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To Tell the Truth

Why suppressing bad news can make matters worse

In February, the board of directors of the Val Vista Lakes homeowner association fired its executive director. But you never would have known by reading the community newsletter. Val Vista Lakes Community News, the monthly newsletter for the 2,200-unit Mesa, Arizona community, never mentioned that the popular executive had been fired. It never discussed the furious reaction to the firing by many residents. It never covered the recall effort to remove the board from power, and the petitions signed by nearly half the community's residents.

That's because the board controlled the newsletter's editorial content. The board decided which articles were published and what information members needed to know. Until the executive director was fired, no one had questioned the policy. But now members were quite aware that they had not been informed--and they were angry.

The recall pressure grew. Finally, on July 5, the board voted to give editorial control of the newsletter to the independent firm that wrote and produced it. The editor, not the board, now determines the newsletter's content.

Val Vista Lakes is hardly the only community association board that has final say on its newsletter's editorial content. In many associations, the board not only approves the newsletter, board members write the newsletter.

The newsletter is typically a board's best tool for promoting association projects and sharing good news. But what about bad news? Are associations obligated to tell the whole truth, or just their version of it? If a homeowner writes a letter criticizing the association, is the newsletter obligated to publish it? What is the difference between good editorial judgment and censorship?

Freedom of the press is guaranteed by the U.S. Constitution. It is not guaranteed in a private community. You may find, however, that covering all of the issues is in the best interests of the homeowners and the board of directors.

News That's Fit to Print

Technically, a community association newsletter has no obligation to present opposing viewpoints or negative information. The newsletter is a house organ. It exists for the association to communicate with members, not for a disgruntled owner to attack the board.

"The only test is that the board--and thus the newsletter--act in the best interests of the association and its members," said Vienna, Virginia attorney and CAI President-Elect Bob Diamond. "Reasonableness and fairness should be afforded, but there is no Constitutional obligation to publish negative information."

But acting in the association's best interest doesn't mean ignoring potentially negative issues. Brent Herrington, PCAM, an Arizona community manager and a creator of CAI's Community Associations Online (CAO) computer network, believes a board has a moral and ethical duty to advise the members of any major decision affecting their ownership interest. Concealing important information, he feels, is a violation of members' trust.

"When news leaches out as gossip, it heightens suspicion, amplifies interest, and reinforces the perception that the board has done something wrong," said Herrington. "Backlash becomes inevitable. It wastes time and causes confusion. It burdens staff with having to explain the situation over and over, and people end up hearing different versions of the story."

Withholding information can also destroy the association's credibility. As Janice Phagan, PCAM, writes in CAI's GAP Report 15--Communications for Community Associations, the newsletter is often the voice of a community. If members believe they can't trust this voice, how can they trust the board?

"We all dread going public with unpopular news," said Herrington. "But it never pays to conceal important facts from members."

Nothing to Hide

How should a newsletter treat controversy? By confronting the issue head on.

"Litigators have a rule," said Hawaii attorney Richard S. Ekimoto. "If you know the jury is going to find out about something bad, you tell them about it first, because you can control the impact and you don't look like you're hiding something."

This also applies to newsletters. To quote poet Michael Drayton, "ill news hath wings." If something negative has happened, residents will find out. Mistaking apathy for ignorance can be fatal. The best way to handle bad news is to address it, not to ignore it.

"If you approach the community from the beginning, you won't be put on the defensive," said Becky Lu Brown of Community Consulting Services in Carson City, Nevada. Brown uses the example of Marcia Clark, the prosecuting attorney in the O.J. Simpson trial.

"She knew that Mark Fuhrman was egg on their face and that the defense would make it an issue, so she didn't hide it--she discussed it up front," said Brown. "She confronted the problem then said, `Now let's focus on the real issue.'" If a newsletter is covering a controversial decision, Brown suggests focusing on why the decision was made. Cover the pros and cons. A recent summary of a town meeting in Life at Ken-Caryl, published by the Ken-Caryl Ranch association in Littleton, Colorado, discussed a variety of comments from members. According to Ken-Caryl General Manager Chris Pacetti, residents want to hear all sides of an issue.

