C


ommon interest associations can sometimes feel like they are in danger of capsizing. Whether their precariousness results from underfunded reserves, a looming major project, a devastating property loss, delinquent assessments, or problematic policies and procedures, the first step in saving the day is to initiate a righting moment.


By CAI staff writer


As defined in the opening paragraph, the righting moment is the combination of the righting arm and the weight of the ship. Though in actuality, the “righting arm” can involve some complex mathematics, for the purposes of this article, let’s think of it as a decision or solution that was “calculated” or arrived at by an association. The weight of the ship in an association can be thought of as the strength of the board and management. They are the force that can keep momentum going and can follow through on the corrective action needed.


What can be a righting arm for a common interest association? When the danger looming is insufficient reserves, an association may approve an increase in assessments or a change in spending practices to increase funding into its reserves. When the threat is an impending major project, the righting moment can be bringing in experienced consultants and vendors to plan out the scope and extent of the project, securing financing and an affordable debt repayment plan. A righting moment can take the form of engaging the association’s insurance provider, passing special assessments, passing


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