Welcome to Ungated

In the most recent issue of Common Ground, Editor Chris Durso documents the emergence and growing visibility of self-styled “homeowner advocates” in his article Critical Mass.  These individuals, self-proclaimed representatives of a supposed widespread grass-roots anti-HOA movement, have a wide variety of issues, agendas, and expectations.  They range from reforming laws governing HOA’s, to creating strict government oversight and regulation, all the way to the complete abolition of the industry.

 

As Chris points out, many of these individuals bring well-thought out concerns and ideas to the table and are committed to helping make their associations better – even if they don’t like how they are run or who is doing the running.  Others though, hate (and I don’t think hate is too strong a word here) the very premise of associations, revolt at democracy at its most local form, and frequently can’t understand why the rules have to apply to them and not just to everyone else.  They resort to sweeping generalizations about the industry, engage in ad hominem attacks, and encourage a culture of victim-hood to the poor homeowners under the thrall of the big, bad associations.

 

Now back to reality for a moment. At CAI, our purpose is to help build responsible and effectively run associations.  But we also always remember that people are human and mistakes will be made.  As my mom reminds me to this day, you aren’t perfect and never will be – the same is true of our industry.  So,

 

• We are in support of reasonable laws and public policies that make HOA’s work better. 
• We are in support of education for everyone involved in the industry and of professional standards and expectations for those serving the industry. 
• We are in support of neighbors working together to make their communities better. 

And we spend our time, energy, and resources trying to make those things happen.

 

What we cannot support are situations that compromise the financial health and well-being of associations, place an undue regulatory burden and cost on associations, or treat associations differently than any other type of business entity.  Because that is what associations are - businesses.  They have assets and liabilities, governance and leaders, and shareholders/owners - just like Apple Computer or the local bakery.  They aren’t governments, they aren’t personal private clubs, and they certainly aren’t fascist states created to deprive poor, unsuspecting homeowners of their rights.  They are businesses that need to be run in a professional and business-like manner.

 

Another quick reality check.  It turns out that our vision and perception of the industry is the one that is actually exists out there in the real world among the majority of Americans.  A recent Zogby poll (sponsored by the Foundation for Community Association Research, a CAI-affiliated organization) indicates that the vast majority of Americans living in community associations are happy with their homes, their associations, and their neighbors – and don’t want additional governmental regulation of their communities.  You can see a summary of the poll results at:  http://www.caionline.org/about/survey.cfm .

 

I know that the “homeowner advocates” sneer at our data simply because it comes from us, but I have not once seen them put up the time, money, and effort to have a similar fairly-designed survey conducted by an independent polling service.  It is just too easy and cheap to cite anecdotal stories, make people feel like victims, and demand government regulation and oversight to address your personal pet peeve.

 

Back to reality again.  Our industry is filled with dedicated and hard-working individuals including:

 

·        More than a million homeowners who serve on their boards and committees as volunteers, giving of their own precious free time to make their communities better

·        Tens of thousands of professional community managers who have made a career of serving communities and believe in high standards of professionalism

·        Thousands of vendors - from attorneys to bankers to landscapers to painters - who serve our communities

 

I know that it bothers a lot of our members to hear criticism of our industry; it bothers me too.  What I try to remember is that true criticism is valuable, it is based on the open exchange of ideas, a willingness to consider other perspectives and an understanding that can help us grow and improve.  Criticism is healthy for any industry that takes itself seriously. 

 

The vindictive, hateful, and petty behavior that we sometimes see in some who style themselves “homeowner advocates” isn’t criticism, it is grandstanding, it is hate, and ultimately it is counter-productive to making communities better. 

 

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Because ultimately - with over 50 million Americans living in more than  275,000 associations in the United States, representing trillions of dollars of investment -  the community association industry is a vibrant, thriving part of our national economy and is here to stay.

The running joke in the industry is that the three P's, pets, pools, and parking, create the vast majority of issues between neighbors and within communities.  They are certainly not the only areas of contention, but they are definitely up there on the list.

So what can each of us do to be a better neighbor?  The next set of Pearls of Wisdom provide a top 10 list for Being A Good Neighbor.

11. Love thy neighbor

12. Respect thy neighbor

13. Curb thy dog (and scoop)

14. Don't play the stereo too loud

15. Park in your own space

16. Don't be a six-car family

17. Clean up after yourself

18. Take care of your property

19. Help form a neighborhood watch

20. If there is a problem, talk about it - direct conversation is more effective than sending a letter or banging on a wall

Actually many of these items remind me of Robert Fulgham's popular book, "All I Ever Really Needed To Know I Learned In Kindergarden".  Share, play fair, clean up after yourself, and say sorry when you hurt someone are all lessons we learn as children and somehow forget when we become adults. 

