“Many new board members bring valuable professional experience, but quickly realize there's a learning curve around understanding governing documents, reserve planning, contracts, budgeting, and their fiduciary responsibilities,” says Andrew Sytnik, CMCA, Vice President at nationwide property management firm FirstService Residential. 

Shortening that curve for newer volunteers not only helps them step into their role more quickly and seamlessly, but puts your building or HOA on firmer footing, even during times of administrative transition. 

Understanding Your Role

Orienting new board members begins with establishing an understanding of the board’s fundamental duties and responsibilities, says Katheryne Theodoulou, branch president at Bedford, New Hampshire-based Evergreen Management. “One of the first parts of the process is really educating members on the ‘why’ of board service,” she notes. “This way everyone understands the significance of their role and responsibilities.”

The learning curve for new board members is often steepest when it comes to the community’s finances; both the day-to-day minutia of ordering cleaning supplies for common areas as well as longer-term capital planning. The former requires an understanding of what it takes to keep the building or HOA clean, secure, and well-maintained on a daily basis, while the latter requires knowing the condition of building systems, mechanical equipment, and exterior envelopes, as well any upcoming large-scale projects.

New board members need to understand both their building's overall financial condition and its everyday governance. “As a shareholder, you’ve likely been receiving financial statements [from your board], but may not have an understanding of the building’s bottom line—how much money is in the reserve account, and excess income,” says Rebecca Poole, Director of Membership at the Council of New York Cooperatives & Condominiums (CNYC). To fill in those gaps and put it all into historical and current context, the pros advise board presidents and/or treasurers to sit down with newly-elected members to go over the community’s books in depth, giving the newcomers an opportunity to ask questions about anything they’re unclear on. 

Clarifying the distinction between governance and management is another critical conversation to have at the start of a new board member’s tenure. Contrary to what many residents may assume, “The board alone has the ability to set direction and make policy decisions,” Theodoulou explains. “Management are the ones who then execute those decisions and oversee day-to-day operations.” 

She notes that because this dynamic differs from a more standard corporate structure, new board members often misunderstand it. “We [managers] work on behalf of the board of directors—we don't necessarily have the power to make or execute those decisions ourselves,” she says, adding that “every decision should be made for the benefit of the association as a whole, and not out of individual interest.”

And that brings up another crucial point of understanding for new board members. It’s not uncommon for residents to run for a seat on their board to push a personal agenda or get a pet project off the ground, even to the point of trying to leapfrog it over capital repair or improvement projects that should take priority. Part of orienting new board volunteers is driving home the understanding that the overall governance of the association is the foremost priority. Changing the lobby carpet color or getting a bigger flatscreen in the clubhouse should definitely take a backseat to fixing the roof or upgrading the boiler. “That’s a little bit of an 'aha moment' for some board members,” Theodoulou says.

Welcome Aboard

Having a board orientation system in place not only supports incoming members, but can also help get residents to volunteer to serve in the first place. Recruiting new board volunteers is challenging for nearly all multifamily communities, and depending on a building’s size and makeup, the pool of candidates may be small, leaving members to serve long terms out of fear that nobody will step up to replace them if they try to step down. People offer plenty of excuses for not serving on their board; work, family obligations, and limited free time are big ones, as is lack of experience with administration and governance. If residents know there’s a structured onboarding process for new board members, it takes a lot of the trepidation out of volunteering, and enables new members to serve more confidently.​

Marilyn DelVescovo, a veteran member of her co-op board, suggests that board officers and property managers meet with new members before their first meeting to give incoming volunteers a clear understanding of the managing company's organization, the board’s role, and the administrative structure of the community as a whole. She notes that giving new members an overview of the management company’s entire ecosystem, including accounting and support staff, enables them to have a better understanding of exactly how day-to-day operations are handled, and to whom they should turn when questions or issues arise. 

In addition to a sit-down orientation meeting with current board members and management, a welcome packet containing the community’s governing documents, current budgets, recent financial statements, reserve studies, current and upcoming projects, key vendors, insurance summaries, annual calendars, and any other relevant information is hugely helpful to newcomers. Sytnik recommends creating a simple onboarding binder or digital resource with these materials and scheduling dedicated time with the community manager to walk through them. 

