Reasons Why New Board Members
Must Read Historical Minutes and Financial Reports
When a newly elected member of the board of directors takes the time to real minutes and financial reports going back in time, they are likely to learn about the following, assuming they exist:
- Whether there is a history of plumbing leaks that would warrant replumbing the building in order to minimize future water damage and resulting liability.
- Whether there is a history of roof leaks that would warrant a roof replacement in order to minimize future water damage and resulting liability.
- Whether there is a history of criminal activity at the property that would warrant hiring a security consultant to assist the board in making the association a safer place.
- Whether the association is in compliance with the laws requiring associations to obtain periodic reserve studies.
- Whether construction defects have been discovered but remains unrepaired.
- Whether threats of litigation or court judgments exist that should be addressed.
- Whether delinquent assessments exist requiring collection action that is not in process.
- Whether any unresolved insurance claims exist.
Board members should also review: All New Board Members and Board Members New to American HOA Management and the Checklist for Buying Condominium.