CAI Survey: Association Boards and Managers Are Optimistic

Community Associations Institute's Press Release 

Sept. 11, 2014—The national economy and housing market are improving—however slowly—and that means things are looking up for most associations, which is welcome relief to many communities that weathered some difficult years.

While some associations continue to feel the pinch, almost 90% of community managers and board members say their association’s overall financial health is "excellent" or "good," with 10% saying "fair" and only about 2% indicating "poor" financial health.

 The results are based on responses from almost 1,000 community managers and association board members who completed CAI's 2014 State of Associations Survey.*

 Looking ahead, almost 55% of managers and board members see their association’s financial condition being “much” or "slightly" better in the next five years, while about 42% expect little change. Less than 4% anticipate a turn for the worse in the next five years.

"Like the country as a whole, many associations experienced especially difficult challenges during the downturn," says CAI Chief Executive Officer Thomas Skiba, CAE. "This survey affirms that most associations are better off today, and it’s reassuring to know that most managers and board members express optimism about the next few years. Nobody can predict the future with certainty, but that’s a very positive economic indicator for associations and the professionals who support them."

Assessments and Delinquencies

Almost 40% of associations did not increase assessments during the most recent budgetary cycle. Of those that did raise assessments, 33% of respondents say assessments increased 1 to 3%, while 17% report a 4 to 6% hike, 7% a 7 to 10% increase and 4% an increase of 10% or more. About 13% of associations levied a special assessment during the previous 12 months.

Most managers and board members are confident their homeowners believe they are getting a good value for their assessment dollars, with 26% "overwhelmingly" satisfied, 60% "for the most part" satisfied and 10% "somewhat" satisfied. Almost 5% acknowledge their members are "not really" satisfied with the value they are getting for their assessments.

Understanding that rates of assessment delinquency often reflect the health of a local economy and housing market, respondents were asked the percentage of owners who are behind on their payments to the association. About 81% of respondents say their delinquency rate is 6% or less, with three quarters of those in the 0 to 3% range. About 15% peg the delinquency rate at 7 to 15%, with 4% saying it’s more than 15%.

Asked if their associations pursue delinquencies differently than before the mortgage foreclosure crisis and economic downturn, 44% say they are now "much" or "somewhat" more aggressive, with a near-even split between the two. Almost 55% say their collection policies and approaches have remained largely consistent, while less than 2% say their associations have become less aggressive.

Reserve Funding

Encouragingly, almost 70% of association managers and board members believe their associations are setting aside sufficient funds for future repairs and replacements. The remaining 30% do not believe their communities have sufficient reserves.

"Although 70% is a good number, most community association experts would be concerned that almost three in 10 associations have under-funded reserves," Skiba says. "We strongly encourage associations to budget with a sharp eye toward the future. It’s not easy making choices between immediate and long-term needs, but those bills will become due eventually."

The survey shows that almost 75% of associations base their reserve funding on a formal study or updates conducted by a professional reserve specialist; 25% do not use a reserve specialist.

Leadership Performance

Most community managers and association board members believe their residents are satisfied with the performance of the association leadership team. Almost half of respondents believe 80% or more of their residents are satisfied, while about a third estimate their approval rate at 60 to 80%. About 20% peg their approval rating at less than 60% of residents. According to a March-April 2014 national survey of community association residents conducted for the Foundation for Community Association Research, 90% of association residents rate their overall experience as positive (64%) or neutral (26%).

 

Leading Challenges

Community associations face a number of challenges, but resident apathy is rated the "most serious" issue for almost a third of the associations represented in the survey—higher than any other issue.

 "While community leaders rightfully seek more volunteers and greater owner participation, I don’t think apathy is necessarily an indication of poor management or owner discontent," Skiba says. "A lack of interest can mean that residents are largely satisfied with how the association is being managed and don’t feel the need to get involved."

The following are the percentages of managers and board members who rated issues as "very" or "somewhat" serious:

·        31% Resident apathy

·        20% Renters and rental-related issues

·        18% Rules enforcement

·        15% Insufficient money to do what is needed

·        13% Deteriorating common elements

·        13% Community appearance and curb appeal

·        12% Assessment delinquencies

·        12% Issues related to aging residents

·        5% Resident discontent

See survey PDF. 

 

Fire Safety Tips for Your Abode

Every homeowner wants to protect his or her residence and family members from the dangers of an unexpected blaze. Considering the number of deaths that occur each year due tohousehold fires, equipping your house against a fire is probably the best way to get rid of the fear.

If you want to make your home fireproof, here are some tips that can help you out:

In the Kitchen

No matter what the time of year it may be, you cook and bake in your kitchen on a daily basis, and being hasty in this environment can lead to a residential fire. When cooking, you should never:

- Leave the stove on while you are absent from the kitchen. If you sleepy or in need of rest, turn off the burner and take a nap so that you can resume cooking again once you are well rested and alert.

