kind of like the rest of our government. If you don’t know what these people are doing that you’ve elected. Shame on you.

Announcer 00:29

A regular highlight of the HOA Insights Podcast is our board heroes feature, where we dedicate one episode each month to celebrate the remarkable efforts of HOA board members. To us a board hero is one of the 2 million elected volunteers who deserve recognition for excelling in a role that often goes unnoticed. Today, we’re excited to spotlight one of these exceptional board heroes and share their inspiring story. If you match our definition of a board hero or know someone who does, please reach out to us. Our contact details and those of our sponsors are provided in the show notes, welcome

Robert Nordlund 01:01

Back to HOA Insights, Common Sense for Common Areas. I’m Robert Nordlund, and I’m here today for episode number 108 with special guest Jan Newcomb, another one of the board heroes, we’re proud to celebrate. I first met Jan many years ago when we served together in some Cai national leadership positions. I was on the business partners Council, and Jan was on the homeowner Leaders Council. We’re both from Southern California, so we established a natural connection. Jan has since gone on to become, or she served a term on the National Board of Trustees, so she went further along than I did, and we’re just anyway, Jan’s just the right person to have on the show. Jan has a long history of living in her Association has been on and off her board three times. She’s currently now back on her board. So for some people, you realize it’s just part of who you are. I hope you enjoyed last week’s episode number 107, with regular co host and insurance expert, Kevin Davis, discussing the high cost of insurance and what board members can do about that to minimize costs at their association. Now, if you missed that important episode or any other prior episode, you can find them on our podcast website, Hoa insights.org, on your favorite podcast platform, or on our YouTube channel, but better yet, subscribe to the podcast in order to get every episode delivered right to your phone or mobile device. And those of you watching on YouTube can see the HOA insights mug that I have here features a rundown Association and some board members talking to each other. You can get something like that from our merch store, which you can browse through from our Hoa insights.org website or the show notes, and you’ll find we have plenty of free items, like board member zoom backgrounds and some specialty items, like this mug that I have here for sale, but you can get one for free. Just go to our merch store, pick out the mug you’d like and email me at podcast, at reserve study.com mentioning episode number 108, 108, mug giveaway, and if you’re the 10th person, we’ll ship that mug to you free of charge. We enjoy hearing from you, and most episodes are in response to a topic you’ve recommended. So do stay in contact letting us know what questions you have, topics that you’d like to hear about. So leave us a voicemail at 805-203-3130, leave a comment on the YouTube video or send us an email at again podcast@reservestudy.com but back to today’s episode. Jan Newcomb has her JD degree so she understands rights and responsibilities and liability exposure. She was a certified mediator and ombudsman for McDonald Douglas. She’s a small business owner, and for the purpose of today, she’s a 39 year homeowner at her town home in Southern California, Jan’s a person who cares. She sees the future and she wants to create a better future for anyone in her sphere of influence. She’s often interviewed for Community Association publications, and that ranges from her local Cai chapter to the national Common Ground magazine. So Jan, welcome to the program. Thank you. Well, tell me what got you started in this What drew you to Community Association, home ownership and living. Well, it

Jan Newcomb 04:32

started, actually started even longer than 39 years ago. I was actually president of a previous Association in tusted. But how I got on the current board is there was, I believe it was a treasure that was on the board many, many years ago who passed away, and because I was one of the few people attending board meetings, they thought, hmm, you know, maybe you could take over. So I got a point that. Was that was the beginning of a very long journey. Yes,

Robert Nordlund 05:04

I think most board members have a story that’s one of two types. One type is, there was an emergency and I needed to help. Or, number two, it was kind of an accident. Right place at the right time, right place at the wrong time. We had one person on the program who bought the home of the former president. And he said, So, I assume you can be president now. And he said, I guess so. Why not, yeah. Why not, yeah, yeah. If you can do it, I can do it. What was your initial impression about being on the board, since you had seen the board acting the board, doing it. You were one of the few people who were interested enough to attend.

