DUMB & DUMBER: We Don’t Need No Education

When Poudre Overlook HOA’s (POHOA) President Ballweber testified on behalf of the entire Board at the HOA Homeowners Rights Task Force (transcript below), she made a reference to opposition of a Task Force agenda topic that had been covered in previous meetings: Requiring HOA Directors to take some or training, or having some type of educational requirement as a prerequisite of serving.

It’s an odd position in the context of Homeowner’s Rights. I mean, “we don’t need know education” was my immediate earworm upon hearing her say it out loud. “Hey, Legislators! Leave those Boards alone!”

LORA BALLWEBER TESTIMONY: “Specifically, avoid placing new procedural reporting or training requirements on volunteer boards, as they will only further discourage homeowner participation.“

The vast majority of her testimony was a personal attack against me and my good faith efforts to bring a Board that regularly strays beyond the boundaries of CCIOA, The Non-Profit Act, and the Governing Documents – which is a duty all homeowners assume when they buy into an HOA. If they demand that the rules be strictly applied to all homeowners, then they should also be strictly applied to the leaders of the community. Otherwise, the result is a fight to get control of a Board because a privilege accompanies the position: To be excused from strictly following the rules, documents, and laws.

The Business Judgement Rule, which Task Force Members Ms. Jackson and Mr. Freedman both cited and raised during the 1/2/24 Meeting, gives Directors a free pass because, as difficult as this is for many to believe, ignorance of the law is . . . an affirmative defense.

But, as I considered the oddity for the next 24 hours, and began networking with some of the other people who testified, I realized that there was a part of the Q&A where she had an opportunity to tell us all why Legislators shouldn’t consider adding that requirement to CCIOA.

For those of us who have been advocates and stakeholders for the past 5 years, we are used to seeing Mr. Freedman and other Industry Lobbyists make the claim that if there are any educational requirements for HOA Directors, that it will increase apathy and leave Boards with unfilled seats. But, for not just a Board Member, but an ENTIRE POHOA BOARD to be coming to a public testimony forum repeating an Industry Slogan . . . it is somewhat shocking to hear.

But, in a follow-up Q&A exchange with Task Force Member Connie Van Dorn, President Ballweber got a second bite at the apple. She was asked to clarify, in any way, how educational requirements would discourage others from joining the Board. And, instead of backing it up with facts or experiences, she just repeated the same Industry Slogan.

CONNIE VAN DORN: No worries. So, um, thank you for your testimony. And one thing that you said I just would like a little clarification on is what do you mean by avoiding new training that might discourage volunteer homeowners to be, I guess, board members?

LORA: Well, the, um, previous, uh, task force meetings have discussed training and certification of boards. And if that’s required, um, homeowners are less likely to become involved in the boards.

One of the things I’ve observed about the political factions at Poudre Overlook HOA is that there are two primary groups. The one currently in power includes President Ballweber and her HUSBAND (which raises the issue about spouses serving on small Boards), Director Clay Jones (Treasurer), and Director Walker Flanary (Secretary).

This political group, which has at times named themselves Poudre Overlook Advocates (a group once led by Walker Flanary and Irve Denenberg), and have a history of fighting against a wide variety of rules applying to them. We had strong pushback from this group in having open meetings with homeowner participation back in 2018. Then, in 2019, they were vociferous opponents of using Robert’s Rules of Order – even though the Governing Documents required their use. Clay Jones spouse, who at one time was President herself, declared in a May 2019 Meeting that Robert’s Rules were not intended for Small Groups.

I followed up her comment with a copy of the section of Robert’s Rules that literally and specifically calls out the variations for “Small Groups”.

But, this group was removed from power in August of 2019 with a Removal Action, which, if we are going to be fair, honest, and accurate, was done with an insufficient vote of only a majority, when a 67% Majority was required by CCIOA. With DOZENS of homeowners involved, no one would successfully interpret CCIOA plainly written statute that says it has to be a 67% vote. Not one person in 87 homes fought for the right answer – so the removal was technically improper, a violation of CCIOA, and not legally effective.

The new group that took power was dilligent in trying to learn how to properly follow CCIOA. I saw many examples of their good faith efforts to learn – and learn quickly with no experienced persons creating continuity. But, even they made mistakes.

They didn’t think they had to follow FHA Law – which led to litigation when they refused to recognize that a person who was in a protected class was being threatened at his front door (with someone pretending to point a gun at him in their jacket pocket), and then getting verbally abusive towards him at meetings to the point where he resigned. I stood up for him and demanded that the Board intervene and follow FHA Law.

We had an uneducated attorney who advised them that no, my interpretation was incorrect. And, they went with it and were ultimately sued – as they refused to mediate, or even have a hearing. Instead, they staged a kangaroo court showdown at an open regular Board meeting, and then documented how they mocked the seriousness or legitimacy of the situation.