"It gives more credibility to our publication to present as much information as we can, whether it supports our cause or not," Pacetti said. "Not everyone is going to agree with your decisions. There's nothing wrong with that. It's always better to tell both sides of the story."

Life at Ken-Caryl also includes letters-to-the-editor page. Many experts believe a letters page is the best way to handle opposing viewpoints.

"In a letters format, people will understand the comments for what they are--that they represent the views of the writer only," said Wendell A. Smith, an attorney with Greenbaum, Rowe, Smith, Ravin & Davis in Woodbridge, New Jersey. Smith suggests that associations allow a variety of letters, provided they are not offensive--no racial or ethnic slurs or profanity, for example--or libelous.

Libel is damage to a person's reputation. The Associated Press Stylebook and Libel Manual defines libel as "words, pictures, or cartoons that expose a person to public hatred, shame, disgrace, or ridicule. or induce an ill opinion of a person." The association is obligated to ensure that nothing published in the newsletter--be it a story or a letter--is libelous.

Board Control

If the newsletter lacks clear policies and procedures, a letters page won't necessarily provide owners with a voice. Becky Lu Brown knows this from experience.

Several years ago, as manager of a community in Oregon, Brown struggled with a defensive board in a debate over information disclosure. Alienated members accused the newsletter of being a one-way association mouthpiece and threatened a recall vote. The association eventually agreed to publish letters to the editor.

One problem. The board only printed letters it liked, not ones it didn't.

Brown believes part of the problem was that the newsletter lacked formal guidelines, policies, or procedures. The Communications Committee, which was supposed to be the editorial arm of the board, was unsure of its authority. No one knew what was expected.

Wendell A. Smith recommends that the board adopt a comprehensive policy resolution regarding all aspects of the newsletter, from acceptable content to the extent of board control.

"Associations often get involved in a variety of policy issues over who has ultimate control--the board or the newsletter committee," said Smith. "This way you can establish who has control." Smith believes boards should have oversight control. Detailed editorial changes should be left to a Communications Committee. Instead, the board should look at the newsletter with a broader perspective, and determine if it is effectively informing the community. At Ken-Caryl, for example, a board member newspaper liaison reviews only those articles that staff thinks could be controversial--not to censor them, but to ensure that the facts are correct and that the board is aware of the article.

A newsletter policy should also address content. For example, will the newsletter cover political issues? Will it include letters? It is important to set these policies in advance, said Smith, before a problem arises. (See the sample policy on page 16.)

"Personalities change," said Smith. "A policy provides consistency."

The Right to Information

The need to print controversial or negative information depends on the association, the newsletter, and the specific situation. In some cases, the newsletter may not even be the best vehicle. In GAP 15, for example, Phagan writes that special notices are best for handling hot issues such as assessment increases and major repairs. Some associations may rely too heavily on the newsletter for their communications.

"I try to integrate all the available methods of sending and receiving information when I develop communication plans," Brown said. "If you rely solely on the newsletter, members get an incomplete picture, or some members may be missed altogether."

The important thing is that association members stay informed of community issues--both good and bad. That is the lesson of Val Vista Lakes.

"Every homeowner has the same right to information," said Roy Brown, the new executive director of Val Vista Lakes. "The board may have made the right decision, but did a poor job of communicating it. And sometimes communication is more important than the decision itself."

Newsletter Policies Reduce Publishing Problems

Does your association have a written policy? If not, here is a sample policy provided by New Jersey attorney Wendell A. Smith:

1. Priority will be given to items of significance to the majority of the association membership.

2. Legitimate controversies of interest to all resident will be reported objectively in a pro/con manner. Staff shall seek out diverse opinions and publish them with approval of the board.

3. Sources of information shall be verified, accuracy shall be established, fact shall be distinguished from rumor, and content shall not be colored by personal opinion.

4. The newsletter will not be used for expressing political views.

5. No libelous or inflammatory material shall be printed.

6. The newsletter must conform to the association's legal documents and to the policies of the board of directors. The board has the option of final review.

7. The newsletter will be published at a regular time each month.

8. All advertising account must be approved by the board. Advertisements shall be inoffensive.


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