Jan Newcomb 05:46

Well, I would say, even though had been attending board meetings, I really didn’t know what I was getting into, because when I was a board member previously, I think my recollection is there have been so many more laws now that are impacting us in California in terms of how we have to operate as an HOA, it’s a lot more complicated now than it was then. What role were

Robert Nordlund 06:13

you filling there? What were you trying to accomplish? How did you feel? Did you fit well on the board?

Jan Newcomb 06:19

Well, the man that passed away was the treasurer, and that is the last job I should have. So, no, I think I just became, like a board member at large or something. I don’t remember now,

Robert Nordlund 06:31

okay, so it wasn’t your particular skill set. No, not at all. Got it. Tell me more about being a board member at your association. How long are the terms.

Jan Newcomb 06:40

They’re two years, and then you have to run for election again, and you have three people being elected in one year, and then the next year it’s two. So they don’t elect new board all at the same time, so it’s not

Robert Nordlund 06:55

an entire change of administration, right, right? I would think that that helps with continuity. At the association, we

Jan Newcomb 07:01

have a lot of continuity because it’s hard to find people to run for the board. So let’s talk about that. There’s no term limits. There’s no term limits. Okay, so

Robert Nordlund 07:10

when someone runs for the board, half of their job in the back of their mind is looking for someone to replace them. And if you can’t find someone to replace them. That means that you end up serving two or three terms, something like that. That’s pretty much what happens. Yeah. Okay, so what got you off the board the first time, the

Jan Newcomb 07:31

very first time I was on the board, I was still working full time, and I just found, you know, I was a single parent. I was working full time, and it just got to be too much to deal with. So I think that was probably the biggest reason.

Robert Nordlund 07:48

Did things change at the association in a noticeable manner, when you stepped off the board? Did the whole place fall apart? Is what I’m trying to find out.

Jan Newcomb 07:59

It might have, in a way, but I don’t think we realized that at the time. What we’re facing now is the fact that a lot of previous boards didn’t raise the dues when they should have, so they were popular with the homeowners, but we’re now faced with, you know, having to catch up, and we ended up having to get a roof loan to replace our roof. So that’s been a significant financial struggle there.

Robert Nordlund 08:25

I am just in such a lucky position, because I get to speak to subject matter experts, board member experts all up regularly on a weekly basis. And there was one conversation I had where speaking to someone who likened it to a automobile race, like a NASCAR race, where inflation is going round and round and round and round and round. And if you pull into the pits and don’t raise your assessments one year, you’re losing ground. And that’s a problem that we see so many associations falling into that they are looking more at trying to minimize their spending rather than taking good care of the place. So let me ask that, have your property values suffered, or are they doing okay?

Jan Newcomb 09:14

Well, they’re crazy. I mean, they’re compared to what I paid for the place. It’s worth a whole lot more money now.

Robert Nordlund 09:21

Is your association a strong presence in the local marketplace? Is it A, would you say a desirable place to live? Oh,

Jan Newcomb 09:29

definitely, definitely. It was built in the early 70s, when there was a lot of construction going on in Orange County. So we’re 50 years old now, and what I’m noticing is the places that are being built now. You know, they may be beautiful homes, but they don’t have a lot of land around them. They don’t have We have acres of beautiful lawns, beautiful trees, and they just don’t build places like that anymore. I think we’re very fortunate. It, but it’s also expensive to maintain. There

Robert Nordlund 10:03

you go. And we get back to assessments, and I want to touch on that, because so many think that this is a better association or a worse Association just because of how much the assessments are. And if you have a lot of grounds that can be absolutely wonderful for your eyes, to be able to see, to be able to see the landscaping, to see some elbow room, and that’s gonna landscaping takes money, and hasn’t that been one of your projects there? It’s one of

Jan Newcomb 10:34

the biggest expenses. And I remember driving into the association when I was looking to buy a home. I mean, when I saw it, it was just like, This feels like where I would like to be. It was beautiful, and it still is. Yeah, it drew

Robert Nordlund 10:48

you in. So if you were to compare a home in your association compared to a home across the street down the road, your assessments would be higher, just because you’ve got a lot more landscaping to take care of. But then again,

