Category Archives: CMCA

Survey Says: Ethics Still Matter in Business

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The Darden Report The University of Virginia

By McGregor McCance

Does the stakeholder approach to business still matter in a climate dominated by raw, power-play decision-making?

Stakeholder proponents like Darden School of Business Professor Ed Freeman say the answer is yes, even as corporate executives pull back on commitments to workers and political leaders today enact massive changes that will deeply affect employees and other stakeholders.

“The opportunity for businesses to step up is huge,” Freeman said.

New research suggests that is exactly what people want.

A recent survey gauging what people expect from corporate America ranked ethical leadership as the No. 2 expectation people have for business. That result was up from the No. 7 spot last year.

Similarly, respondents listed the expectation that corporations “communicate transparently” rose to the No. 4 rank this year, from No. 12 the previous survey.

The No. 1 result: People expect and want fair, living wages.

The annual Americans’ Views on Business Survey, conducted by JUST Capital, is intended to identify what the public expects from business, what issues matter most, and where there are opportunities for business leadership.

JUST Capital was co-founded in 2014 by a group from business, finance and civil society who “believed that business and markets can and must be a greater force for good.” The founding members include investor Paul Tudor Jones II, who earned an economics degree from the University of Virginia.

Freeman, who collaborates regularly with JUST Capital, said this year’s survey results are not surprising, as they fit with a pattern of public sentiment for ethical, fair behavior toward employees and other stakeholders such as suppliers, communities and investors.

“If you ask American people what they want about their business, they want them to essentially create value for their stakeholders. That’s the short form of what this survey says,” Freeman said. “They place fair wages, dealing with customers in the right way, and ethics, at the top of the list. This isn’t some weird idea. It’s what people expect.”

Stakeholder capitalism is defined broadly as an approach to business in which a company or organization considers how its actions will affect all stakeholder groups, rather than fulfilling a responsibility only to shareholders. The approach urges consideration of employees, customers, suppliers, the community and the environment – as well as shareholders.

“The opportunity for businesses to step up is huge.”

ED FREEMAN, DARDEN PROFESSOR

Stakeholder capitalism or stakeholder theory have long been core to Darden’s curriculum and School values. Freeman, who has taught stakeholder theory and ethics at Darden since 1987, is credited with articulating the original stakeholder tenets in a business context in his 1984 book “Strategic Management: A Stakeholder Approach.”

JUST Capital said the latest survey results mirror sentiments expressed by voters in the November 2024 election cycle: “Americans are concerned about their economic well-being, about how they are treated as consumers, about being able to support their families. And they appear distrustful of institutions as they repeatedly call for increased transparency, corporate accountability and leadership.”

For Freeman, the results bolster Darden’s commitment to teaching responsible leadership, while giving corporate and government leaders more reason to think about how their decisions affect others.

“When the effects are not good, you’re partially responsible for that,” he said. “Stakeholders are responsible too, but you’re partially responsible for the effects of your actions. That’s just ethics 101.”

The survey’s top 10 issues that members of the public identify for business:

  1. Pays a fair, living wage
  2. Acts ethically at the leadership level
  3. Supports worker wellbeing
  4. Communicates transparently
  5. Provides benefits and work-life balance
  6. Supports workforce advancement and training
  7. Treats customers fairly
  8. Offers fair pricing
  9. Creates jobs in the U.S.
  10. Protects customer privacy

About the University of Virginia Darden School of Business

The University of Virginia Darden School of Business prepares responsible global leaders through unparalleled transformational learning experiences. Darden’s graduate degree programs (MBA, MSBA and Ph.D.) and Executive Education & Lifelong Learning programs offered by the Darden School Foundation set the stage for a lifetime of career advancement and impact. Darden’s top-ranked faculty, renowned for teaching excellence, inspires and shapes modern business leadership worldwide through research, thought leadership and business publishing. Darden has Grounds in Charlottesville, Virginia, and the Washington, D.C., area and a global community that includes 18,000 alumni in 90 countries. Darden was established in 1955 at the University of Virginia, a top public university founded by Thomas Jefferson in 1819 in Charlottesville, Virginia.

Technological Proficiency In Community Association Management

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By Lydia Pelliccia and Matthew Green, CAE

We had the privilege of speaking with Candace Lewis, CMCA, AMS, PCAM, into this particular topic. She is the Director of Marketing for Cardinal Management Group, LLC, a privately held, locally founded firm in Woodbridge, VA.