- Overcook your food, as it can also lead to fires. When you are cooking on the stove, set a timer to alert you regarding the right time when you have to take the food off the stove. When you are using your oven, microwave or even other cooking appliance that does not have a timer, set one inyour cell phone, tablet or alarm clock so that you will knowwhen to go and check on your food.

- Keep cloth rags need a stove. All kinds of fabrics, wood, paper, and plastic are flammable. Keeping these items neara flame or a hot and active stove can result in their catching fire, which may spread out across your residence.

While Lighting Candles

Candles can bring a romantic ambiance and a soft glow to your home, but they can also be deadly, especially when a burningcandle is left unattended, and causes other objects to burn in its proximity. As a rule:

- Always blow out the candles in your home before you go to sleep at night or every time you leave your home.

- Place your candles in an area where all other objects are at a foot’s distance from it.

- Never keep your candles on the surface without using a candleholder and ensure that the holder is firmly placed on a stable, straight, and smooth surface.

- Do not use candles in a home where oxygen tanks are available.

- Prefer to use flashlights in cases of power outages in place of candles.

When Heating Your Home

During the winter months, most homes utilize heating systems tokeep their interiors warm and cozy. However, using portableheaters can be a fire hazard if care is not taken. Use the following tips to secure your home:

- Do not place any item that may burn or melt within three feet of your heater.Do not operate these heaters for an extended period, such as leaving them activated all day or all night.

- Keep your children and pets away from the heater.

- Follow the instruction given on the heater to the letter to ensure that it is operated with safety.

Aside from all of these tips, install fire alarms in your home and maintain them twice a year for additional safety. You can also devise an escape route to exit your home in an emergency and purchase a fire extinguisher to take care of small fires on your own.

For more information consult with your security advisor(s) or your local fire department.

How to Organize a Pool Party

How to Organize a Pool Party

Summer parties are a great way to enjoy time with friends and family. If you want to organize a party this summer, then opt for a pool party, as they are easy to organize and loads of fun. However, as with every party, you need to consider a number of things before being ready for the party. Below is a list of things you need to do to organize your very own pool party for the summer:

1.     Find a Pool

If you have a private pool, there can be nothing better. However, if not, then you will need to rent a pool at the local community club or a hotel.

2.     Decide the Date for the Event

When will you host your event? Is your birthday coming in the summer? Do you want to meet up with your friends during your summer holidays? Pick a date for the event as soon as possible, as your invitations and other preparations will be made accordingly.

3.     Make a Guest List

Are you only hosting a party for a few selected friends or a large bash? Create your guest list so that you will have an estimate on the number of people coming to the event.

4.     Create the Invites

You can either print your invites on your own or make your invites by hands. Alternatively, you can hire a professional to print your invitations as well. You can be impersonal and call or text a few selected friends or make it a big event by using proper invitations, the choice is yours.

5.     Finalize Your Menu

As it is a pool party, keep light refreshments and snacks for earlier hours while your guests are in the pool. You can then serve a good meal at lunchtime. The menu depends upon your personal tastes and the preferences of your guests.

6.     Plan for Music and Other Entertainment

Do you solely want to keep the pool as a source of entertainment or are you planning to spice things up with some music in the background? Hire a DJ or assign one person the task on setting up music during the event. If you want to entertain your guests with games and contests, brainstorm on theses ideas and finalize a few good ones. You will need to prepare for these activities in advance to have them ready for the party.

7.     Decorate the Pool Area according to the Theme of Your Party

Use yellow and blue colors to decorate the venue. You can use flowers as well to give it a bright and fresh appearance. Add tables and chairs for your guests near the poolside to provide comfortable seating to your guests.

8.     Other Prerequisites

When writing the invites, remind your guests to bring plenty of sunscreen and keep some in stock just in case your guests need it at the event. Use umbrellas to provide shady areas around the pool if there is not cover provided from the heat of the sun. With a pool party, you need to serve cold refreshments, so have plenty of ice available for use. You can ask local businesses for door prizes. You can also make party favors to give to your guests at the end of the event. Pool parties are a great way to make new friends, and recruit new volunteers for your community. Pass out notices and invite neighbors to help you throw the party. Be sure not to discriminate against any protected class(es) of residents (including children). Make sure to follow all community rules. Check with your lawyer and/or insurance agent before serving or allowing alcohol.

Organize your pool party by following these steps and have fun with your friends. The pool awaits you!

Helpful Insight for New Board Members

Helpful Insight for New Board Members

Congratulations on your new role of serving on your community's board of directors! While you were not likely given much information to help ready yourself for your new “job”, there are right ways and wrong ways to begin your term on your community board. Below are some useful tips to help you gain insight and better prepare you for your new position as a community association director.

