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January 2008 ISSUE We do not make jokes, we simply watch the LA Times, the Orange County Register and CID/HOA board of directors and report the facts! |
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Scrutiny of Community Journalists The
question is, what type of community journalism are you
getting from your local reporter(s)?
December
26,
2007
Community journalism can be viewed as a form
of reporting news and information for a certain
geographic area, with the purpose to serve the best
interests of the community - a
vehicle for journalists working with citizens,
communities and institutions for social change.
However, change is not what local governing
bodies usually want or advocate, - in fact, we have
witnessed several "political assassinations in
efforts to maintain the status quo - we have seen
several hence the need for the
adoption of watchdog journalism when engaging in
edifying community journalism.
Watchdog
journalism refers to forms of activist journalism
aimed at holding accountable public personalities and
institutions whose functions impact social and
political life, as compared to lapdog journalism,
used as a conceptual opposite to watchdog
journalism. Tools of the trade include community
Immersion
and
affinity groups.
During community immersion, reporters live or
spend time in the community to study its geography,
demographics, determine citizen needs, interests,
aspirations, and generally to interact with community
members as a step towards building trust, whereas
community conversations take place in affinity groups,
such as the Coto Discussion Forum or the
LagBlogzz –
Laguna Woods Village Discussion Forum.
Community conversations allow journalists to
probe for insights without becoming intrusive or
invasive. The Nieman Foundation for Journalism at Harvard University
was founded in 1938 "to promote and elevate the
standards of journalism in the United States."
The premise that great questions are a key to great
journalism and that the goal of watchdog journalism is
to see that people in power provide information the
public should have drive the Nieman Watchdog
Journalism Project - “The Nieman
Watchdog Journalism Project grows from this premise
and this goal: to help the press ask penetrating
questions, critical questions, questions that matter,
questions not yet asked about today's news” (NiemanWatchdog.Org, 2007). Given
the widespread “paraphrasing” of community news,
and that arguably, the fastest growing form of housing in the
United States, since
the mid-1960s, is common-interest developments (CID/HOAs),
a category that includes planned-unit developments of
single-family homes, condominiums, and cooperative
apartments - the Community Associations Institute (CAI)
trade association estimated that HOAs governed 23
million American homes and 57 million residents in
2006 – we apporached the editors of the NiemanWatchdog.Org Web site suggesting watchdog
journalism for community reporters covering CID/HOAs. The
editors were receptive, thought the idea had merit and
asked us to prepare a set of questions for local
governing bodies listed below. George
K. Staropoli of Citizens
Against Private Government HOAs, Inc in the
article titled "Is it good public policy to
support undemocratic, private governments that deny
COMMUNITY
WATCHDOG JOURNALISM QUESTIONS 1. QUESTION:
How do you know that you (the board of
directors) are providing the best possible service? REASONING: Most responses will focus on cosmetics rather than on the
substantive. Such
as “based on recent surveys”, etc. We recommend that HOAs manage to the Triple constraint.
That is, they need to develop a Scope of
Service so that homeowners know what to expect from
their association fees. Then, clear instructions are
issued to the property manager, and legal counsel.
Board of directors with limited business
experience will manage to the “legalese”, rather
than common sense, and thus the legal fees go through
the roof. A HOA’s budget is a function of the Scope of services rendered, legal counsel and property management competence. This is illustrated by the equilateral triangle below. In order for the HOA board of directors to cost efficiently improve the quality of services while increasing the budget, property management and legal cost must be constrained. In most cases, the budget increases, but the increase is consumed in either legal fees or property mismanagement (Financial Controls Manual)
2. QUESTION: Do
you consider your community safe?
What percentage of your association fees is
allocated to security?
How do they compare to the fees paid by the
Safest City in America such as Thousand Oaks,
California population 110,00
$2,200,000/year security budget (2005) REASONING: In general, HOAs
spend 25-30% of their yearly budget on security,
then typical governing documents specifically
say that "the association does not provide
any security".
The management structure lends itself quite
nicely to mismanagement, fraud or both.
For example, it is not unusual to witness turf
battles between the property management and the
security company.
Most security companies invoice for their
services based on time sheets.
However, most security companies do not have a
“time and attendance audit program” and in fact,
we know of one who has directed employees not to
document tardiness or absences.
These instructions came after the
same company over-invoiced the property management for
$168,000.
The property manager did not detect the error Other attributes associated with HOA security programs are:
3. QUESTION: How
often do you use consultants?
How do you decide which consultants to use? REASONING: Most HOA directors
do not have any practical business experience.
At best, their qualification may be to have
memorized archaic regulations contained in the
governing documents (CC&Rs).
Typical organizations do not have actionable
due diligence plans, resulting in the
blind-leading-the-blind syndrome. (
Due Diligence IT Template) 4. QUESTION: Are
you concerned with conflict of interest or fraud
within the HOA? Are
directors required to sign a Rights
and Responsibilities document? Are Board of
director’s candidates required to be certified? REASONING: Apple pie question,
with predictable response.
The facts are that HOA are an excellent target
for rampant conflict of interest, fraud, etc.
This may be due to naiveté, incompetence,
greed, or all of the above.
Aside from audit reports issued by an
independent accounting firm, there is no systemic
methodology or know-how available to the HOA directors
to prevent fraud, or conflict of interest (Accounts Payable Audit Template) If Peter’s Principle can be applied to the
corporate world, the HOA principle applies here when
selecting a HOA board of directors!
5. QUESTION: Who
typically runs your HOA meetings?
Elections? RESPONSE: More often than not, legal counsel and/or management company
representatives, rather than directors, manage meeting
and elections. A
case of the fox guarding the hen house? 6. QUESTION: How
do you fight apathy?
How do you build a shared vision? REASONING: Invariably, HOA board of directors likes to discuss
controversial subject behind closed door.
The California Civil Code (1363.05c). States that all owners have the
right to attend all meetings of the Board other than
when one of 5 topics (see below) is being discussed. For all such meetings they need to give all owners a
minimum of 4 days notice. Further they need to
general note any matter discussed in executive session
in the minutes of the immediately following meeting
that is open to the entire membership
In general owners are not
encouraged to attend meetings, they do not received
meeting minutes and have difficulty getting access to
audited financial results, and when confronted,
independent auditors typically refer you back to the
board of directors. 7. QUESTION: What
do you do to minimize legal action within the
Association? REASONING: If we live in a litigious society, this is not much more evident
that when you are part of a HOA.
You have neighbors suing each other, suing the
board, the property manager and vice versa. 8. QUESTION: How
do you build a sense of pride in the community? REASONING: There are countless
factors affecting how one builds a sense of community
within a HOA, including demographics, local county
government, residents and the board.
The best way to create pride in the community
is resident involvement and having a shared vision.
However, if such involvement is a function of
the current board, the results will be as expected,
partisan. 9. QUESTION:
Do members of the community trust that a
legitimate violation of the CC&Rs will be handled
in a professional manner? 10) QUESTION: Do you think your county taxes and your homeowner dues
are
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