It’s crucial for professionals in every industry to stay up to date on new technologies and the community association management profession is no different. Managers are embracing a variety of tools to improve efficiency, productivity, communication, resident satisfaction and better collaboration with Boards and business partners. From selecting the right device (phone, tablet, app, etc.) to choosing the appropriate software that suits their needs, these tools help make managers’ lives and jobs more rewarding. 

Technology in Action: Streamlining Processes, Maximizing Efficiency 

“There was a time when information about communities was kept in a binder and, as a manger, you had to lug that binder to meetings so you had the information you needed at your fingertips,” said Candace Lewis. CMCA, AMS, PCAM. “Now, having it digitally accessible on your phone, tablet or computer allows for easier access and searchability. Most documents have Optical Character Recognition (OCR), which makes finding specific language or keywords much easier in a litany of governing documents. For example, I was at an Architectural Review Committee appeal hearing with a Board of Directors questioning what the rule stated about the height of a retaining wall; I was able to quickly find the answer on my tablet. Instead of delaying their decision to the next meeting, the Board was able to quickly move forward.”

Candace further explains that tasks like violation reporting and tracking have significantly improved with technology. “Instead of using a clipboard, pen and paper to log violations, we now have community management software, such as CINC, SmartWebs or FrontSteps, that help managers efficiently handle these issues by quickly uploading photos while sending the violation notice in real-time,” said Candace.  “Homeowners receive an email about the violation and, in turn, more swiftly remedy the issue. Depending on the platform used, homeowners can also log-in to see their outstanding violations and any photos the manager has uploaded.”

Digitizing resales in HOAs helps modernize the process, making it faster, more efficient, and more transparent. It provides significant benefits in terms of operational efficiency, cost savings, enhanced communication, and compliance. Candace explains, “There was a time when a potential buyer had to wait for a large package of documentation to arrive in the mail before they could review the association’s governing documents, prior to moving to settlement. Hard copies required an individual in an office to print, organize and mail to the potential buyer. Now, services like CondoCerts, HomeWise and others offer a digital delivery of these documents making it less time consuming with minimal paperwork. “For both homeowners and managers, the transition to a digital system creates a smoother, more convenient experience while also improving the long-term management and oversight of the community,” added Candace.

The pandemic fueled the rise of virtual meetings and the use of Zoom, Microsoft Teams, or Google Meeting platforms to host these events.  As a result, many Board and Annual Meetings are now hybrid or fully virtual. Further, what has also become an option for many managers is the opportunity to continue working remotely. “In the past, when homeowners or homeowner volunteers wanted to meet with us, we’d convene at the office or onsite,” said Candace. “Now, we can quickly arrange a virtual meeting, which is helpful when having difficult conversations that are easily misinterpreted via phone or email. In addition, regularly scheduled virtual team meetings have also enhanced collaboration and meaningful “in-person” dialogue.”

Artificial Intelligence Supporting Communications Efforts 

Candace offered one of the most popular uses of technology, as a manager, is the thoughtful use of AI platforms to help managers craft email responses, homeowner notices, newsletters, email blasts, requests for proposals, policy resolutions, bid comparisons, and more. “I use ChatGPT and Grammerly, like many others; however, some software companies have developed their own AI add-ons, such as MicroSoft’s Azure AI,” said Candace. “AI is also a great tool to use on most mobile devices when communicating with a homeowner whose first language is not English.”

Are there challenges in convincing homeowners to use newer technology? Absolutely. “Most people need another login credential like they need a crack in their foundation,” quipped Candace. “Urging anyone to download an app or create a new sign-in, isn’t always easy.”

Candace notes, more importantly, as data and operations go digital, cybersecurity becomes a critical concern. Managers must stay updated on best practices for protecting resident data and ensuring that functions such as online payment systems, communications channels and other digital tools are secure from breaches.

Staying abreast of new technology helps community association managers improve operational efficiency, reduce costs, enhance resident satisfaction, maintain compliance, and stay competitive in a changing market. “It’s not just about keeping up with trends – it’s about using technology to create a more streamlined, responsive, management approach,” said Candace.

Candace expressed that information about new technology is often in mainstream media; however, technology specific to community associations is best discovered at the CAI Annual Conference or local chapter conferences and expos. Additionally, she finds “ads and articles in CAI publications have been a great help in spreading the word about the many options available.”

Technological Proficiency In Community Association Management is the sixth in a series of articles, produced by CAMICB staff, that delve into the important issues and topics affecting community association managers. 

Lydia Pelliccia is a freelance writer. Matthew Green is executive director of Community Associations Managers International Certification Board.