Here at CAI we frequently use the term "be reasonable".  And while there is always the possibility for reasonable people to differ, they can also almost always find a reasonable solution to any problem.

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"And it is still true, no matter how old you are, when you go out into the world, it is best to hold hands and stick together." (Robert Fulgham)

Back in 1993, CAI published a document called "Pearls of Wisdom - 116 Tips to Ensure a Happy Community Association Experience"  More than a decade later, most all of these items still ring true for homeowners, neighbors, board members, and managers. 

This is the first of a periodic series of blog items that reflect on these "Pearls of Wisdom" and the message that they have for us today. 

We begin with - Be A Good Homeowner:

1. Review the documents before you buy.

2. Read them again when you move in.

3. Pay your assessments.

4. Attend the annual meeting.

5. Read the newsletter and the minutes.

6. Follow the rules.

7. Serve on a committee.

8. Serve on the board.

9. Don't expect someone else to do it for you.

10. Remember that you are a member of the association.  What is good for it is good for you.

Not a bad top 10.  Make sure that you know what you are getting into, be informed, and participate.  Sounds like wise advice for a savvy consumer, whether investing in a home, stocks, an automobile, or anything else. 

Speaker of the House Tip O'Neil is famous for his quote that "all politics is local".  Well, a community association is as local as it can get.  Our institutions, be they government, corporate, religious, or fraternal, are only as good as their participants.  They can represent the best of us or the worst of us, it is our decision. 

The first step to having a well-run, harmonious, and effective community association is for the individual residents to decide that is what they want and to participate in making it so.

Next time: Being a good neighbor:

WOW!  What a conference.  If you weren't there, you missed the opportunity to join over 900 other CAI members for a memorable event in Palm Springs.  The hotel was fantastic, the weather beautiful, the education sessions enlightening, and most importantly there were many opportunities to see old friends and make new ones.  Want to see and hear more, check out the conference blog put together by dedicated staffers Chris Durso and Christie Chapman at http://cai.blogharbor.com/ .

More than 100 vendors participated in the well-attended exhibit hall and with the help of our generous sponsors, we were able to put on a fabulous event for our members.  Let me give one more quick thanks to our sponsors:

PLATINUM PARTNER

* U.S. Bank

 

GOLD PARTNERS

* Preferred Property Programs

* SmartStreet, a division of Flag Bank

 

SILVER PARTNER

* Resort Condominiums International, LLC

 

EVENT SPONSORS

* Associa -- Thursday keynote speaker

* Feinberg Grant Mayfield Kaneda & Litt, LLP -- Friday keynote speaker

* Kevin Davis Insurance Services -- managers reception

* The Flood Company -- PCAM reception

* Smart Street, a division of Flag Bank --

          >> Recruiter Club party

          >> CEO-MC/Large-Scale Community Managers lounge

          >> Chapter leadership breakfasts

          >> Chapter executive director scholarship

* SouthData, Inc. -- chapter leadership training afternoon breaks

* AssociationVoice, eReserves Systems, Jenark Business Systems Inc., and U.S. Lawns -- Welcome reception

 

Conference wouldn't be the same without their committment.

 

If you missed this years conference you missed a great one, but there is always next year.  We will be gathering again in Las Vegas, NV from April 25 - 28, 2007.  More information, including a registration form, is available at:  http://www.caionline.org/events/conference/ . 

This year we have added a new feature to our national conference, a conference blog.  Written by our own Chris Durso and Christie Chapman, the blog is designed to give you a taste of conference, help you plan your trip, and highlight some of the fabulous educational programs that will be available.  Chris and Christie have already begun publishing important information about the education tracks, keynote speakers, and fun stuff to do in Palm Springs.

If you are attending conference you definitely need to check it out to help plan your stay  and if you can't make it this year it will help you get a sense of what you are missing.

To check out the conference blog, go to http://cai.blogharbor.com/

See you all next week in Palm Springs.

It is hard to believe that our national conference is less than 3 weeks away.  Conference this year will be May 3 - 6 at the Westin Mission Hills Resort in Palm Springs, California.  Already more than 500 CAI members and guests have registered for this event.  You can learn more about conference and register at:  http://www.caionline.org/shop/conference/index.cfm .

This year we have a number of new education and networking opportunities at conference including a Welcome Reception on Wednesday evening, membership meetings for each of the Membership Representation Groups on Saturday, and expanded educational tracks throughout the conference.  And all of your old favorites will be there as well, including 2 inspirational general session speakers, a multitude of educational sessions, and a fantastic part under the stars on Friday evening.

I look forward to seeing many of you in Palm Springs the first week in May.

