Welcome to Ungated

This year, CAI has created a new regional manager conference program designed to provide a forum for managers at all stages of their careers.  The Southwest Regional Conference is coming to Phoenix/Scottsdale on September 29th and 30th with programming that has been specifically selected to meet the needs of managers in Arizona, California, Nevada and the rest of the southwest.

Even better, due to the outstanding generosity of our platinum partners, we have reduced the price of attendance by $100 for the first 100 attendees.  With sessions addressing a wide variety of topics including leadership, human resources, effective meetings, and transition management, the conference promises to be a wealth of information.

Managers in the Southeast haven't been forgotten either.  Our Florida Regional Conference has been designed to meeting the needs of managers in Florida, Georgia, South Carolina and other southeastern states.  Coming to Orlando on November 9th and 10th, the conference will address a wide variety of topics including disaster planning, insurance issues, managing "green", and mediation tools and techniques.  Southeast managers are also eligible for the reduced registration rate courtesy of our platinum partners.

Not in the southwest or southeast?  Look for a regional manager conference coming your way next year.

Thanks again to our platinum partners for their outstanding generosity in supporting these events.

AssociationVoice

Banco Popular

Community Association Banc

Merlin Law Group

SenEarthCo

U.S. Bank

Making and Enforcing the Rules Fairly

Rules are part of the contract between each homeowner in a community and their neighbors.  The Board's responsibility it to interpret and apply the rules fairly and reasonably.  In most cases, conflicts over rules come in one of two varieties.  First, there are those individuals who don't believe that the rules should apply to them, but should apply to everyone else.  Second, there are those boards and communities who apply the rules inconsistently, creating confusion and hard feelings.

A final challenge is the changing nature of the community.  As communities change over time the rules need to be regularly reviewed and revised.  For example, what started out as a community of young families can become more empty-nest oriented in a few short years.

Some helpful hints on enforcing the rules:

71. Give residents a voice when creating a rule.

72. Make rules specific and reasonable.

73. Communicate the rules.

74. Review the rules - new ones may be needed, old ones may need to be discarded.

75. Make the first contact with violators informal, if possible.

76. Never "look the other way".

77. Offer compromises.

78. Hold a hearing.

79. Try arbitration or mediation if things get tough.

80. Hold public meetings on divisive rules.

CAI has several publications that can help with assessing, changing, and enforcing your rules.

Be Reasonable: How Community Associations Can Enforce Rules Without Antagonizing Residents, Going to Court or Starting World War III.

Reinventing the Rules: A Step-By-Step Guide for Being Reasonable

Drafting Rules How Community Associations Maintain Peace & Harmony

I am proud to announce that as of August 31, 2006 CAI has broken the 28,000 member level - 28,074 to be exact.  Since our restructuring of membership in July 2005, we have increased overall CAI membership by more than 10%. 

This growth reflects the continued robustness of our industry, the increased need for education among volunteer board members responsible for ever more complex associations, and the recognition of the profession of community management as a unique, challenging, and rewarding field.

A special thanks to all our Recruiter Club members, who are responsible for many of the new members joining CAI.

CAI and NBC-CAM, along with many other organizations, have partnered with the Department of Homeland Security to promote National Preparedness Month.  As we have all learned too well over the past several years, no part of the country is immune from unexpected disaster - whether natural or man-made.  As we recall the first anniversary of Hurricane Katrina and the fifth anniversary of the attacks of 9/11, it is clear that every community and every family needs to think about and plan for the unexpected.

It can be a simple as a family emergency contact plan to locate loved ones in time of crisis, to as detailed as a community-wide disaster response plan integrated with city and county resources, but it is imperative that we all plan and prepare for the worst-case. 

As the number and size of community associations across the country continues to grow, it is important that preparedness become a required component of an effectively managed community.  If you haven't already done so, now is the time to have a conversation with your community, your board, and your manager about how well prepared your community is and to ask what you can do to be part of the solution.

Developing a successful budget. 