Jan Newcomb 11:04

there’s more involved than that, though, because what I think people, I think what people do is they compare the numbers. This association has only $250 a month, and this association has 600 Well, what they don’t know is how much those assessments cover, like we actually pay for, even though we’re a planned development, we pay for all the insurance on the homes, the structures we maintain, the painting and the asphalt and The trees and the lawns. Another association may have lower assessments, but it may not cover nearly as much amenities, or, you know, insurance, or things like that that are certainly very expensive now,

Robert Nordlund 11:54

right? Or utilities in the association where I lived and what got me started in this industry, the water bill and the power bill were rolled up into my monthly assessments. Oh, that makes a huge difference. That makes it, yeah, exactly. You could say that a neighboring associations assessments were lower, but that person had to write two more checks to the water bill and the power utility.

Jan Newcomb 12:19

So people just compare numbers. And I don’t think they have an idea of really, it’s not a apples to apples comparison.

Robert Nordlund 12:26

Well, let’s go from that. Let’s talk about what you on the board tried to create there. Did you have priorities? You when you first rolled into that association, said, Yeah, I could live here. Can I afford it? And you started to go down that path of buying a home there is that? What you’ve what in your mind, have you been trying to uphold in your time on the board at your association?

Jan Newcomb 12:50

Well, we’re trying to preserve the look of the community, obviously, and we’re also trying to get our reserves back up, you know, higher because they, they didn’t save enough over the years. You know, we’re fairly well funded, but we definitely need to continue to put money away because we’re a 50 year old community now. And so there’s more things that need to be fixed. Well,

Robert Nordlund 13:17

there’s more consequences, because you can be in a brand new association, and not put any money aside to reserves. And you go outside and it looks great, but if you’re not keeping up with a 30 or 40 or 50 unit Association, you’re going to see the consequences pretty quick, because the age is there and it does need ongoing maintenance. So that’s right, that’s an important thing. Okay, you talk about the look of the association. What about the things you can’t see? The chemistry, the peacefulness, the community aspect. How have you been able to work to make it a nice place where, when you see a neighbor, you smile

Jan Newcomb 13:55

if you see the neighbor, yeah,

Robert Nordlund 13:58

okay, good, you’re good. Nowadays, we’re in our homes more they

Jan Newcomb 14:02

could be on a computer somewhere right, right, or

Robert Nordlund 14:06

watching something on the internet, and you’re not going to and from work as much as we used to be. Let’s talk about one thing in particular. You have more grounds. Does that mean that you have people out walking? Do you have more people with dogs out walking dogs? Is that a good thing for community? Lots

Jan Newcomb 14:25

of dogs, lots of kids. We had an interesting turnover of the first time there was turnover in the community. I assumed that we would have new families with young children. Well, what happened the first time we turned over, we got a lot of older people that were downsizing from big homes, interesting. And so it started looking like a 55 and plus community now, then the next turnover. Now, we’ve got a lot of young families, young children. We definitely have a lot more rent. Hers, because the people that have lived there for a long time, or have owned the homes for a long time, and I’m a good example, we don’t want to sell because we’d have to pay capital gains taxes. So people who have moved have just turned their properties into rentals.

Robert Nordlund 15:19

Okay? So what you’ve been able to see is that the character of the association has changed a little bit from, yes, just the composition, the dynamic of who is living there. You talked about the turnover, so that went from original owners to maybe the next wave of people buying in. Talk to me more about that. Has the association become more diverse. Has the has it scrambled enough? Or does it tend to go kind of in waves? In your observation,

Jan Newcomb 15:48

like I say, the first wave was older people downsizing, second wave was young families coming back in. But we do have a lot of rentals, which I believe has changed the association, because the owners may be living in another state, and they’re not engaged with the association like they used to be

Robert Nordlund 16:13

okay. Do you does that create more of a delinquency problem, or those owners who are vested in the association, and they’re they’re good to go. No,

Jan Newcomb 16:23

I don’t know. It really hasn’t caused that kind of a problem. I think the problem it has caused is that a lot of the people that are owners who live out of state now, they’re not involved with the association like they might have been before. You know, in terms of volunteering on a committee or being on the board or things like that.

