California’s more than 51,000 HOAs are home to at least 36% of California’s population, according to the Foundation for Community Association Research’s 2024 Factbook.
That figure continues to grow as developers and municipalities generally favor the use of common interest developments, or HOAs, for new housing projects.
This column is my 801st since starting in May 2005. So one might ask, what is the need? Here are eight ways the column still seeks to help HOAs and their members.
—Increase education and information to the real estate owning public. While organizations such as the Community Association Institute (CAI) and the Executive Council of Homeowners (ECHO) are very active in California; unfortunately, most owners do not avail themselves of their educational offerings. This leaves vendors or other special interest groups a platform to inform, or misinform, homeowners.
—Elevate HOA governance – in competency, reasonableness, and ethics. HOA owners deserve the best volunteer governance. Unfortunately, there is no education or competency requirement to serve on HOA boards – no matter how large the HOA. HOAs can impose only a very few minimal eligibility requirements. Requirements that the candidate has read the governing documents, has no legal disputes against the HOA, or has any HOA governance education, are not among the permitted requirements.
—Provide information for professional managers. Because California managers are not licensed, there are no reliable statistics on exactly how many professional managers serve HOAs. Many HOAs lack professional managers, relying often instead upon unqualified volunteers. Hopefully, the column helps professional managers by supplementing CAI and the California Association of Community Managers (CACM) manager education, while demonstrating to HOA boards the critical importance of competent and ethical professional management.
—Encourage a cultural shift towards appreciation of shared ownership. Americans are very independent, resisting authority and interdependence. However, interdependence and cooperation foster more effective and positive HOA communities. Those who lack these qualities can make HOA life undesirable for those who resist the reduction of independence in exchange for benefits HOAs provide.
—Promote neighborly behavior and tolerance within associations. The greatest rule of all – the “Golden Rule” – also applies to HOAs. It’s important to remind ourselves to treat others as we want to be treated – treating neighbors with respect, running respectful meetings, and handling disagreements respectfully.
—Promote conflict resolution and especially avoidance of legal disputes. Internal dispute resolution is a valuable tool to derail conflict. Lawsuits between neighbors should be avoided if reasonably possible. They not only sap the finances of the participants, but the residue of hostility and division can haunt a community for many years. Keeping legal counsel informed is important, but it’s often better to delay getting counsel involved in the discussion – sometimes premature threat letters from counsel escalate conflict too quickly.
—Educate the Legislature. HOAs come in many forms and sizes. Legislators need to understand that a law may not work for a 4-unit HOAs the same as 400-home associations. Their abilities, resources, and challenges are completely different.
—Work toward increasing awareness of the need for a credential in HOA knowledge from the California Association of Realtors® or National Association of Realtors, so Realtors can better advise homebuyers.
Thanks for reading the column for some part of these past 800 articles. Let me know if any of these priorities resonate with you also.
Richardson Esq. is a fellow of the College of Community Association Lawyers and partner of Richardson Ober LLP, a California law firm known for community association advice. Submit column questions to kelly@roattorneys.com.