No task is more important and more maligned in any organization than the development of the budget.  What can seem like a tedious annual chore is actually the blueprint for the commitment of organization resources to priorities and programs.  Effective budget development requires not only an understanding of the numbers, but also an even deeper understanding of the goals, objectives, and even expectations of all the residents of a community.  Some tips for building a successful budget (and ultimately a successful community).

61. Obtain input from owners, board members, committees, and management.

62. Conduct research to ensure the budget is accurate.

63. Develop a month-by-month evaluation - don't just divide by 12.

64. Talk with contractors to estimate costs.

65. Be realistic.

66. Raise assessments if necessary.

67. Be straightforward about it - don't use gimmicks or emotional appeals.

68. Plan for the future.

69. Look for ways to cut expenses, but don't reduce the level or quality of services without telling the owners.

70. Communicate the budget to members. (Ah, that rascal communications again)

I frequently hear board members claim with pride that they haven't raised their community's assessments in years.  I really worry about communities like this.  What product or service has not become more expensive in the past two, five, or ten years.  If you are not raising assessments - at least to cover inflation - you are not preserving and protecting your community and you are not serving your constituents.

Community associations continue to grow and thrive across the U.S.  According to our latest estimates over 56 million Americans live in over 285,000 condominiums, homeowner associations, co-ops, and other community living arrangements nation-wide, with 8,000 to 10,000 new communities being built each year.

Community associations offer a wide variety of benefits that vary from community to community, including amenities such as golf; tennis courts; and aquatic facilities, along with reduced maintenance requirements, and more consistent property values.  In many areas of the country, community associations also represent some of the best lower income housing opportunities.

But regardless of where you live or what type of home you are considering - you need to be an educated consumer in order to make a purchase decision that is right for you and your family.  While some states have very comprehensive disclosure laws regarding the information a seller must disclose to a buyer regarding a home in a community association, other states have very limited or no such requirements.  That is why buyers must know what questions to ask of their Realtor and the seller before signing on the dotted line.

That is why CAI has put together "Community Matters - What You Should Know Before You Buy".  This free brochure highlights some of the unique aspects of living in a community association and identifies some of the key questions that prospective buyers should be asking, such as:

How much are assessments and when are they due?

What is the annual budget and how does it compare to similar communities?

Does the community have a viable reserve to fund major, long-term maintenance and repairs?

---

Download your free copy today and help make yourself a more informed consumer.

Yesterday, President Bush signed into law the Freedom to Display the American Flag Act of 2005 (H.R. 42).  Introduced by Representative Roscoe Bartlett (Maryland), the bill is directly based on CAI's long-standing public policy regarding the American flag. 

Key elements of the bill include prohibiting associations from banning the display of the American flag, requiring flags to be displayed in compliance with the U.S. Flag Code, and permitting associations to put in place reasonable restrictions on the time, place, and manner in which flags are displayed. 

You can check out a more detailed summary on our web site. 

It is interesting to note that the bill applies only to the American flag and it reinforces the position that associations are businesses and subject to the business judgment rule, since it empowers associations to place restrictions on where, when, and how flags are displayed in their communities.

As many in the industry already know, flag issues crop up from time to time and are almost always related to how a flag is displayed and not to the actual display of the flag itself:  20 foot flagpoles in townhouse yards; 20 x 10 foot flags that snap like cannon fire; flags displayed disrespectfully and flags illuminated with mega-watts of light all night long are just some of the things that can cause controversy in communities.

As always, it is all about communicating what is acceptable and what is not, ensuring the rules reflect the nature of the entire community, and being a considerate neighbor.

 

As the community associations industry continues to grow, it has created tremendous career opportunities in a wide variety of fields.  Most notable is the profession of community management.  Every week I get calls from owners of community management companies asking if I know of anyone looking for work who would like to relocate to their city or town.  At our CEO-MC retreat last month, hiring and retaining skilled staff was the principle topic of conversation among the attendees.

The demand for professional community managers has never been stronger, and shows no signs of weakening.  Even as housing starts soften somewhat, all of the existing communities and those in development still need effective management and opportunities for growth and advancement are plentiful.