Robert Nordlund 16:41

Well, let me get back to that. To one of the first things you were talking about was getting replacements for people on the board and board member candidates. And if you have, as you see, the number of renters go up and those absentee owners moving out. Pool of board member candidates gets smaller and smaller at the same time. Like you were saying, the the laws are, there’s more laws to comply with. In California, there’s the Davis Sterling act. I think I remember the first version of the Davis Sterling Act was seven pages, and now it’s 3040,

Jan Newcomb 17:19

50. It’s a huge book. It’s

Robert Nordlund 17:20

a book. Yeah, there’s some attorneys that have books on it. And then the complexities of an older Association. How do you, how do you recruit board members? Tell me about that process at your association? Well,

Jan Newcomb 17:35

we, we try, but we don’t have a lot of luck. I mean, we’ve got a board that’s been pretty consistent now for several years. Okay,

Robert Nordlund 17:42

do you try to establish a pipeline of people who can help on a particular committee or with a project, and try to make serving on the board inviting and reasonable?

Jan Newcomb 17:57

Well, we do have a lot of committees, and that is that is a good way. And the other thing we do, which is permissible, is we do have people who are renters, that are not owners, that are on committees. Now, they can’t serve on the board, but they can volunteer on committees as long as the board approves them, so that they’re covered by our insurance,

Robert Nordlund 18:20

right? I like that, because then they, as a renter, have a vested interest in exactly their their environment. I

Jan Newcomb 18:29

mean, they are, even though they’re not homeowners, they are part of the community because they are there physically. What

Robert Nordlund 18:35

keeps drawing you back to the board? Well, multiple, multiple cycles yourself.

Jan Newcomb 18:42

Yes, well, I think the big thing for me, and it’s true, not only for myself, but for the people I serve, it’s our biggest investment, and I want to keep it looking great, so that we protect our investment, but we also continue to be able to enjoy a beautiful community.

Robert Nordlund 18:59

I got onto my board when the President resigned, I was the only person, or I think there was two of us in attendance at the board meeting, and President said, How about you be president? I said, Sure, I can do that. And then once I started working on it, that was my biggest belief, is that every hour I spent working on the association was going to come back to me in property values, and that my association, it was 71 times that. So I knew that my property values, I was protecting them, and I was carrying 70 other people along with me. And when you look at it as a board member, you have such incredible leverage to do so much good for so many other people when you’re making sure the community is staying neck and neck with where it needs to be in your local real estate environment, I

Jan Newcomb 19:54

invite you to drive in someday and see how beautiful it is. It’s.

Robert Nordlund 20:00

For everyone listening, I live probably two hours away in bad traffic. It’s three hours and I will, literally, Jan, be driving by your area in about two weeks. I may take you up on that. Oh, that would be great. That would sound like a nice place to drive. I’ll give you a tour. Oh, okay, that could be fun. Let’s take a quick break. Jen, I want to come back and hear more about legislation, the kind of difficulties that that has caused there at the association, and talk a little bit more about your priorities. But it’s time to hear now from one of our generous sponsors, after which we’ll be back to hear more about what we can learn from Jen’s experience.

Paige Daniels 20:40

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Robert Nordlund 21:14

we’re back. Jen, before the break, we were talking about the things you’re doing for the association and property values and things like that. How do you as a board prepare yourself to do well for the association?

Jan Newcomb 21:26

I think it helps definitely to make sure you get board member education, because, like I mentioned before, there’s so many laws and restrictions now on what boards can and cannot do, how they can do things now

Robert Nordlund 21:41

you’re talking specifically in California.

