Welcome to Ungated

Julie Adamen is well-known fixture in the community management profession.  A former manager herself, she now focuses her time on recruiting professional community managers, speaking on industry issues, and training managers and boards across the country.  Julie's monthly newsletter is always timely and provocative -- you will never be in doubt about how she thinks about a topic.

This month, her lead article focuses on why community management is a great industry to be in, especially right now as other portions of the real estate market wither to a shadow of their former selves.  I encourage you to give it a look. 

Julie rightly points out that our industry continues to grow, that it is fundamentally safe from outsourcing, and can be intellectually and personally challenging.  This certainly agrees with my observations, including the continued demand for experienced, trained community managers.  Existing communities must still be managed, perhaps more so now that foreclosures and falling sales prices have made being budget conscious even more important than ever.

Hard on the heels of the National Conference in Orlando next month, CAI will be holding its 21st Annual CEO-MC Retreat in Salt Lake City, Utah from June 19 - 21.  Designed as a unique once a year learning and networking experience for management company CEO's and senior management, the retreat is an opportunity to hone your leadership skills and learn what works and what doesn't in today's challenging association management environment.  The Retreat begins at noon on June 19 and ends around noon on Saturday June 21.

In addition to the Retreat, we will also be conducting our one-day CEO Bootcamp on June 18th from noon to 5pm.  If you are new to your company or your leadership position, the Bootcamp is a great way to familiarize yourself with the critical issues and management challenges you will face, understand the dynamics of our industry, and network with other company executives.

And for those of you who chase a little white ball around in the sunshine, we will once again be holding our annual CEO Open golf outing on June 18 and 19. 

All the information on times, dates, and costs is on the registration form.  (Note: the final costs for golf have not been determined yet.  Please indicate your interest on the form, any requested playing partners, and your handicap so that we can reserve you a tee time.  We will collect the golf fee at a later date.)

Don't forget that the "early bird" registration deadline for CAI's 57th National Conference is coming up on March 31st.  Register by the end of this month and save $50.

And we have just added two additional special events to the conference schedule.

I hope to see you in sunny Orlando.

CAI's Rocky Mountain Chapter has had a long history of leadership in the community in and around Denver, Colorado.  Recently, the chapter has been expanding their efforts to work with media outlets in Colorado to help educate board members and homeowners in associations throughout the state. 

In their most recent effort, Gary Debus, community manager of Highlands Ranch (one of the largest associations in the United States with over 90,000 residents) appeared on local ABC affiliate 7News to talk about resolving conflicts in your association.  Gary did a great job and clearly demonstrated the thoughtful, positive process that CAI works to bring to every situation like this.

Check out the Rocky Mountain Chapters homepage for other recent articles and media appearances.  And congratulations to the chapter and Gary for a job well done.

Come and share the magic!

CAI's 57th National Conference and Exposition is coming to Orlando, Florida from April 30 through May 3.  With programming designed for managers, association board members, and business partners alike, Conference is CAI's premier event of the year, bringing together all of our members to network, learn, and experience what makes good communities work.

You can check out the conference page, the full conference brochure, and the registration form online. 

Some of this years emerging topics include:

-  Immigration issues: Dealing with verification requirements

-  Licensing professional community managers

-  Green commuities: Find out how your community can reduce its environmental impact

In fact, our entire conference is going green this year. No more bulky handouts to lug around.  Copies of all the conference presentations will be available on the web before and during the conference and every attendee will receive a searchable CD-ROM of all the materials at registration.

Don't forget, register by March 31 and save $50 off the full registration price.  First time attendees can save an additional $50.  Not sure what the conference experience is all about, or if it is for you?  Check out our blog, Live From Las Vegas, which chronicled last years record-setting event at Caesars Palace in Las Vegas, NV.

And for those community managers looking to advance their professional skills and expertise, we are also offering a comprehensive slate of Professional Manager Development Program (PMDP) courses from the introductory M-100 through the PCAM Case Study in the days leading up to conference. 

A special thanks to our sponsors:

Platinum Partner

TOPS Software, LLC

Also co-sponsor of PCAM Reception

Speaker Sponsor

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Associa

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Gold Partner

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AmeriFlood





Community Archives, Inc.



Also sponsor of Leadership Break and CED Scholarship

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Events Sponsors

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Welcome Reception

Association Voice, LLC



Jenark



U.S. Lawns




PCAM Reception Co-Sponsor

The Flood Company




Managers Reception

Kevin Davis Insurance Services



Chapter Leadership Breakfast

Colonial Bank



Chapter Leadership Break

SouthData



Name Badges

dwellingLive, Inc.

