Hired to manage properties, the companies frequently tell board members to not talk to contractors or others outside board meetings.
Joanne Qiu joined the board of Waikiki鈥檚 Seaside Suites condo association in March, hoping to help her fellow owners solve problems and lower association fees. Almost immediately, Qiu says, she ran into interference from the condo鈥檚 property manager, Moana Siaki, of Hawaiiana Management Co.
There was the time, for example, that Qiu says she tried to check on a water heater after the building lost hot water for four days with no response from management. Qiu says Siaki shut down the effort. The rationale: Siaki said Qiu was a board member only during meetings, Qiu recalls.
The same thing happened, Qiu says, when Qiu contacted the building鈥檚 fire alarm company at a fellow owner鈥檚 request to see if a new alarm system eliminated the need for an expensive security service. Qiu said this, too, was deemed out of bounds.
Even something as simple as attending to a clogged trash chute was purportedly verboten.
鈥淵ou have been advised on the role of a director, I strongly recommend that you adhere to that role,鈥 Siaki wrote in an April email after Qiu and a fellow resident had solved the problem.
It was all baffling to Qiu, who says she was taking seriously what she thought were her duties to fellow owners.
鈥淓very time I tried to help or do my duty as a board director, I got intimidated to back off and not to interfere,鈥 she said in an email outlining her communications with Siaki.
Siaki did not respond to requests for comment.
Raising Concerns
Qiu鈥檚 story is all too common. Although elected board members are officially directors with fiduciary duties to fellow owners and their associations, hired management companies often take control, not just to run the properties but also when doing things like communicating with contractors. That鈥檚 according to interviews with current and former condo board members, as well as lawyers on both sides of disputes among associations, management companies and owners.
The issue creates tension between the firms hired to manage condos and and elected board members who live in the buildings and volunteer their time to help their neighbors.
There are no statistics on how often management companies shut down board members who are trying to help solve problems. But Terry Revere, a condominium lawyer who often represents condo owners, said, 鈥渢hat happens all the time, and it鈥檚 horseshit.鈥
The issue potentially touches much of Hawaii鈥檚 population. There were 1,826 condo associations representing 173,036 units in Hawaii in 2021, according to the most recent data from the state .
Industry these associations govern some 360,000 people 鈥 or about 1 in 4 Hawaii residents. The vast majority of associations hire management firms. Major players are Associa Hawaii, Hawaiian Properties Ltd. and Seaside Suites鈥 management firm, Hawaiiana.
Among those promoting the idea that condo board members have limited power outside of the board room is , a condominium lawyer who frequently represents management companies and boards in disputes with owners. She acknowledged that “not everybody agrees with me,鈥 but she said board members shouldn鈥檛 talk to fellow owners, contractors or just about anyone else about condo issues.
鈥淥nce they leave that meeting, they鈥檙e no longer a board member,鈥 she said in an interview.
鈥淚f you have a concern, you bring it up at the board meeting,鈥 said Sugimura, an influential voice in the condo industry, as founder of the Hawaii Council of Associations of Apartment Owners and host of “” on the ThinkTech Hawaii Youtube channel.
Only the management company or site manager are supposed to communicate concerns with the contractor 鈥 not individual board members, Sugimura said. The board member should contact the site manager or property manager with concerns, as any resident can do, Sugimura said.
鈥淚f there鈥檚 a problem she observes, it鈥檚 OK for her to go to the proper person,鈥 Sugimura said.
Asked whether such prohibitions were spelled out in Hawaii鈥檚 condominium law, in condo bylaws or house rules, or anywhere else, Sugimura said they are not.
The issue, she said, is that such governing documents simply don鈥檛 give board members the right to act outside of the board meetings. Only the board president, as the association鈥檚 chief executive officer, would have the power to do anything outside a board meeting, she said. The burden should be on the board members to prove they have the power to do even seemingly benign things like helping unblock a trash chute or talking to a contractor, Sugimura said.
鈥淚f you want, show me where you have the authority,鈥 she said. 鈥淵ou don鈥檛 have it.鈥
Likewise, she said, board members have no duty to ferret out problems.