So what makes a good manager?  I think first and foremost, you must be an effective communicator.  You must be able to interact with a wide variety of individuals including board members, homeowners, and vendors.  In addition, some basic skills and knowledge in finance, project and contract management, human resources, and technology can help as well.  While a college degree is valuable, it is certainly not required.

To learn more about a career in professional community management you can check out our Career Center at:  http://www.caionline.org/career/index.cfm .  CAI offers a comprehensive education and professional designation program to help prepare you for a career in this growing field.

 

Working With Committees

In any organization, the active and effective participation of committees is vital to overall success.  Just look at the US Congress and the Enron Audit Committee if you don't believe me.  How can you get the most out of your committee activities and your volunteers valuable time.

51. Define the committee's purpose.

52. Support the committee members.

53. Keep in touch with them (that crazy communications thing again).

54. Seek their opinion.

55. Ensure that they follow the rules of parliamentary procedures.

56. Give them objectives (or they will surely come up with their own).

57. Give them deadlines.

58. Remember - the committee usually offers recommendations, not solutions.

59. Offer them love, praise, and acceptance.

60. Reward them.

Remember also that your committees are the development process for your next generation of leaders.  Giving new volunteers opportunities to participate in committees can help you identify and grow future board members.

We recently successfully completed our annual retreat for management company CEO's.  Held this year in Santa Monica, California, the retreat brought together over 170 senior leaders from community association management companies across the country.  This years program focused on conducting an internal audit of your organization with sessions on human resources, risk management, technology, and financial management among others.  The retreat is a great opportunity for management companies to share ideas and perspectives, learn new skills, and hear from experts on critical issues facing our industry.

One of the most interesting themes that emerged from this years event was the challenge many management companies are having in hiring and retaining skilled staff.  The continued growth in our industry has resulted in an ever increasing demand for skilled managers.  For individuals currently in the industry, the potential for growth, advancement, and relocation has never been great.  And for those looking for a career, community management provides a tremendous opportunity to get in on the ground floor and advance quickly.

How to have productive meetings.

Humans are social animals.  We work best and most comfortably in groups.  Perhaps that is why the meeting has become all-time most popular activity in business.  But getting value out of meetings can sometimes be tough.  Here are 10 ways that you can help turn your meeting into a productive and thoughtful activity and not just another opportunity to kill off a box of Krispy Kreme donuts, not that there is anything wrong with Krispy Kremes.

41. Distribute materials - financial reports, agendas, bids - to board members a few days before the meeting.

42. Study this material.

43. Prepare an agenda.

44. Follow it.

45. Follow the rules of parliamentary procedure.

46. Act professional - don't let the meeting turn into a social event.

47. Don't serve alcohol.

48. Don't call people names.

49. Open the meeting to other owners.

50. Allow questions at the end of the meeting.

Gee, effective communications and the golden rule, what a revelation.

I know that every one of the more than 50 million homeowners living in community associations wants their community to be successful, harmonious, and peaceful all the time, whether they are a CAI member or not.  Okay, maybe I am being a little sarcastic for effect, but the truth is that it is hard work to make an organization successful and it is very easy to help make it dysfunctional.

Following are 10 ways that any organization, including your association, can be harmed by the behavior of its members - intentionally or inadvertently.

A. Stay away from meetings.  Show up at meetings only if you have a problem or complaint.

B. Decline office or appointment to any committee.  Then, get angry if you are not nominated.

C. Insist on describing the association in negative terms only.

D. Never prepare an agenda, never plan the details of an event, and never coordinate with affiliates. 

E. Don't do any association work if you can avoid it.  Then, when the old reliables pitch in and get the job done, accuse them of being a clique.

F. If you do come to a meeting, don't speak until the meeting is finished.  Then, criticize and say how things should have been handled.

G. Oppose all new programs as being a waste of the membership's money.

H. When nothing new happens, complain that the officers lack imagination.

I. Read your bulletins infrequently.  Then, complain that you don't know what is going on.

J. Never introduce yourself to new members or visitors - make them come to you.

By John E. Matheson, Board Briefs May/June 1992

---

I am sure that you have a couple of items that you can add to this list.  Feel free to do so in the comments section.