Thanks again to all the sponsors and all the volunteers who make conference such a unique and valuable event.  I hope to see you there.

There have been a number of well publicized cases of financial malfeasance in the community association industry over the last year or so, some by managers and others by board members.  So what can an association do to protect themselves from this kind of risk? 

Attorney Kelly Richardson recently wrote an article for the Orange County (CA) Register outlining ten tips that associations can implement to increase the procedural and system controls over their funds, ensure appropriate spans of control, and reduce the risk of loss.  Among his recommendations are:

~ Review financial records regularly

~ Don't concentrate responsibility in a single set of hands, whether that is a board member or manager.  Require multiple signatures for checks and other material transactions.

~ Manage the overall risk through timely audits and reviews, as well as appropriate insurance coverage.

~ And always remember that as a board member you can delegate responsibility for some activities, but you cannot delegate ultimate accountability for performance.

I encourage you to take a look at Kelly's article.

Dealing with the process of drafting regulations or commenting on those drafts can be enough glaze over the eyes of even the most seasoned government affairs staff. But despite the painful process of pouring over page after page of detailed regulations, which can sometimes read like the phone book, the end results can and do have a direct impact on our communities. Most recently, the Federal Communications Commission (FCC) has determined it has the authority to regulate exclusive contracts for video services (e.g.- cable) provided to associations and other multi-family developments. In that same order the FCC also asked for comments on a proposal to regulate associations ability to use bulk service agreements to bargain for better prices. CAI has submitted extensive comments on both these issues and you can read them here.

The FCC’s proposals raise valid questions. Do exclusive agreements between providers of video services and associations help or hurt consumers? Should an association be banned from using the number of residents in the association as a tool to bargain with cable giants for better rates? And just as importantly, is the FCC authorized under existing law to expand its authority in these areas or is it required to get permission for expanding its authority from Congress?

As the voice of community associations, our job is to make sure that the FCC hears our side of the story and that’s something we will continue to do.  For more information on the current status of the FCC rulings and other hot legislative and regulatory topics from around the country check out our Political "Heads Up" page.

As I sit here in my office on a cold, sunny Alexandria day, I am watching as two small one-story office buildings across the street are being demolished to make way for a new multi-story mixed use project.  It's amazing that just three workers and a couple pieces of heavy equipment can make so much noise and reduce these buildings to rubble in just a single morning, taking apart buildings that took the cooperative efforts of dozens or even hundreds of workers and weeks to build: architects to craft the vision, engineers to design the structure, skilled craft workers to do the masonry, electrical, plumbing, and other systems, and many others who contributed to construct buildings that were a successful, thriving place of business and employment for many years.

I guess I see some ironic parallels in the community association industry. 

On the one hand we have literally millions of homeowners who are working to make their communities better places to live, serving on their boards, volunteering to staff events and activities, and building community each and every day.  Together with management companies, professional community managers, and the many other professionals who support communities across the country, they are the builders who are committed to protecting property values, ensuring that communities serve all of their members, and giving of themselves and their time.

On the other hand, we have the folks bent on making a lot of noise and tearing down the work of others, the individuals who believe that there is no good community association, that all boards are corrupt, and that if you are happy in your community you are at best a dupe and at worst an unindicted co-conspirator in the great community association conspiracy, a conspiracy that exists only in their minds.  Their goal is not to make communities better, their goal is to eliminate communities, to cripple them, and to turn every homeowner into a victim.  They do not have a prescription for improvement, unless you call total destruction a reasonable and thoughtful prescription.  Kind of like swatting a mosquito with a cruise missile. 

The best way to protect and serve homeowners is to arm them with information and knowledge, to educate them on their rights and responsibilities.  And that is what CAI and our members are all about.  Building community and consensus is not easy, but it is not something we can or should outsource to a far off State House. Successful communities are built by connecting neighbors, empowering them, informing them, and always, always communicating.  The siren call for greater regulation by the state, however alluring, can in the end result in disenfranchising homeowners, increasing costs, and eroding community values and sense of ownership.

So this vision outside my office window leads me to take a moment and express my heartfelt thanks to all of the CAI members out there who are the builders, to those who teach courses, participate in legislative initiatives, run youth programs, serve their communities, and work every day to build better and better communities.  You are the ones who are making a positive difference in our industry, you are the builders.  Just remember that it takes an awful lot of cooperative work by many dedicated, industrious people to fend off the efforts of the few who build nothing themselves, but seem to delight in tearing down the work of others.

Perhaps we should remember the wisdom of Theodore Roosevelt, who said "It behooves every man to remember that the work of the critic is of altogether secondary importance, and that in the end, progress is accomplished by the man who does things."