Endless Board, No Annual Meetings, and Toxic Committee Members

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By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column 

Dear Mr. Richardson: Our board has been in place for over 10 years. Bringing new members on board has not been successful as ballots are counted secretly. Annual elections apparently have always had a difficult time obtaining a voting quorum. This year, the board passed a resolution that they can remain in place until the next annual election to see if there will be enough ballots returned for a vote. I cannot see any rules or direction in our bylaws to allow for directors to remain continually should there not be enough ballots returned. Is this something they can do? M.D., El Cajon

Dear M.D.: Unfortunately it is all too common for HOAs to fail in membership meetings to attain quorum (the minimum number of participants to allow membership voting), and therefore fail to conduct an election. However, that should be less of a problem following the relatively new Civil Code Section 5115(d)(2), stating if a board election fails for lack of quorum the HOA can adjourn the meeting to a new date at least 20 days later, at which time the quorum drops to 20%. Most HOAs should find that lower quorum number more attainable, and therefore help board elections to occur.

In the event an election fails for lack of quorum despite the reduced quorum, the directors continue to serve in their seats until they resign or are replaced by election, pursuant to Corporations Code Section 7220(b). So, your board would not need a resolution to continue to serve. They automatically continue to serve until they resign or until a successful election occurs.

M.D., you reference that ballots in your HOA are counted secretly, and that is not how the law requires counting to occur. Civil Code Section 5120 requires that the vote counting occur in an open membership meeting or board meeting and that any member of the HOA can witness the vote counting. Also, under Civil Code Section 5125 any member can inspect the ballots and tally sheet. Best regards, Kelly

Kelly, are there any ramifications for HOAs who do not hold timely elections? Thank you. A.W., Signal Hill

Dear A.W.: The answer to this question also comes not only from the Davis-Stirling Act, but from the Corporations Code. Corporations Code Section 7510 says that if a corporation is overdue by at least 60 days in holding its annual meeting, or if it has not held an annual meeting in 15 months, a court petition can be filed seeking to compel the HOA to hold its annual meeting. A simple reminder to the Board and management hopefully should be enough, as court petitions require attorney fee expense. Thanks, Kelly

Question: How do you remove a toxic committee member? J.K., Santa Barbara 

Dear J.K.: Normally, committee members are appointed by the board and serve at the board’s pleasure, unless the HOA bylaws state otherwise. If someone is creating havoc in a committee, the board can remove or replace them at an open board meeting. Some boards mistakenly call this a “personnel” matter and change committee rosters in closed session but that is a mistake – volunteers are not “personnel” and even though it might be awkward to do in an open meeting, such a decision must be out in the open (and noted in the minutes). Sincerely, Kelly

The Best CEOs Are Like Great Frontmen and Here’s Why That Matters

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Here’s how organizations can rethink leadership readiness by drawing inspiration from the way rock bands test and elevate their talent.

By Rhett Power for RollingStone Magazine

The crowd is roaring. The lights are up. The stage is set. At that moment, no résumé, portfolio or pedigree can help a musician hit the right note. It’s all about performance. The same holds true in the corporate world. The clearest sign of executive readiness is a leader’s ability to perform under real pressure: When uncertainty is high, stakes are real and others are looking for direction. And in a business climate where leadership turnover is accelerating, companies can’t afford to cast their headliners without a proper soundcheck.

Over the years, I’ve helped companies navigate high-stakes leadership transitions. Time and again, I’ve seen that the most effective leaders aren’t the ones with the best résumés, but the ones who’ve proven they can perform under pressure. What I’ve learned is simple but often overlooked: the best leaders are the ones who have already delivered a strong performance when it mattered most. Here’s how organizations can rethink leadership readiness by drawing inspiration from the way rock bands test and elevate their talent.

Résumés Don’t Predict Readiness — Live Performance Does

It’s easy to be dazzled by credentials, tenure and polished interview skills. But a strong résumé is like a pristine demo tape: it might sound good, but it doesn’t tell you how someone will perform on a live stage.

Research consistently shows that leaders who stay calm and composed in high-pressure situations have a significant impact on team outcomes. Teams take their cues from the people leading them. When leaders stay composed under pressure, the ripple effect shows up in performance, collaboration and resilience. That kind of steadiness doesn’t show up in interviews but rather in the hard moments, when direction and calm are most needed.

Executive search firms are seeing a shift in how boards define “readiness.” What matters most is how someone shows up when everything is on the line. Companies need to focus on leaders who’ve already faced tough moments and demonstrated they can lead through them with clarity and resilience.

