Different strokes, different folks: How community managers and property managers have distinct roles

A common mistake in state legislatures considering community association manager licensing—and among the general public—is to lump community association managers and property managers into the same bucket. While both are very important roles, they are distinctly different professions with functions, skill sets, and responsibilities specific to each.

A community association manager can manage every type of community: condominium associations, homeowner associations, resort communities, and commercial tenant associations. A community association manager works directly with property owners and homeowners.

Property managers oversee individual rental units or a group of rental units, such as an apartment complex. They’re responsible for managing the entire property, while community association managers are responsible for common areas—not individually owned properties.

“From a legislative standpoint, this incorrect categorization occurs because state legislators misunderstand the nature of community association management,” says Matthew Green, director of credentialing services for Community Association Managers International Certification Board (CAMICB). “They believe that community association management skills are identical to those of a property manager without recognizing the vastly different responsibilities of these two positions.”

This misunderstanding of the two professions often bleeds into more general conversations occurring in this space. Compounding this is the reality that there’s a slight overlap in a couple of the duties performed. For example, both property managers and community association managers supervise certain maintenance activities, such as swimming pool upkeep and trash removal. But it’s important to understand that community association managers oversee and direct all aspects of running the business operation. This means that they authorize payment for association services; develop budgets and present association financial reports to board members; direct the enforcement of restrictive covenants; perform site inspections; solicit, evaluate, and assist in insurance purchases; and even supervise the design and delivery of association recreational programs.

Property managers are responsible for managing the actual property and therefore handle the physical assets of the unit at the owner’s request. Property managers generally oversee rental units and leases. Their responsibilities might include finding or evicting tenants, collecting rent, and responding to tenant complaints or specific requests. If a property manager is responsible for a vacation or second home, he or she may arrange for services such as house-sitting or local sub-contracting necessary to maintain that property. Alternatively, an owner may opt to delegate specific tasks to a property manager and choose to handle other duties directly.

Stephanie Durner, CMCA, AMS, director of community management at River Landing, a gated golf course community in Wallace, N.C., views the distinction this way:

“While property managers are generally charged with overseeing physical structures that are used by people who are not the owners of the property, association managers represent the property owners themselves and are involved in just about every aspect of the overall community. For instance, if a garage door is broken at a rental house, the tenant would call a property manager or owner/landlord. But if there’s a pothole that needs repair or if a neighbor’s dog is running loose through the neighborhood, that’s a task for the community association manager who both maintains the common areas and upholds the governing rules. To me, community association management is a more holistic approach that contributes to the overall quality of life for all the owners in a community.”

Green emphasizes that while some job responsibilities are similar, community association managers have additional functions. “It’s critical that community association management be recognized as distinct from property management because association management requires a wider variety of knowledge and skills,” he says.

Because of these differences, community managers and property managers need different training and education.

CAMICB offers and maintains the Certified Manager of Community Associations (CMCA) credential, the only international certification program designed exclusively for managers of homeowner and condominium associations and cooperatives. The CMCA credential means an individual has taken and passed the rigorous CMCA examination, proving they have a solid understanding of the business operations involved in being a community association manager.

The post above originally was published on CAMICB’s CMCAcorner blog. Follow along for the latest on the essential credential for community managers.

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Snow way, Spot! How to keep your furry friends safe this season

Community association residents love their pets, so keeping them safe in the winter should be a top priority. Here are some ways you can ensure Fido and Felix stay warm, happy, and out of harm’s way even on the dreariest of winter days.

These paws were made for walking—to a point. Watch out for sidewalk salt. Pets’ paws are extremely sensitive, so prolonged exposure to sidewalk salt can be problematic. If you walk your dog regularly in areas where sidewalk salt is used during inclement weather, wipe the underside of paws with warm water and a clean towel when you go inside. Doing so also eliminates risk of ingestion if your pup licks its paws often. Keep an eye on your pet’s toe pads for severe dryness, cracking, or bleeding.

The weather outside is frightful. So bring your pets indoors. In the summer, when temperatures reach extreme highs, pets should be brought inside. The same is true for winter, when temperature reach extreme lows. This applies for daytime and nighttime. Remember, if you’re uncomfortable with the outside air temperature, chances are your pet is too.