Despite CAI closing in on its 35th anniversary this year, we frequently hear from folks who don't understand our mission, aren't really sure who we represent, or want to know more about what we do and why we do it.  Herewith a recent, but typical, exchange between a writer and our VP of Communications, Frank Rathbun.

Last night provided a fascinating opportunity to observe the U.S. political process in action.  Despite lots of money, many talking heads, and more TV advertising than the Super Bowl, the Super Tuesday returns haven't settled anything.  What they have done is make it clear that the economy is issue #1 for the vast majority of Americans. 

Just as individuals are being crunched by tight credit, collapse of the subprime market, and flagging productivity, homeowners associations face similar challenges.  Because whether everyone agrees or even likes it, associations are businesses and association boards have a legal and ethical obligation to manage them in a business-like way.  That means ensuring that the associations assets are protected, that funds are collected and controlled appropriately, and that the interests of the entire association are served.

CAI past-president and current Dean of the College of Community Association Lawyers (CCAL), George Nowack, authored an interesting and thoughtful article in yesterdays Atlanta Journal Constitution.  I thought it clearly defined some of the challenges facing boards in this turbulent economy and provided a thoughtful and balanced approach for boards to carry out their fiduciary duty in an business-like but equitable way.  You might want to take a look.

I can remember watching Dragnet growing up and being impressed with Sgt. Joe Friday's focus on the facts of each and every case, down to the smallest detail.  Sometimes facts are tough to find in our industry.  That is why the Foundation for Community Association Research has undertaken a long term initiative to gather statistically valid, relevant data on homeowner opinions from across the country. 

Working with Zogby International, one of the most trusted polling organizations in the US, the Foundation sponsored a comprehensive survey of homeowner attitudes in 2005, which demonstrated that the vast majority of condo and HOA residents value their associations, are happy with their home choice, and believe their association boards and managers serve their interests effectively.  This followed, and reinforced, a similar study completed for the Foundation by the Gallup Organization in 2000.

Well, the Foundation and Zogby just completed a new survey using the same questions from 2005.  We wanted to see if attitudes, issues, and concerns were changing along with the changing real estate environment in the US.  And the results clearly demonstrate that the vast majority of Americans living in community associations continue to be satisfied with their homes, their leaders, and their associations. 

Some of the key findings from the survey include:

+ Homeowners overwhelmingly (88%) believe that their association boards are working to serve the best interests of the community.

+ A significant majority (73%) believe that their professional community managers provide support and value to the association.

+ A similar majority (74%) believe that association rules protect and enhance their property values vs. very small minority (3%) who believe rules harm values.

+ An even larger majority (77%) believe that they receive positive returns on the assessments that they pay to operate their associations.

+ Overwhelmingly (80%) they do not desire any further government intervention into their communities.

+++ Overall, more than 7 in 10 homeowners (72%) have a positive experience in their associations and less than 1 in 10 (9%) have a negative perception, with the remainder being neutral.

I think any of the vast multitude of candidates currently running for president would sacrifice body and soul for numbers like these.  Perhaps more important than the individual results, though, is that the findings support and reinforce the data collected by the Foundation in 2000 and 2005.  This consistency further strengthens the validity and robustness of this survey and the results.

So what does that mean for CAI and the Foundation.  Some would say that this is great and that our job here is done, but that is far from the case.  This data helps us understand our industry, identify areas for improvement, and continue our ongoing efforts to make good associations even better, to make weak ones stronger, and to make all associations even better places to live. 

So for the thousands of homeowners, board members, managers, and other who will attend a CAI education program in the coming year, you can be assured that we will be using this data to make our programs even more relevant and informative.  We will also be using the data to be sure to educate the media, legislators, and regulators regarding what is really going on in communities and the need (or lack thereof) for counterproductive government intervention.

And I am sure that I am going to get some comments and emails from those who don't believe the data, think that the survey was rigged, or some such similar rationalization.  All I can say is show us the data.  We have put our data and results out there, so show us yours.  Show us another national, statistically valid, and independently gathered data set with a different result--or any result for that matter. 

The fact is there aren't any because no one is spending the time, money, and effort on such a survey other than CAI and the Foundation.  Probably because they don't want to see and have to explain the results.  And please don't waste anyone's time with web polls, which say nothing, prove nothing, and are no more statistically valid or relevant than asking your dear old Aunt Rose how they did it in the 1930s when FDR was President.

CAI welcomes constructive conversation and dialog, even debate, but we see little value in anecdotal criticism that doesn't include practical solutions to bring greater contentment to the small minority of association residents who express dissatisfaction--practical solutions that also maintain or even raise the satisfaction levels of the vast majority who are already happy with their association.