 

I just returned from a two day site visit to New Orleans and I had to put some thoughts down while they were fresh in my mind.  With our popular Law Seminar scheduled in the city in early 2007, we needed to ensure that the hospitality and conference facilities and resources in New Orleans were being repaired adequately and would be available to meet our members needs.  After many years of hard lessons, I have learned that the best way to know for sure is to go and see for yourself.  So that is what we did.  I have also uploaded some pictures that highlight what we saw.

If you get all your news from television (shame on you), then it would be easy to get the impression that New Orleans and the entire Gulf Coast continues to be a vast wasteland of gutted homes, FEMA trailers, and relief centers.  While there is truth to the pictures that TV brings into our homes, it is of course rarely the whole truth.  

Yes, there are vast sections of New Orleans that were severely flooded and thousands of homes that were severely damaged and even destroyed.  It will take many more months, and in some cases years, for all of these properties to be restored and rebuilt.  This may be the largest urban planning, design, and rebuilding project in the United States since the Reconstruction.  My heart aches for those who have lost family members, friends, and even their entire history. 

As you can see from the photos, many homes suffered tremendous, even catastrophic, damage.  What the pictures don't show is the frenzy of work that is going on, the buzz of chain saws, the pounding of hammers, and the rumble of dump trucks carrying away debris. 

They are actively rebuilding communities, and hopefully building an even greater sense of community than existed before.  Those of us in the community association industry appreciate that never-ending challenge.

But at the same time, there are also vast areas of the city that are up and running, including most all of the areas that the typical visitor would see and experience.  The French Quarter and central business district are open for business with the vast majority of hotels, restaurants, t-shirt shops, bars, and even the Lucky Dogs hot dog cart vendors back at work.  I have included a couple of photos from the French Quarter, which looks much the same as it did when I was there last winter.  Most recently, New Orleans staged a successful Mardi Gras celebration which set the stage for the city's rebirth in 2006.

What struck me most was the determination of the residents of New Orleans to make their city whole again.  They not only want to rebuild because that will enable tourism to resume and revenue to return to the city, but they want their families and friends to be able to return, they want their city to shine again - the passion that they feel for their city is palpable. 

Perhaps the things that encouraged me the most were the most mundane.  It was reassuring to see a parking enforcement officer working her way down Bourbon Street ticketing cars.  It was comforting to see the tarot card readers staking out the best locations on Jackson Square.  It was wonderful to hear the melange of languages and accents among the customers and waiters at Cafe du Monde.

That's the kind of thing you expect to see in a vibrant and lively city and I'm glad to see it back on the streets of NOLA.

Well, the NJ Court of Appeals has handed down its long-awaited decision in the Twin Rivers case - although it is far from the final act in this long-running drama.  For those of you who have not been following this case as it has wound its way through the NJ court system, the basic contention is that the Twin Rivers Community Association is not a corporation, but a government, and is thus subject to the limitations on governmental action defined in the NJ State Constitution related to freedom of expression, voting, rule-making, etc.

In its decision, the Appeals Court found for the plaintiffs on several issues, particularly related to freedom of expression, and for the association on several issues, including voting rights and rule-making.  For a quick summary of the decision, a copy of the full appellate court opinion, and some additional analysis by CAI members in NJ, you can check out:  http://www.caionline.org/govt/news/twin_rivers.cfm . 

Why is this important to those who live and work in associations?  First and foremost, associations are corporations just like Google and the local hardware store.  No court would ever find that Google is a governmental entity and subject to such constitutional restrictions.  Why should associations be treated any differently?  Second, treating an association as a government is not the path to efficiency and effectiveness.  The reality is that corporations are inherently more efficient than governments.  The law of unintended consequences would seem to indicate that making associations comply with governmental restrictions will raise costs, decrease efficiency, and lead to even more complaints about rising assessments and how funds are allocated.  Finally, how far should this go?  Will board members have to make their personal finances and backgrounds public, as do many elected officials?  Will we have the nation's partisan political atmosphere infect our associations?  Let's hope not.

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This is far from the last we will hear about this case.  The Appeals Court remanded the case back to the lower court for rehearing and there is still the potential for an appeal to the State Supreme Court on this and any future rulings. 

As they used to say in TV-land, don't touch that dial.

Recently, a blue ribbon advisory panel presented the President with a set of recommendations regarding revising the income tax in the United States.  While probably well researched and documented, (I don't think anyone would argue that our income tax system is perfect) one of the reports major recommendations has caught the attention of almost everyone, including me.  That is the proposal to eliminate the income tax deduction for mortgage interest on owner occupied homes.

While I am sure that some economists would be able to explain to us all why the mortgage interest deduction is not appropriate in creating a tax structure, what the committee fails to consider here is that they are not "creating" a new tax structure, they are "modifying" an existing one.  The one on which millions of families have based their most important and significant financial decision-making.