Why don’t we bundle up, Buttercup. When pets do go outside during the winter, those with thinner fur coats may need extra warmth. Your local pet store should have an assortment of extra layers for your dog—even winter boots for pups who need extra paw protection from the cold and ice. Only add layers if your pet can truly benefit. If you’re unsure, consult your veterinarian.

All work sleep and no play makes Jack a dull boy. Keep your pets active throughout the winter. During inclement weather, when you can’t make it outside with your pup, set aside some extra time during the day to make sure they get some exercise—even 15 minutes of playtime helps. Paying attention to your pup keeps them engaged and happy, and ensures no bad behavior caused by boredom.

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Winter is coming: Prepare your home and community now

Winter doesn’t officially start until Dec. 21, but it’s already making its presence known in many areas across the country.

The cold and wet conditions of the season can wreak havoc on unprepared community associations and homeowners. Whether you’re waiting for Old Man Winter to make its first appearance or you’re already cleaning up from a pre-season storm, you should take steps to winterize your home and community now.

Follow the simple checklists below and tackle the most time-sensitive tasks:

Indoor winterizing

  • Examine doors and replace weather-stripping as needed
  • Examine window caulking and reseal where needed
  • Examine and repair vents where needed
  • Clean chimneys and flues
  • Remove items near heat vents
  • Place nonskid runners or door mats outside to help keep water, sand, and salt out of the house

Outdoor winterizing

  • Cut back tree branches and shrubs that hide signs or block light
  • Examine outdoor handrails and tighten if needed
  • Turn off electrical breakers for outdoor equipment
  • Close hose bibs
  • Clean out gutters and downspouts
  • Clear yard drains
  • Spray outdoor locks and hinges with lubricant
  • Stake driveway and walkway edges that may be difficult to find under deep snow

You and your community also should assemble, stockpile, or refresh the following supplies:

  • Batteries
  • Candles and matches
  • Ice melt and deicer
  • Sand
  • Snow shovels
  • Generator fuel
  • Antifreeze

For more information and resources about community association living, visit www.caionline.org.

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Hanging the stockings with care: Developing a holiday decoration policy that doesn’t turn into a lump of coal

With their celebrations, gifts, and good wishes, the holidays are a time to be thankful and festive. Often that means decorating your home, office, and even car. But in some community associations, a resident’s seemingly innocent act of holiday cheer can be interpreted as a malicious disregard for association rules.

How can your association avoid a dispute over holiday decorating? By considering both your residents’ rights to celebrate and your association’s ability to institute architectural guidelines that protect and enhance its aesthetic characteristics. Developing a policy doesn’t have to be a complicated or controversial process.

“Rather than adopt a rule under pressure, why not take the time to think it through before the need arises?” attorney Lucia Anna “Pia” Trigiani writes in her book, Reinventing the Rules: A Step-by-Step Guide for Being Reasonable. “Anticipating your association’s future needs and establishing rules for them now puts you in a proactive rather than reactive position.”

The rulemaking process should involve the entire community:

Committees. The responsibility of researching and drafting the initial policy may fall on the architectural or rules committee, which should poll the board as well as residents to discover their preferences.

Professionals. Consult with your community manager and attorney. These experts might know of other associations that have dealt with the same problem, and they also can help make sure your policy is consistent with your association’s governing documents as well as state and local laws.

Residents. After the committee has drafted the initial policy and the board has reviewed it, it’s time to go back to your residents for feedback. Distribute copies of the proposed language for everyone to review. If applicable, incorporate resident concerns and suggestions into the final policy.

As for how your association handles decorations on common areas, amenities, or community buildings, you might consider the following:

  • If your decorations include religious symbols, make sure that every religion is represented, so as not to alienate or upset anyone.
  • You don’t need to overdo the tinsel and plastic figurines. Sometimes less is more. It’s hard to pull off loads of decorations tastefully.
  • If your decorating plan includes draping outdoor trees with lights, be sure the lights don’t shine in anyone’s windows. Consult with your residents before you start stringing.

Whatever your community decides, don’t lose sight of what’s really important: celebrating the holiday season. This time of year offers great opportunities for your residents to get to know one another and become involved in association operations. It may seem like a lot of work for a bunch of lights and some tinsel, but developing and communicating a reasonable decorations policy can help avoid disputes and keep everyone in the holiday spirit.