Do your homework

Once you join your board of directors, your work is just getting started.  You must be prepared to attend your board meetings as well as any membership meetings; however, it doesn't end there. You will need to review reports, minutes and many other materials pertaining to your role as a director before you weigh in with a decision on them. You should not expect others such as another director or the manager to do your job, but you should consult with them and try to incorporate various points of view.

 

Familiarize yourself

You should become familiar with your role and your association's documents as soon as possible. There are materials the manager can provide that will help you better understand your role as a community association board member as well as online material. It is best to start with your Community’s Governing Documents. You may also want to consider reading the statute which governs your particular type of association. Do not expect to interpret everything on your own; that is your association attorney's role.

 

Ask questions

Asking questions is always a good way to learn anything that is new to you. Rather than making assumptions, ask questions about why the board is doing certain things and enforcing or ignoring certain policies. However, questions should remain genuine with the purpose of obtaining information, not veiled accusations or criticism. There will be a time to address issues after all the facts are gathered first. 

Take your role seriously

You cannot fulfill your fiduciary (acting legally, ethically, and in the best interest of the community) obligations if you do not attend meetings, are not adequately prepared, and do not take your role as a director seriously. Keep in mind, that even if you think the role easy, you might learn a hard lesson to the contrary in court. It is your responsibility to be focused on what is in the best interests of the community while putting aside any personal issues. You cannot truly represent your community in good faith if you do not put the interest of the association's homeowners collectively first.

Your voice and your vote count, so use both wisely. Volunteers like you can make a difference. I am also mindful that state legislators, the North Carolina governor, and even the President of the United States, first got their start as community leaders/organizers. The work you do is important and should always be treated accordingly. 

Caring for Your Yard in the Spring

Spring season is here, and as flowers bloom in the wild, you are inspired to do some yard work of your own. To get started on your yard, you will need to buy some yard equipment if you do not own any, along with seeds and fertilizers. If you are unsure of what to do to make your yard look beautiful in the spring, here are 5 top tips to take care of your yard after the winter season has left it barren:

Cleaning Your Yard

If you have kept your yard clean during the winter, you will only need to rake it after the ground has dried up, to gather the fallen leaves. However, this is not as simple as it seems. The entire ground of your yard will not be equally absorbent, leaving patches of wet areas in the midst of a dry yard. Make sure it dries completely before planting, as wet ground is more susceptible to weeds and plant diseases. Make sure your yard is evenly laid out. Dig out high areas and fill out the hollow ground to level it all equally. If your soil is compacted together, use a rake to loosen it and aerate it properly.

   It is always a good idea to clean up and make 

   sure play areas are safe and in good condition. 

Planting the Grass

Once the soil is ready, you need to plant the grass seeds that you have bought. Different seeds will give varying results based on your geographical location and climatic conditions, so make sure you buy the ones that will work best according to your area. Ask your neighbors or a store clerk for assistance when choosing grass seeds for your lawn or yard. You can choose to seed your grass by hand or use mechanical means if available. Once the seeds have been planted, water the soil and keep it moist.

Fertilizing the Yard

You will also need to fertilize the grass in order to obtain a healthy and uniform growth. It is best to use a slow and low nitrogen product as fertilizer. When applied properly, the rightfertilizer can provide lush green growth to your grass. However,if care is not given to the use of fertilizers, the grass can actually become damaged and have stunted or uneven growth.

Mowing Your Grass

When your grass reaches a height of more than 3 or 4 inches, trim it using a lawnmower. Trimming helps in retaining the beauty of your yard and helps you in keeping it maintained.However, remember not to trim more than half an inch of the growth at any one point in time.

Maintain Your Lawn Equipment

In order to obtain a healthy and beautiful yard in the spring, youneed to not only care for your grass, but also maintain your equipment in its prefect condition. The one machine that is very important for the upkeep of your law is your mower, so make sure that it is kept in good condition even when it is not in useduring the winter season.

Using the tips given above, you can easily care for your yard in the spring season. So get started and grow a healthy and green lawn today! Please make sure to follow any rules your community association may have about making exterior or landscape changes.

Simple Advice for New Owners

Communities that are managed by HOAs (Home Owner Associations) often have several rules and regulations that must be followed by every resident. These specific requirements are often applied to homeowners so that they will be able to live harmoniously within the neighborhood and benefit from itsfacilities in the best manner.

Before moving into an HOA community, it is important to be aware of the association’s particular set of regulations, as this can help you in settling down within the neighborhood in a more comfortable way. Keep reading to discover how you can settledown into an HOA community with ease.

Pick the Right Community

Because different community have different rules and standards, as a buyer (or renter) make sure you pick a community that fits your life style. 