Jan Newcomb 21:44

Well, everywhere but California and Florida seem to be the most places that have the most laws that are constraining. You know how our associations operate,

Robert Nordlund 21:53

and you’ve seen all that because of your exposure to kind of the national picture from serving on Cai national type things. Okay, so you’re a board member in a high legislation state, so that makes it more complicated. Take me down the path. Tell me more about education. What does that mean? You have some legal training? Is that what you’re talking about, or is it

Jan Newcomb 22:16

other types of training? Well, what I have found is the legal part of it is obviously important, and because of my education, you know, I take that pretty seriously, right? But it’s important for board members, but it’s also important to understand a lot of what managers do, what business partners do, and I especially appreciate the education that the business partners put on and use you as a good example. I really appreciate all I’ll buy you well. I appreciate the webinars, because you help people understand reserves, and most people don’t. So it’s very it’s very helpful to, you know, make sure you’re not running afoul of the law, but also to find out more about how to do the other things, like maintenance or finances or whatever it is, how to get tips on how to really do that. Well, from people who are experts,

Robert Nordlund 23:17

let’s take you to other things you’re active in your local Cai chapter. Yes. So does that mean going to the monthly meetings and hearing the luncheon speaker and seeing the vendors around the back of the room, that kind of thing, finding out who’s offering

Jan Newcomb 23:35

what? Yes, it’s a great opportunity to meet vendors and talk to them about your needs, and you know whether they might be a good company to send us, to send bits about projects that we might be doing. But also, I’m on the Education Committee, and I’m also on the publications committee, and I’ve been doing that the publications committee for a very long time, and I really I enjoy writing, so that’s that’s a fun job.

Robert Nordlund 24:02

Okay, so you’re a board member at your association, you and you’re at on the Education Committee on the public publications, publications you are just, is this like beating in your heart to serve.

Jan Newcomb 24:21

I think what happens with me is, if I’m going to get involved, I get involved. So I’ve kind of been everywhere in Cai, you know, I’ve been on, like I say, the chapter board. I’ve been on the national homeowner Council, the Board of Trustees, and it really gave me a good understanding of not just what I need to know in California, but what’s going on in the whole country and actually outside the country now, because we have chapters in other countries, it gives you a much broader understanding of what is really going on with community associations everywhere. Yeah, and I think. What we’re going to see in Orange County is a lot of associations like mine, who are coming up on 50 years old. There was a lot of building going on in the 70s. And you know, those associations hopefully have saved enough money in their reserves to take care of what they need to take care of now. Yeah,

Robert Nordlund 25:20

we did, I think one or two episodes on D conversion, where condominiums unwind themselves, sell the land to a developer, and they become something else. That’s because they just have become there. They had to become financially not viable anymore. And I’m wringing my hands here because I’m hoping that we’re doing as much as we can to encourage and equip board members to serve their associations well. And I love hearing your tips to get in the stir. Go to your Cai events. There’s our company does free webinars. There’s other companies in different industries that are doing webinars. There’s so much to learn there. The benefits are so incredibly leveraged for everyone in your association, because everyone’s home values go up with the hours you spend. You talked about writing a lot. What is your next article? What’s percolating under the lid there?

Jan Newcomb 26:19

I’m actually writing a book, but it doesn’t really have anything to do with associations, okay, but for an article about associations, I think there’s got to be a way to get homeowners more involved in the governance of their association. I think a lot of people, and I was probably like this when I first bought in, because I thought, Oh, this is great. I pay my assessment. I don’t have to worry about anything they take care of. You know, the pool and the spa and the painting and the landscaping, yeah, carefree living and carefree living, right? But what most people don’t understand this is an experiment in self governance, if you don’t get involved. I mean, somebody has to be there to make these decisions. If you don’t get involved, you don’t even know it’s kind of like the rest of our government. If you don’t know what these people are doing that you’ve elected. Shame on you.

