Strategic Issues (Board’s Role)
Strategic responsibilities involve long-term decision-making and policies that shape the condominium corporation’s future.
Key Responsibilities:
Establishing policies and procedures aligned with legislative requirements.
Approving financial forecasts and reserve fund plans.
Conducting risk management assessments to safeguard the corporation.
Ensuring compliance with CPA and Real Estate Act Rules.
Engaging in policy development for transparency, governance, and ethical conduct.
Example:
A board reviewing its reserve fund study and approving a long-term capital maintenance plan is engaging in strategic governance.
Operational Issues (Condominium Manager’s Role)
Operational responsibilities involve daily tasks and implementation of board decisions.
Key Responsibilities:
Vendor selection and contract management (e.g., hiring landscapers, security services).
Maintenance scheduling and coordination (e.g., repairs, inspections).
Responding to owner complaints and requests.
Budget tracking and financial reporting.
Enforcing board policies and bylaws in day-to-day operations.
Example:
A condominium manager overseeing the execution of a vendor contract and ensuring maintenance tasks are completed as per schedule is performing operational management.
The Role of the Condominium Manager in Governance
Condominium managers act as executors of board policies rather than decision-makers.
Ensure compliance with CPA requirements and enforce bylaws.
Provide advisory support to the board regarding financials, maintenance, and governance.
Implement board-approved budgets, policies, and strategic initiatives.
Act as an intermediary between vendors, owners, and the board to facilitate efficient operations.
Legislative Reference:
The Condominium Property Act mandates that condominium managers act in accordance with the bylaws and policies of the corporation, ensuring proper administration and financial oversight. This reinforces the role of managers as operational facilitators, not decision-makers.
The Impact of Board Overreach into Daily Operations
When boards involve themselves in operational matters, several challenges arise:
Inefficiency: Micromanaging day-to-day operations slows down decision-making and disrupts workflows.
Conflicts with Management: Condominium managers are hired for operational expertise—excessive board involvement dilutes their authority.
Legal & Compliance Risks: If a board directs actions that violate CPA regulations, the corporation may face penalties.
Example:
A board member directly instructing maintenance staff on how to perform repairs, bypassing the manager, creates liability and operational confusion.
Case Study Analysis
Scenario:
A condominium board meeting agenda includes the following items:
Reviewing vendor contracts and selecting a new cleaning service.
Setting long-term budget plans and reserve fund allocations.
Responding to an owner’s complaint about noise disturbances.
Developing a policy for handling future noise complaints.
Task:
Classify each agenda item as strategic or operational and determine whether the board is overstepping its governance role.