Follow the Rules

As mentioned above, every HOA has its set of regulations and rules. They might be related to your individual conduct withinthe community; your rights and obligations while residing in the particular locality; or might even contain information regarding the various permissions and restrictions enforced upon the homeowners that are a part of the association. For instance, many HOAs do not allow property owners to renovate their home exteriors without obtaining the permission of the association. Similarly, there might be a no-littering policy or a landscaping facility provided to the people living in the community. Regardless of what the rules may be, consider them with care and once you move into your new area, follow these rules as aresponsible member of the society.

Pay Your Dues

HOAs charge homeowners for the facilities they provide. Determine the maintenance cost of living within any particular HOA and estimate if you will be able to pay the fees along with your other monthly expenses. Timely payment will help you in settling down effectively, without paying any fines or penaltiesto the association.

Attend Social Events

Among the facilities provided by HOAs, one of them is to organize social gatherings and events for the residents of the neighborhood. Attend all social events organized by theassociation and socialize with your neighbors so that you will be able to settle down in your new community in the best way.

Participate Actively at Community Meetings

HOAs schedule occasional meetings with all of the homeowners to discuss problems and obtain views and suggestions from them, regarding the community. If you are shifting to an HOA neighborhood, be present for all such meetings and be ready to provide necessary feedback to the association in order to improve its working.

Avail the Facilities

The best benefit of living within an HOA community is theavailability of numerous amenities provided to the residents.However, most of these services are maintained at a cost that isprovided by you on a monthly basis in the form of maintenance fees. Thus, if you are living within an HOA neighborhood, make the most of your money and be sure to avail all of the facilitiesbeing provided to you as a homeowner.

 

Use these measures to avoid prolonging your settlement within an HOA neighborhood and enjoy the various benefits of living in a close-knit community.

Best Plants for Easy Indoor Gardening

Some homeowners who have a green thumb, experiment with alarge variety of plants in their gardens and backyards. However,many others do not have the time or the space to care for theirgarden and plants in the best way.

If you are too busy to care for your garden and are searching forlow maintenance plants; or if you lack the open space of a garden or a backyard to cultivate your plants; here are some ofthe best indoor plants that you can easily keep and maintain within your home without excessive effort:

Pothos

Care – This plant can survive is varying light conditions, and requires normal temperatures and regular watering to survive.

Décor – You can place it in a pot or even hang it in a basket as its trailing stems can grow as long as 8 feet.

Properties – Its natural air purifying properties clear your home of harmful toxins.

Aloe

Care – Aloe can easily survive in room temperatures of nearly 70 degrees and requires plenty of sunlight. Avoid watering this plant frequently as it prefers dry soil.

Décor – Large potted plants can grow as high as 3 feet. Smaller versions however, are perfect for random sunny corners around the house.

Properties – The leaves of an Aloe contain a sap that has medicinal properties, used to make many skincare products.

Spider Plant

Care – Give this plant an average amount of natural light and with room temperatures of 60-75 degrees, it will thrive in your home. However, remember to keep the soil slightly moist at all times.

Décor – Add a twist to your decor with this springy plant that can work well as a potted or hanging plant.

English Ivy

Care – With moist soil and cool room temperatures rangingfrom 50-70 degrees, English Ivy is a trailing plant that can easily be planted in any home by bringing a sample and placing it in your pot.

Décor – Due to its trailing stems and creeping characteristics, English Ivy can be used to decorate your home with elegance.

Jade Plant

Care – This plant can survive on little water and grows well in bright light with normal room temperatures.

Décor – The Jade Plant grows slowly and provides a lush green element to your décor.

Rubber Tree

Care – Medium to bright light conditions, temperatures between 60-80 degrees, and regular watering allow this plant to grow in the best way.

Décor – This tree has naturally glossy leaves, adding a shine and color to any living space. It can grow up to 8 feet tall.

Diffenbachia

Care – This plant can live in low to medium lighting. However, the temperature should not be lower than 60 degrees and the soil should be kept moist.

Décor – For a tropical touch, place this plant in your home. With its big leaves and up to 6 feet height, it can alter the atmosphere of any residence.

Peace Lily

Care – this flowering plant requires low lighting, low humidity,moist soil, and temperatures of about 85 degrees.

Décor – with its pretty white flowers, the Peace Lily can bring color and beauty to your living room.

Snake Plant

Care – The Snake Plant can grow is varying light conditions and temperatures, with dry soil and atmosphere.

Décor – Growing upright in a pot with twisted leaves, this plant has double colored leaves and can occasionally bloom with white flowers, adding style and elegance to your home.

 

Purchase these plants or experiment with your own chosen potted plants, to enjoy gardening without the hassle or need of excessive space.