November 2014
As with people, condo boards can be classified as Type A or Type B. When it comes time to vote for a Board of Directors, understanding this distinction can be important to electing the type of board desired.
Type A boards are generally proactive.
They seek ways to improve their building, its management and communications. Knowing that other buildings compete with theirs to attract new owners, they constantly seek to improve. They are innovative; testing new ideas, adopting those that are effective and discarding those that do not work out . If they are also financially prudent, they strive to maintain a strong financial base – reserve and operating funds. This allows them to undertake building upgrades when dictated by wear, damage or volume of use. They do not fall back on outdated estimates to support inaction.
Type B boards are more reactive than proactive.
They are content with how things are and do not easily embrace change. They are more likely to react to complaints rather than attempt to prevent or minimize problems. They are less concerned about maintaining a strong reserve fund, aggressive planning and the need to address future funding requirements. Such complacency may not be noticed at first and even considered financially prudent or desirable. Over time a shortage of funds, the need to replace outdated or damaged infrastructure and equipment, and a desire for modern amenities that do not look worn, old or damaged all take a toll. A need for funds in the short term can result in a costly special assessment to cover needed repairs or upgrades. In the absence of these funds, property values drop as other buildings become more desired due to cleanliness, quality of amenities, socialization and owner involvement.