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What to know before you buy in a community association

People choose to live in community associations for numerous reasons. Many owners value the inherent benefits of community associations, which are designed to manage common areas of the property, manage the property interests of owners, provide services for owners, and develop a sense of community through social activities and amenities. Yet community association living isn’t for everyone.

Do your due diligence by learning all you can about a community before you buy or rent a home in it.

First, ask your real estate agent to see copies of the governing documents, including the bylaws or Covenants, Conditions and Restrictions (sometimes referred to as CC&Rs).

Next, take the time to talk to people who live in the community. Find out how they feel not only about the neighborhood, but also about how the community is governed and managed. Ask to talk to the president of the association, members of the elected board, or the professional who manages the community.

Don’t forget to check out the common areas. Are the amenities—pools, tennis courts, and playgrounds—well-maintained? Is there ample parking?

You should be able to answer the following questions before you buy or rent:

  • How much are the assessments? When are payments due? How much are they likely to increase? What do they cover? What don’t they cover?
  • Does the community have a viable reserve fund for major projects in the future?
  • Are there renting restrictions?
  • Do the architectural guidelines suit your preferences?
  • What are the rules with respect to pets, flags, outside antennas, satellite dishes, clotheslines, fences, patios, and home-based businesses?

While assessments, rules, and regulations are important, don’t overlook other fundamental questions: Is it the right kind of community for you and your family? Does it fit your lifestyle and sense of community? Does it provide the amenities you want? Is it a good investment? The more you know in advance, the more likely you’ll enjoy your new home and community association.

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An unbiased, unfiltered guide to 2018 midterm election signs

Getty Images/Alexeys

The 2018 midterm elections are less than two weeks away, which means, of course, campaign signs are popping up like dandelions in yards and along roads.

These signs become a particular pain point for community associations every election season. Without fail, some communities end up on the evening news or in the local newspaper for attempting to enforce their covenants on signs.

We asked James A. Gustino, a community association attorney in Winter Garden, Fla., to provide some guidance on the subject. What should associations do about the signs? This is what he had to say:

Strict enforcement of association sign prohibitions, particularly as they relate to political signs on an owner’s property during the election season, is almost always unwise.

Check your state’s highest court rulings and the specific “freedom of speech” verbiage in your state’s constitution. Most federal and state courts currently don’t protect political signs from association enforcement. However, the New Jersey Supreme Court issued a pair of decisions in 2012 and 2014 protecting political speech. These opinions could influence other state courts considering similar legal issues in the future.

Covenants restricting signs often incorporate exceptions for security, developer, “for sale” and other board-approved signs. Under such circumstances, an association actively enforcing bans against political signs is unnecessarily exposing itself to charges of selective or arbitrary enforcement. When a ban on signs is universal but an association permits residents’ holiday decorations—another kind of speech—it also exposes itself to claims of selective or arbitrary enforcement. This nuance is often overlooked.

Practically speaking, political signs usually are posted for just a few weeks. By the time the typical association cycles through its standard three noncompliance notifications, the signs will likely have been removed.

Lastly, political beliefs and affiliations—like religious beliefs—tend to produce strong feelings that lead to costly and time-consuming litigation. Even if litigation isn’t the end result, is it sensible to pursue actions that invite unnecessary friction?

I recommend that my clients permit political signs but enact reasonable time, place, and manner restrictions. For example:

  • They can only be placed on the property for 45 days prior to an election
  • They must be removed within three days after the election
  • They cannot contain any profanity
  • They must be limited in number
  • They cannot create a sight obstruction or other safety concern.

I also advocate involving community members to help craft the association’s specific restrictions and then prominently posting (via email blasts, special notices on your website and at entry signs) the rules to encourage compliance.

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HOAs, BOTs, CC&Rs, and more: Defining community association terms

Today, 70 million Americans live in 344,500 common-interest communities. Even if you haven’t lived in a condo, co-op, or HOA, chances are you’ve at least heard of these communities. Admittedly, those who live in, volunteer in, and work for common-interest communities tend to throw around terms like “ARC,” “CC&Rs,” “D&O” or “CMCA” that make things sound more complicated than they really are. So let’s pull back the curtain on some important terms related to living in and working in community associations.