Over and over, we have seen how a lack of education has led to disputes, a fractured community, and even litigation. But, instead, President Ballweber attempts to revise history by claiming that, instead, the hostile environment is created by those who ARE educated and have taken classes that issue certificates on various HOA Director topics, are the ENEMY. They want so badly to preserve their ignorance, the threat of a homeowner telling them that they are doing anything incorrectly (or failing to do something correctly), that they treat the notice as harassment – and build a political case of victimhood because they have some absurd right to remain ignorant.

And, we are to believe that others do not want to join the Board because an education requirement is what would tip the balance in their decision-making?

It’s the exact opposite. Those that are educated are appalled by the absolutely ridiculous bordering on insane decision-making that is being made by people who think that all that matters is that they vote on something. They can choose anything they like, and CCIOA, the Non-Profit Act, and FHA/HUD rules are something that they can choose to follow, or not – because the Business Judgement Rule gives them absolute immunity from ever being held accountable.

It’s projection, once again.

And, for the evidence of this at POHOA, we can look to the election of Dr. John Tunna and his resignation in August of 2023 after just 7+ months serving. He used the first month, over the Christmas/New Year’s Holiday to give himself a crash education on CCIOA. I was invited to his home several times, and each time he had a TYPED AGENDA for our meeting, with extremely well written questions that demonstrated he was finding the most challenging aspects to understand. I was very impressed with how quickly he got up to speed – literally the fastest I’ve ever seen anyone in Colorado do so.

And, once you become knowledgable, it is EASY to spot when other Directors are making COMMON ERRORS. It’s akin to taking a food safety class, and then going to a commercial kitchen and seeing people who have been in the business for a decade cut up raw chicken on a cutting board, and then using the same cutting board to cut lettuce for salads! It’s shocking!

And, that’s the problem here: Because we have Directors who, in some cases may have run other HOAs for a decade elsewhere, particularly in another state, they SCOFF at the prospect of being told they need an education. They would prefer to sit in judgement of Colorado’s laws, and even dare to say – we just aren’t going to follow them. That’s what Director Walker Flanary just said at a November 2023 meeting in regards to following Larimer County Code – which is literally an act of defiance, not compliance. It is one thing to be ignorant and protected by the Business Judgement Rule and enjoy that immunity, but it is an entirely different thing when you know, or should have known what you are doing is wrong.

And, right now, without structured education, it is difficult to tell what any Director knows or does not know.

And, because POHOA operates without requiring Directors to sign a Code of Conduct (which I have been recommending since 2019), there’s not even encouragement to do what Dr. Tunna did, and self-educate. There’s more incentive to be and remain ignorant than there is to even get the mildest education!

We wind up being the Dumb & Dumber HOA!

Poudre Overlook HOA had 2 open Board seats going into December 2023 elections. The only people who attended the meeting, for the mostpart, were people who are supporting this willful ignorance. At the meeting, they literally filled one seat with the spouse of the sitting President – when any basic research into the matter demonstrates it is a terrible idea that many HOA Attorneys recommend changing the Bylaws to prevent it. But, they just barrelled ahead with it because the are desperate to have anyone on the Board who IS educated.

Which leads to the ongoing issue with my candidacy and disputed election. I have met many HOA Homeowner Rights Advocates who know FAR more than I do. At best, I’m a Sophomore, and honestly look to people like Dr. Tunna for advice because I know he’s done a tremendous job not just to know the text of CCIOA, but to investigate the nuances of the gray areas – and is willing to consider that some interpretations of CCIOA are in open dispute – even among attorneys.

But, I do know what I’m doing perhaps more than the average homeowner in Colorado. Participating in the legislative process for 5 sessions has led to some insights and access to these super-smart people, and maybe a little has rubbed off on me. THAT is what President Ballweber and the current Board fear – because they can’t simply say “point well taken” when they are absolutely and objectively wrong.

I’m actually grateful for President Ballweber’s testimony, in this regard. Because, having the people we are complaining about a need for statutory education requirements show up and demonstrate why they need them is somewhere between a miracle and a gift. I absolutely disagree that education requirements discourage people from joining boards. It prevents WILLFULLY IGNORANT people from joining boards, and then getting the benefits of immunity from the Business Judgment Rule, which they do not deserve.

I believe that the legislature should strongly consider making these requirements include a provision that if you do not get and keep up the education (and perhaps credentials), you should not, by statute, enjoy the benefits of the Business Judgment Rule. If you cause harm to the Association due to your ignorance, you should lose indemnity – and maybe even the right for the insurance company to represent you.

Once we have Boards with qualified persons, it will attract others who wish to serve as a volunteer with others who can build and enhance their professional skills and experience. Letting the ignorant play power games while thumbing their noses at the rules is what makes such Boards so unattractive. And, its why I believe John Tunna resigned. You can’t get work done when your team is dominated by those who can’t follow the basic rules and procedures defined in laws and governing documents.

And, this blog has documented YEARS of ignorant non-compliance.

Until the community decides to vote out this political party, we are likely to see the status quo. Unfortunately, the victimhood self-pity of the Board is giving them emotional cover to continue to hoard proxies, and make it about us vs. them. The situation isn’t ripe yet for changing this dynamic.