CAI provides a wide variety of products and services to our members and non-members alike.  One of the frustrating things that I have discovered over the years is that frequently people (including long-time members) are not aware of some of these valuable resources.  So in an effort to highlight some of these less visible programs, I thought I would do an occasional entry focused on a particular benefit or service.

As part of our education programming for association leaders and homeowners we have developed a multi-level education structure that includes self-study, web-based, and classroom instruction.  You can learn more about this comprehensive program on our Homeowner Education page. 

While some of these programs are member benefits, the introductory self-study program is available as a free download from our website.  Called An Introduction To Community Association Living , this self study guide is designed to introduce homeowners to community associations, provide a greater understanding of exactly how a community association works from both an organizational and people standpoint, and to endow homeowners with the information necessary for fully enjoying and benefiting from community association living.  The document is downloaded as a PDF file and requires the Adobe Acrobat Reader to view and print. 

We encourage you to share this material with everyone in your community.  Feel free to copy and distribute it as you see fit, as long as no changes are made to the document and you do not charge for it.  We hope that you find it useful and would appreciate any comments you might have towards making it even better.

 

On Being a Good Leader

Volumes have been written about leadership and the skills and capabilities of good leaders.  No matter who your role models in this area, Washington, Roosevelt (Franklin or Teddy), Jobs, or Lombardi, an effective leader can help an organization achieve higher levels of performance.

So what makes a good leader in a community association?  As in any community organization, the ideal leader ascribes to the volunteer servant model, giving freely of their time to better their community.  Today, over 1 million Americans serve as volunteers board and committee members in their communities. 

Top 10 Tips for Being a Good Leader

31. Establish clear goals.

32. Articulate them. (There's that communications thing again)

33. Don't put things off.

34. Set high standards.

35. Make decisions.

36. Do what is right, not what is popular.

37. Be positive.

38. Ask others for input.

39. Plan and save for the future.

40. Send thank you notes.

 

Talk about a thankless job - being a board member in your community has got to be up there with the all-time most unappreciated experiences you can imagine.  You can't get members to read materials or come to meetings, but they think you shouldn't make a move without consulting them, lots of time spent at late meetings and answering even later phone calls, needing to learn a whole new business - its no wonder that many boards have difficulty filling vacancies and then hanging on to volunteers once they have been brought up to speed.

Yet it is also a critical job, and one that can bring great value (or great turmoil) to a community.  Herewith, a top ten list of tips for Being a Good Board member.

21. Serve because you care, not because you have a hidden agenda.

22. Educate yourself.  Use CAI courses and other information to learn how to run a community association.

23. Study the documents before you enforce them.

24. Don't go on a power trip.

25. Remember your fiduciary duty is to protect, preserve, and enhance the value of the property.

26. Conduct a reserve study.

27. Let the manager manage.

28. Focus on policies, plans, and objectives.

29. Communicate, communicate, communicate.

30. Communicate some more.

 

We are going to try a new experiment with the blog this summer.  We have turned on the comments feature to allow you the reader to add your thoughts and perspectives to the blog content.  At the bottom of each blog entry there is a "Leave Comment" option.  You will be asked to input some information, including a random code to prevent spam from hitting the comment area, along with the text of your comment.

All comments will be reviewed for appropriateness before posting to the Ungated article page.  The blog software does not have the ability to edit comments, and frankly I don't have any interest in doing so either, so what you type is what you get.  Please note though that I can and will delete postings that don't comply with 3 very basic rules.

1. Stay on topic - Please ensure that your comments have at least some relevance to the particular blog entry you are commenting on.

2. Be civil - I am interested in different ideas and perspectives, regardless of the source, but comments that contain personal attacks, threats, and uncivil language will be deleted out of hand. 

3. Be responsible for your words - If you have something to say then you should be willing to stand behind it.  Anonymous comments lack power.  If you want to rant and howl at the moon do it in your shower.  If you want to engage in a more broad and reasonable conversation please do so here.

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. 

 

---

 

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.

---

"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)