Board Condominium Financial Governance Reserve Fund

Condo Vendors Work for the Board; Not the Unit Owners!

L.K. from New Haven County writes:

Dear Mister Condo,

A company was hired by the Board to do an assessment of the complex and provide a report to the board in order to get a loan. I called the person who did the report to ask some questions and he said he had been instructed not to answer questions from unit owners. All questions have to go to the Board first. No direct contact is allowed. Can the Board restrict unit owners from talking to a vendor hired by the Board and paid for by unit owners?

Mister Condo replies:

L.K., even though it might seem contrary to reason, the vendor was hired by the Board, not the unit owners. The vendor reports only to the Board. That doesn’t mean you don’t have a right to see the report once it becomes part of the association’s records but until then, the vendor, in this case it sounds like a Reserve Study expert, is correct not to interface with unit owners as it might color the report made to the Board. The Reserve Study specialist needs to be completely objective and present his or her findings directly to the Board. Your observation that unit owners have paid for this contractor is not technically correct. Yes, you and your fellow unit owners all pay your common fees but the governance of those funds is the exclusive purview of the Board. This is very similar to paying your taxes to the town or city in which you live. People that work for the town or city are not your employees, are they? No, the same is true for folks employed by the association. They work for the Board and are responsible only to the Board. I hope your Board makes good use of your new Reserve Study. Good luck!

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