Giving new board members access to the recent history of their association gives them perspective and helps bring them up to speed more quickly so they can make informed decisions. “One of the best tidbits that I’ve heard is giving new board members six or 12 months' worth of minutes so that they have an understanding of the issues the board's been dealing with, and any steps the board's taken to resolve those issues already,” says Poole. 

And, adds DelVescovo, “If the building is in the middle of a major project, [when a new member joins the board], you would want to prioritize that in their orientation,” explaining the cost and scope of work being done, the contractors involved, timeframes for the various stages of the project, and so forth. 

That being said, the pros are careful to stipulate that without some context and explanation, a big stack of documents is just that—and is no substitute for a hands-on, in-person orientation meeting.  

Pairing new board members with an experienced board member can also help shorten the learning curve. “Orientation shouldn't end after one meeting,” Sytnik notes, adding that “the strongest boards view the first several months as an opportunity for ongoing learning so new members can build confidence and contribute more effectively.”

Confidentiality

In addition to learning the basics of how the building operates, new board members also need to understand that they have transitioned from resident to fiduciary. Theodoulou recommends setting expectations early, stressing the importance of meeting attendance and clearly setting expectations around professional conduct and handling confidential and sensitive information.

Many boards implement a code of ethics agreement or confidentiality statement to set boundaries from day one, adds Poole. “It's extremely important that board members understand this upfront," she emphasizes. "As shareholders or unit owners, they haven't been used to handling confidential information, and you don't want them to leave their first meeting and start sharing information they wouldn’t have been otherwise privy to.” 

Beth Gazes, associate at NYC-based law firm Gallet Dreyer & Berkey, LLP,  suggests implementing a written policy that incoming board members must acknowledge with a signature. “It’s more of an expectation than a confidentiality agreement,” she says, “basically conveying to a new board member that the board expects them not to discuss corporate business with anyone outside of the room. That is especially important in residential buildings where occupants expect a certain level of privacy.” 

Mentorship & Continuing Education ​

From a legal perspective, most states (including Pennsylvania, New Jersey, and New York) don’t require board members to be professionally trained or certified in order to serve, but there are some key organizations that board members can and should join—like the Community Associations Institute (CAI)—that offer regular education seminars and resources, says Gazes. 

“Board members who take a proactive approach and join these or similar groups and attend meetings are putting themselves in a really good position to do their best to stay current with legal issues and understand how other boards do what they do,” she says. “The key is to ensure that the board’s activities are protected by the business judgement rule should a shareholder or owner challenge the board.” 

Another option is to pair incoming board members with current or veteran volunteers who can act as mentors to their new colleagues. “The idea is to ask board members who have been around for a longer period of time if they would be willing to mentor other interested board members on topic-based discussions,” says Poole.

​Preserving Knowledge

Another challenge boards face is making sure all of the valuable knowledge they’ve accumulated isn't lost when leadership changes are made. While keeping accurate meeting minutes is one way to do this, it's just as important to document why major decisions are made so that future board members understand the full picture, and not just the bare outline sketched out in the minutes. ​

Sytnik says that maintaining organized digital records, documenting long-term capital plans, updating onboarding materials, and establishing consistent transition processes all help preserve information. “I've also found that working closely with a professional management team provides valuable continuity over time, helping ensure long-term priorities remain on track even as board membership evolves,” he adds.

Active community involvement can also help preserve institutional knowledge. Sytnik says that “When residents are engaged through open board meetings, committee involvement, and regular communication, knowledge is shared across the community, instead of being concentrated with just a few individuals.” 

People typically run for their board because they’re invested in their community and want to contribute—and having an organizational framework in place helps lower the bar to entry and gives everyone an opportunity to participate. “Board members are volunteers,” Poole reminds, “and they want to feel like they’re accomplishing some of their goals. You want to make sure they feel valued.” Ultimately, the onboarding process doesn’t just serve new board members, it helps make the entire building community stronger. 

Kate Mattice is Associate Editor of CooperatorNews.