The fundamental truth is that the mortgage interest deduction has helped create a country with among the highest home-ownership rates in the world and changing the rules of the game at this point has the potential to create massive dislocation for individual families and our economy. 

The leverage that the deduction provides enables more families to buy their own home - to achieve part of the American dream.  Just as rising interest rates can slow home sales, the elimination of the deduction would reduce the activity in one of the most important segments of the economy.  The ripple effects through the economy could be staggering, affecting lenders, builders, supplies, and even the local governments who depend on new development and increasing home prices to fund ever increasing tax revenues.

I guess this is a bad idea whose time has, hopefully, not yet come.  Luckily for those of us paying taxes it doesn't appear that the idea has much traction here in D.C. and many of the strongest industry trade associations including the National Association of Realtors and National Association of Home Builders have taken strong positions against it.

CAI's 27th Annual Community Association Law Seminar will be held January 27 and 28 in Las Vegas, Nevada.  Over 400 attorneys and other industry leaders will be participating in this forum to explore future trends and practices in the law of homeowner and condominium associations and residential cooperatives.  To learn more about Law Seminar and how to attend please visit:  www.caionline.org/events/lawsem/ .

Covering everything from recent case law to community security and disaster planning, the Seminar is presended by CAI's College of Community Association Lawyers (CCAL).  CCAL acknowledges member attorneys who have distinguished themselves through contributions to the evolution or practice of community association law.  To learn more about CCAL and membership please visit:  www.caionline.org/ccal/index.cfm .  To view a searchable database of CCAL members by state visit: http://www.caionline.org/directory/nbccam_Search.cfm .

I am off later this week to attend the National Association of Home Builders - International Builders Show.  Several of our members will be conducting a joint presentation with NAHB members on transitioning a community from developer to homeowner control.  Effective transition practices can encourage cooperation between between the developer and homeowner, ensure continuity in the community, and reduce friction in the transition period.

This presentation is based on a best practices report that we completed in partnership with NAHB last year, which is just one of seven such reports available on the Foundation for Community Association Research web site at:  http://www.cairf.org/research/bp.html

Another year is upon us.  To all our members, please accept my best wishes for a happy, healthy, and prosperous New Year. 

CAI recently completed a nation-wide survey of community association residents to assess their satisfaction with their communities.  This survey demonstrated, once again, that the vast majority of Americans living in condominiums, homeowners associations, and co-ops are satisfied with their communities, are confident that their boards serve them well, and believe that expanded government regulation of associations is not needed.

Perhaps most strikingly, 71% of residents had positive opinions of their associations, while only 10% had negative perceptions.  The remaining 19% were ambivalent, neither positive or negative.

Conducted for CAI by Zogby International, the survey sampled homeowners from across the country and has a confidence interval of +- 3.5%.  You can see a more detailed abstract of the survey results at:  http://www.caionline.org/about/survey.cfm

National Community Leadership Forum - We are back in the office from another successful Leadership Forum, this year in Altanta, Georgia.  Special thanks to the Georgia Chapter for being such wonderful and generous hosts and to all of our members who attended.  Not surprisingly, much of the talk around the meeting was related to the horrendous hurricane season experienced on the Gulf Coast this year and how communities plan for and deal with such mega-challenges.

Future Conferences - Last fall, the CAI Board of Trustees approved changing from two national conferences per year to a single event.  I am pleased to announce that we have been able to expedite the implementation of this process and beginning in 2006 will host a single national conference.

For 2006, the CAI National Conference will convene in Palm Springs, California on May 4 - 6.  The primary conference hotel will be the Westin Mission Hills.  More information is available at  http://www.caionline.org/events/conference/index.cfm

I hope to see many of you there.

Since the 2003 hurricane season, CAI has been working to change a number of FEMA regulations regarding disaster recovery.  Perhaps most importantly, we have been working to change the rule that prevents FEMA reimbursement to community associations for removal of debris on roads and public areas in their communities. 

Under the current rules, FEMA provides reimbursement for roads maintained by governments, but not for clearing roads maintained by associations, even if they are public thoroughfares and necessary for the provision of emergency services.  Practically, this impacts public safety, and philosophically it is another example of community association taxpayers receiving a lower level of service from government.

Happily for those on the Gulf Coast, FEMA has suspended its rules on reimbursement for debris removal due to Katrina and Rita.  Community associations will be able to apply for reimbursement to clear their roads.  While that doesn't help all the victims of previous disasters, we hope that it indicates FEMA's direction on assisting community assocations and all citizens recover from disasters. 

CAI is continuing to work on legislation that will make these rule changes permanent.  You can read more about it at: http://www.caionline.org/news/detail.cfm?PRNumber=99100605