Robert Nordlund 27:15

Yeah. Well, and you, you mentioned it earlier, that associations do go in cycles, they follow the board member as far as what’s the the culture and the chemistry of the board. And so when you’re on the board, it may lean this direction. When you’re off the board, it may lean another direction, due to Southern California wildfires, laws in your state, whatever, there’s all these things push or the demographics you talked about some dogs and kids, times of renters, times of older downsizers. The community is changing. So it might have the same roof, it might have the same siding, but the community is literally changing as from day to day. This whole idea of being on the board helps you guide that ship of the association, that that nonprofit corporation, safely and successfully to the future. And it’s boy, I don’t think we do enough to celebrate board members for like you say, this experiment in how they they are the glue that holds this entire industry together,

Jan Newcomb 28:20

well and and all the people that, the managers, the business partners, all of them too, yeah,

Robert Nordlund 28:26

well, at least they’re getting paid. There’s a career for them. That’s true. Your association? Is it professionally managed? Yes, okay, and I want to say full management or financial only.

Jan Newcomb 28:39

It’s in transition. Let’s put it that way, because it was more fully managed when I first got on the board, I think. And what we have found is, if there are some simple things we can do ourselves, we can save quite a lot of money, so I started a maintenance committee. Okay? And we have the most wonderful people on this maintenance committee. We’ve got a retired engineer that knows how to fix anything. We’ve got a guy who used to work for a major corporation and handled vendor contracts. You know, it was in purchasing. I had a lot of experience with contracts at McDonnell Douglas, right, and also a lot of experience with conflict resolution. But as far as maintenance, then, there’s another guy who’s retired from Lowe’s, so he knows a lot about parts, and you know, he helps us understand whether something is bid reasonably or not right in terms of, you know what the costs are. So that’s very helpful anyway. What? What has happened over time is we have started doing some some simpler things just ourselves, and we’ve saved a lot of money that way.

Robert Nordlund 29:56

Yeah, well, I think there’s two levels to that. One is a level. That, yes, you’re spending less on a, let’s say, handyman, to do those types of tasks. But when you’re staying on top of maintenance, you stay so far ahead of the big deterioration that gets really, really expensive. So if you can stay on top of that, let me turn the corner and talk about board member style. We here on the program have talked about the 4c of effective board members that they need to care they need to be curious. What can I do about this? Why is this happening? Have the courage to take action and then to be able to communicate effectively. When you think back about what you’ve seen, what you’ve done, what you’ve learned from your Cai exposure. Does that cover it? Or do you have some additional characteristics that you would like to see more of, or that you see commonly in board members? What characteristics do you think of?

Jan Newcomb 30:54

There’s a bit of a dynamic that really goes two different directions. One of them is the business of the Association, and the other one is the community culture, if you will, of the association that’s getting harder to manage because we have more renters and more people that may not be as committed long term to the association. So I think you really need board members that you know can contribute from a number of different perspectives.

Robert Nordlund 31:30

Okay, I like that, and that reminds me. I liked what you said earlier about getting the renters to contribute by being on committees to being part of that culture of our community. This is our home. What can I do, even as Yeah, even as a renter,

Jan Newcomb 31:51

I’m hoping that we can turn them into owners at some point. That would be wonderful.

Robert Nordlund 31:56

That would be great. Hopefully they can get to a point where the owner finds out that this is a good renter. Let’s just let me transition out, and they can become homeowners. I like that. Well, Jan again, looking at the time, I don’t know if everyone enjoys this as much as I do, but I’ve known Jen for long enough to appreciate her years of service, and it’s great to be able to have her on the program today puts a smile on my face. Jan, so thank you for taking the time to join us on today’s program. Any final thoughts to share on your board member experiences

Jan Newcomb 32:31

just that. I hope people will get more involved. I’m trying to figure out how to make that happen, because we really need everybody to be part of this. We’re all in it together.

Robert Nordlund 32:42

Jan knows and we want to publicly acknowledge Jan for performing a thankless job well for those countless hours she’s invested at her association, for her local Cai chapter, and for everyone else that she’s touched, I want to compliment the board of directors for working with her at her association, all of those people for taking their job seriously to act in the best interest of the association. Well, we hope you gain some HOA insights from Jan’s story, and it helps bring more common sense to your common area. And remember, if you match our definition of a board hero, or know someone who does, please reach out to us. We love having board heroes on our program. Our contact details are provided in the show notes. Thank you for joining us, and we look forward to another great episode next week.

Announcer 33:32

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