Types of communities

CA: Community Association

CID: Common-Interest Development

Co-op: Cooperative

Condo: Condominium

HOA: Homeowners Association

PD: Planned Development

POA: Property Owners Association

PUD: Planned Unit Development

TOA: Townhouse Owners Association

Community leadership, governance and operations

ARC: Architectural Review Committee

BOD: Board of Directors

BOT: Board of Trustees

CC&Rs: Covenants, Conditions and Restrictions

D&O: Directors & Officers liability insurance

E&O: Errors & Omissions insurance

RFP: Request for Proposal

SOP: Standard Operating Procedures

General CAI terms

CAI: Community Associations Institute

CAMICB: Community Association Manager International Certification Board, a sister organization to CAI.

FCAR: Foundation for Community Association Research, also a CAI affiliate

CCAL: College of Community Association Lawyers

LAC: Legislative Action Committee

PMDP: Professional Management Development Program

Designations, Certifications, and Accreditations
AAMC: Accredited Association Management Company

AMS: Association Management Specialist

CIRMS: Community Insurance & Risk Management Specialist

CMCA: Certified Manager of Community Associations

LSM: Large-Scale Manager

PCAM: Professional Community Association Manager

RS: Reserve Specialist

Whatever the acronym, all community associations—CA, condo, HOA, POA, TOA, etc.—share a few essential goals: preserving the nature and character of the community, providing services and amenities to residents, protecting property values and meeting the established expectations of owners.

Stumped by other acronyms or industry terms? Ask a question in the comments below.

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What do community associations look like in China?

Shanghai urban skyline, China

Picture this: A place where community associations aren’t legally able to have their own bank accounts, property management companies can retain ownership of common areas and rent them out without homeowners’ consent, and developers interfere with board elections because they are opposed to the formation of community associations. While this might seem improbable, situations like these occur frequently in China.

In the U.S., the community association housing model has become commonplace. According to the latest figures from the Foundation for Community Association Research, there are roughly 344,500 common-interest communities across the country. CAI has chapters throughout the world, including Canada, the Middle East, and South Africa, and relationships with housing officials in Australia, Spain, Saudi Arabia, and the United Kingdom. But how prevalent are community associations elsewhere in the world?

They’re a recent development in China, emerging shortly after housing reforms in the 1990s. Previously, urban housing was mainly provided by danwei, or place of employment. Danwei were organized by occupation and were both a physical space where people lived and a system whereby the government could regulate residents’ decisions and actions. With economic and political reform, this system largely became obsolete, leading to significant housing changes.

In response to property rights violations by developers and property management companies, community associations began to emerge. Developers have been faulted for failing to give homeowners their deeds and using them as collateral for loans, understating the area of the home, or not providing promised amenities. Unlike in the U.S., where community associations are usually formed by developers and membership occurs upon purchase of a home, associations in China are a grassroots effort spearheaded by residents to preserve their rights.

From a cultural and political perspective, community associations are novel in the single-party authoritarian regime that is the People’s Republic of China. In a 2008 dissertation by Feng Wang, at the time a Doctorate of Philosophy candidate at the University of Southern California, local governments often looked down upon associations as “an unstable social force that interrupts the establishment of a harmonious society.”

In China, a community association needs to form a preparatory group before it can officially establish—a difficult process. Residents need a representative from their developer and management company. Without their participation, local governments easily strike down the burgeoning association. The group also must meet a voting threshold for approval, and appeal to the management company or developer for a list of residents’ names and contact information to generate participation. Causing further complications, the initial vote is determined by property percentage. This gives developers an opportunity to vote to block its formation if they still own unsold units.

Despite the difficulty in forming and managing community associations, some have achieved commendable success in the country. In 1998 (before some important reforms), residents in one housing complex in China staged a coup and successfully disbanded their HOA after discovering that their management company had falsified a neighborhood mandate giving them permission to form the group. New leadership was voted in, and an HOA with community approved leadership was formed. The group was even able to successfully negotiate lower fees with the management company.

The residential conflict commonly reported in the media in community associations across the U.S. seems trivial compared to the conflict between developers, property managers, and homeowners in China. One might even wonder at the seeming lack of internal disputes among Chinese residents. In fact, according to a survey conducted by Wang, 92 percent of homeowners rate conflict among themselves as a serious issue, but only 25 percent of community associations focus efforts on addressing these issues. It is precisely because of the focus on exterior challenges, rather than internal conflict, that many community associations in China have flourished despite an unfavorable environment.