鈥淣owhere am I told I have to go and start investigations,鈥 said Sugimura, who is also president of the Pearl One condo association.
‘Eventually Good Board Members Leave’
For board members, being stopped from talking to fellow owners or contractors about problems presents a basic problem, says Michael Eaton, a board member of the owners association for Hidden Valley Estates, a community of garden-style apartment buildings in Wahiawa.
Eaton said he has to talk to people outside of board meetings to understand issues facing the community.
鈥淚f I didn鈥檛 talk to certain people, I would have no idea what鈥檚 going on,鈥 said Eaton. 鈥淣obody would know what鈥檚 going on.鈥
The prohibitions go beyond things that might be considered board actions, said Lila Mower, a former board member at Nauru Tower near Ala Moana who also works on condo issues as president of Kokua Council.
鈥淭hey鈥檝e muzzled us 鈥 not because we鈥檙e doing board business, but they鈥檝e just muzzled us as neighbors,鈥 Mower said.
The situation often pushes board members to quit, she said.
鈥淓ventually good board members leave, not because we don鈥檛 want to be good neighbors,鈥 she said. 鈥淲e want to fulfill our responsibilities. But what can we do?鈥
There鈥檚 another problem with board members being required to communicate problems only to management companies and site managers, said Rhonda Campbell-Sutton, a director on the board of Dowsett Point condominium in Nuuana.
鈥淲hat if your complaint is against the property manager?鈥 she said. 鈥淭hen what do you do? You have no recourse.鈥
As Sugimura sees it, the issue isn鈥檛 that people are trying to be good neighbors, but the opposite. Often, she said, board members misuse their authority to harass contractors and others.
鈥淭here鈥檚 something called micromanagement or harassment of staff,鈥 Sugimura said.
鈥淭he bottom line is, there are board members who will tell people how to do their jobs because they鈥檙e board members,鈥 she said. 鈥淎nd that鈥檚 a no-no.鈥
Revere, the lawyer who represents owners, dismissed the idea that all board members must be shut up completely to prevent bad board members from abusing their power.
鈥淚f a particular board member is actually harassing somebody, it can always be dealt with,鈥 Revere said in a text message. 鈥淏ut to do a blanket policy of owners can鈥檛 provide feedback or talk to another person is a ridiculous prior restraint on free speech.鈥
Board Charged Extra For Invoices
For her part, Qiu says Seaside Suites鈥 property manager, Moana Siaki, hasn鈥檛 been very helpful when Qiu has gone directly to the property manager and sought to put items on the board agenda: exactly the sorts of things Sugimura says board members are supposed to do.
When studying condo financial records, Qiu said, she came across one charge to the association of $7,000 for purported air-conditioning repairs for an owner who later told Qiu he knew nothing about such work.
The charge was troubling for Qiu, who said she pays a $1,000 monthly maintenance fee for a property with no pool or other amenities except for a grassy, park-like area on Ala Wai Boulevard. Part of her goal as a board member, Qiu said, is to get expenses under control. To that end, Qiu asked Siaki to add the item 鈥渋nvoices鈥 to the agenda of the next board meeting.
“The board should have copies for all invoices,鈥 Qiu told Siaki. 鈥淪o we understand the expenses and budget better in the future. We can use a shared google drive folder where Hawaiiana can drop all invoices and give all board members access to it.”
Siaki’s response: “HMC does not 鈥榙rop all invoices鈥 into a shared drive. Should the Board want copies of invoices, please note that there will be additional charges from accounting for researching and copy charges.”
The response left Qiu frustrated. The management company and its contractors have to account for the work they claim to have done, she said.
“What exactly did you fix for $7,000?” she said. “You have to give us detailed explanations.”
It makes Qiu wonder.
“First, they’re not helpful,” she said. “You want to go deeper: I think they’re hiding something.”
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About the Author
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Stewart Yerton is the senior business writer for 天美视频. You can reach him at syerton@civilbeat.org.