Want to learn more and see the data for yourself?  Check out the press release, the survey summary, or the full survey report from Zogby on our web site. 

What makes communities work?  What makes them desirable places to live?  What brings out the best in individuals and communities?  The answer to all three questions is the same - people.  People who care about and for one another, who go the extra mile to help others, and want to make their communities even better.

The following article appeared in the January/February issue of Common Ground.  I am reprinting it here because I thought it spoke to what is best about communities.  Congratulations and thanks to Sharon Gregory, Jim Keen, and all the members of the Paseo del Sol Homeowners Association for remembering what community is all about and in particular remembering those who stand into harms way on our behalf.

HOLIDAY SENDOFF

When a group of Marines asked to rent their clubhouse for a Thanksgiving dinner, members of the Paseo del Sol Homeowners Association quickly waived the rental fee.  But the community in Temecula, Calif., didn’t stop at that. They soon had donations from 35 Southern California businesses and individuals to host a feast for 25 Marines and their families.

Many of the Marines were scheduled to be deployed to the Middle East in January. They are members of the 9^th Communications Battalion stationed at Camp Pendleton. “I told a couple of friends and they said ‘what can we do?’ The next thing we knew, we were up to 65 people,” says Sharon Gregory, a Paseo del Sol board member who helped organize the event.  “People just wanted to help. They wanted to do whatever it took.”

Some of the Marines were thousands of miles from home and couldn’t be with their families. Others brought their spouses and children. “They couldn’t get home for Thanksgiving. One couple just got married two weeks before,” Gregory says. Dinner included turkey, ham and stuffing. There was a piñata for the kids. A 72-inch television was installed temporarily—courtesy of a local electronics store—so the Marines could watch football games. A welcome banner was signed by all the volunteers, and the Marines planned to take it with them to display at their new camp.

The dinner helped build community spirit, says the volunteers.  “It helped people get to know each other better,” says Jim Keen, another organizer. “When you volunteer and do a good deed, you feel good yourself.”

Had a similar experience in your community - just click on the comments link and tell us about it.

With about 10 days to go until the 2008 CAI Law Seminar, we are expecting our largest and most successful event ever.  The College of Community Association Lawyers has put together a tremendous program and we have already received more than 450 475 registrations for the event. 

But don't worry, there is still room for more.  If you haven't registered yet you can do so on our Law Seminar web page.  It contains information about registration, event schedule, housing, transportation, and CLE credits.

And a special thank you to all of our sponsors for their generosity in helping us put on this event.

Community Association Banc

Collectronics Business Solutions, L.P.

Community Archives

First Bank

iColligo

McGowan & Company

NCB

Popular Association Banking

See you in Vegas.

I just wanted to take a minute to thank all the members of the CAI family, the more than 28,000 community association leaders and homeowners, professional community managers, and diverse business partner members, who make our organization and our industry vibrant and successful. 

We could not accomplish all that we do throughout the year without the active participation and leadership of our many volunteers, whether they are board members, faculty, sponsors, speakers or one of the many thousands who volunteer at the national and chapter levels.  The time, energy, and enthusiasm that you bring to our organization is what makes us successful.

On behalf of CAI's leadership and all of our staff let me wish you all a happy and safe holiday season and a successful and healthy New Year.

Tom

On November 13, 2007, the Federal Communications Commission (FCC) issued an order confirming an October announcement that the agency would ban the enforcement of exclusivity clauses in existing video service contracts. An exclusivity clause is a contract term giving a provider, usually a cable company, the exclusive right of access or the exclusive right to provide video service in a community.  The current order effects only video services, but the FCC noted that it may consider similar issues related to phone and broadband services in the future.

For many associations, such exclusivity rights have been part of the inducement to encourage cable suppliers to invest in the infrastructure to reach communities beyond their normal service area.  At the same time, many associations and homeowners feel constrained by long-term contracts, created by their developer, that outlive the development process.

You can find out more about this order and how it may effect your association or your clients on CAI's political and legislative "Heads Up" page.  We have prepared a brief overview of the order, along with some basic questions and answers. 

I am sure that there will be more to come on this issue.  Right now, it appears that a number of other organizations here in Washington will likely be filing a court challenge regarding the FCC's authority in this matter and may be seeking an injunction to prevent enforcement until such time as the legal battles are complete. 

What is most interesting about this situation is that the FCC looked at this issue under its previous chairman and concluded that it did not have the statutory authority to regulate this issue.  Under its current chairman, that opinion has changed and they have now concluded that they had the authority all along.  As a result, this may become a test and determination of the FCC's overall authority under the Telecommunications Act of 1996, which has the potential to have impacts well beyond the limited concerns regarding contract exclusivity.