Small Associations

Source: Adrian J. Adams Esq. 

QUESTION: I am a board member for an 8-unit association. Perhaps you can help me with some questions: (1) Do smaller associations have fewer disputes or legal problems? (2) Is governance different from that of a large association?

ANSWER: There are distinct differences between large and small associations. When it comes to disputes, large associations have more of them but small associations experience greater suffering when conflicts erupt.

Critical Mass. Whenever you put people together, you have potential for conflict. The more people, the more conflict. You have more nut-cases in a 500-unit association than a 50-unit, and a 50-unit has more than a 5-unit. The other factor is density–the tighter people are packed together, the greater the friction. If you put 500 people into single-family homes with 20-foot setbacks, there are very few neighbor-to-neighbor disputes. If you stack people on top of each other with nothing more than a wall or ceiling separating them, you suddenly have a lot of squabbling over pets, parking, noise and water leaks. It’s like uranium, if you pack enough of it into a confined space, you get an explosion.

Resources Help. Because small associations are small, they have fewer people. With fewer people, there is less chance of a crazy living in the development. The disadvantage of a small association is its lack of resources. If an 8-unit gets a Ted Bundy in their midst, they have no way of stopping him. He can terrorize his neighbors and cripple the association’s budget. Large associations have the benefit of healthy budgets that allow them to hire legal counsel and professional management to address disruptive homeowners. The intimacy of a tiny association is wonderful when it works and a nightmare when it doesn’t.

Governance. It’s been my experience that governance of small associations is more casual and more consensus driven. If there are only a handful of families, they get together, discuss a matter and make a decision. The opposite occurs with large associations. The larger the community, the more formal meetings become with directors setting policy and others handling the details, e.g., professional management is employed, legal counsel hired and consultants retained. See factors to consider when Buying a Condo.