Through transparency, inclusion, and mobilization of homeowners in China, associations have made huge gains for the rights of residents. Whether in China or the U.S., community associations cannot lose sight of their goals: to elevate residents’ standard of living and protect property values.

Read more about homeowners association in China in the following:

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27 million reasons why a condo would ‘deconvert’

 Lake Michigan from the North Shore, Chicago

In a deal worth $27 million, Edgewater Beach condominium owners in Chicago plan to sell their lakefront building to Greenstone Property Group, a New York- based real estate investor that will convert its 188 units to apartments.

Almost 80 percent of unit owners accepted the offer in a vote over the summer. Under Illinois law, bulk con- dominium sales must be approved by 75 percent of unit owners. The sale is expected to close this year.

“I think owners were beginning to realize that if we don’t sell, we will be required to raise several special assessments to fund crucial deferred maintenance issues, many of which are not prepared for,” says Shawn Swift, president of the Surfside Condominiums board. “We felt it was important that all owners have the choice to decide the building’s fate collectively, rather than a board of directors’ decision to move forward with $3–$4 million in special assessments over the next two years.”

Owners will receive approximately 40–50 percent more on average for their units than if they were to sell on their own, explains Swift, and without the worry of paying hefty assessments in the future.

“We have also negotiated favorable leaseback terms for any owners who wish to stay in their units post-closing,” Swift adds. “The buyer will honor any cur- rent leases in place between an owner and their tenant. About half the building is currently being rented.”

The sale will be one of the largest condominium-to- apartment conversions—also known as deconversions—in the city’s history, according to the Chicago Tribune.

“Condominium deconversions became popular a few years ago because of the increased rental rates in Chicago,” says Patrick T. Costello, a shareholder at Keay & Costello law firm and a legislative liaison to CAI’s Illinois Chapter Legislative Action Committee.

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Why are common-interest communities so uncommon in the U.K.?

Big Ben, London

Community association living is widely popular in many areas of the world. In the U.S., for example, there are 70 million people living in 344,500 common-interest communities, one in eight live in a condominium in Canada, and three million Australians live in strata communities. Condominiums have taken off in Europe too, especially in France and Germany. However, one country remains a laggard in this trend: The United Kingdom. Despite legislation introduced in 2004 to jump-start condominiums— or commonholds as they are referred in the U.K—less than 20 have been developed.

The commonhold system was introduced to phase out the most popular form of housing in the UK: leasehold. In a leasehold arrangement, the buyer rents a flat from the freeholder, or landlord, for a specified number of years. The freeholder is responsible for managing and maintaining the common areas of the building, such as hallways, roofs, and facades. The lease is typically long-term—often as many as 120 years—but begins to decrease in value as the lease nears its end. Many individuals have taken issue with the leasehold system. Complaints range from burdensome fees imposed by landlords to the costliness of extending a lease and the fundamental nature of a leasehold as a wasting asset.

With all the complaints surrounding leaseholds, one might wonder why there’s a lack of enthusiasm for commonholds? In theory, self-management of commonholds removes conflict with the landlord, and ownership alleviates the ticking time bomb worry of a lease. The Law Commission, an entity responsible for reforming laws in the U.K., has a few ideas as to why commonholds remain so sparse.

Some potential issues affect homeowners. When changing from a leasehold to a commonhold, the law requires unanimous consent from every inhabitant 21 years or older, the freeholder, and every lender with a mortgage. Naturally, getting this many people informed, let alone on board with such a big change, is difficult. In addition, the commonhold association, the U.K. equivalent of a community association board, is a company under the current law. As such, leaseholders could face criminal penalties for violating the law. This standard is much too risky for any homeowner. Regulations also might be too stringent in some areas and overly flexible in others. For example, maintenance obligations are unchangeable regardless of age and price of the building, but on the other hand, fire insurance is the only type of insurance buildings are required to have, whereas other types of buildings require flooding and theft insurance.

Overall, commonhold’s failure to launch might simply be due to lack of a financial incentive for developers and a gap in public awareness over this type of housing. These types of large-scale transitions can be difficult and require public backing. However, the U.K.’s housing reform endeavors are an admirable effort to jump-start conversation between potential homebuyers, legislators, commonhold owners, and developers.

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