Interim Leaders Are the New Test Run for the C-Suite

More companies are turning to interim executives to observe how a leader handles the job under real conditions before committing to a long-term hire. Demand for interim CFOs and other top-level leaders is rising fast, and these roles are increasingly being used as quiet auditions for the long term.

I’ve seen interim roles serve as powerful auditions that can either uncover a leader’s readiness or expose critical gaps long before a permanent offer is made. Interim roles offer a glimpse into how a leader handles ambiguity, drives strategy and gains trust without the commitment of a long-term hire. But they also carry risk. Interim leaders can flounder without clear expectations and support, leaving organizations worse off.

Much like a band might bring in a touring musician to test chemistry and capability before offering a permanent spot, businesses are using interim roles to simulate the pressure of the top job. Interim roles have become the rehearsal space for the C-suite, offering leaders a chance to prove themselves before the spotlight turns on for good.

Flattened Orgs Are Losing Their Next Leaders

The pandemic-era push for agile, flatter organizations has helped eliminate bureaucracy but eroded the traditional leadership pipeline. “The Great Flattening,” a trend where companies eliminate middle layers of management, is making it harder to identify, train and promote the next generation of executives.

Without strong VP-level roles that stretch talent and provide real leadership reps, companies are starving their future stars of stage time. It’s like skipping the opening act and expecting someone to headline flawlessly.

That’s why companies must treat mid-level leadership as a developmental phase, not a holding pattern. These roles should be structured to challenge, empower and evaluate performance under increasing responsibility. I’ve always seen VP roles as more than middle management. They’re the training ground where future executives build the instincts and experience they’ll need when it’s their turn to lead.

The Final Encore

Leadership readiness comes through in real moments — not in theory, but in how someone leads when it counts. When the spotlight hits, you either rise or fall. Companies can avoid costly misfires at the top by shifting focus from credentials to real-world performance, treating interim roles as meaningful auditions and rebuilding mid-level proving grounds.

In the end, what matters most is having people who can step up and deliver when the moment demands it — just like the bandmates who shine when the crowd’s waiting and the lights come up.

Only 12 U.S. States Require HOAs To Maintain Cash Reserve Plans: What Owners Should Know

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By Anna Baluch for Realtor.com

The condo crisis in Florida is worrisome, to say the very least. Aging properties, stricter structural and cash reserve funding laws due to the Surfside collapse, and skyrocketing association fees have made life harder for condo owners in the Sunshine State. 

Speaking of cash reserve funding laws, if you’re thinking of buying a condo anywhere in the U.S., you should be aware that only 12 U.S. states, including Florida, legally require condo/HOA associations to maintain formal cash reserve plans or studies—and even fewer require full funding.

But what exactly does this mean? Well, some condo owners in those states may be better protected against surprise assessments. Others, however, may face painful dues hikes or special assessments that could make living in an HOA financially unattainable.

What is an HOA cash reserve—and how does it differ from a special assessment?

Put simply, a cash reserve is a fund that an HOA is legally required to maintain in order to cover future maintenance, repairs, and emergency costs.

“These reserves are based on projections of future needs and are meant to ensure the long-term upkeep and safety of the community,” says Raul Gastesi, attorney and partner at Partner & Gastesi Lopez Mestre & Cobiella in Miami. 

In contrast, a special assessment is an unplanned, additional charge levied on homeowners when unexpected issues arise that the reserves can’t cover. These typically occur when major repairs are needed—like roof replacements or structural fixes.

“Special assessments tend to create homeowner dissatisfaction because they often involve large, sudden out-of-pocket costs that were not originally budgeted for,” explains Gastesi.

Which 12 states require reserve funds—and what makes each law unique?

“Association directors/members who elect to fund reserves, whether by choice or requirement, are better positioned to manage future repair costs, avoid special assessments, and maintain the long-term financial stability and property values of their communities,” says Danielle Blake, chief of residential and advocacy for MIAMI REALTORS® in Florida. 

While reserve funds do come with benefits, including the ones described by Blake, they’re not perfect. They can often lead to higher HOA fees and other issues, such as overspending. Currently, only these 12 states mandate reserve funding:

First, there’s Florida

Following the Champlain Towers collapse, Florida enacted a law requiring condominium associations to conduct structural reserve studies every 10 years and fully fund those reserves by the end of 2024. 

“While this regulation is a critical step for life safety and long-term property value, it can be painful for current owners,” says Gastesi. “Many associations, especially those that historically deferred maintenance to save costs, now face steep financial catch-ups.”

Properties that fall behind on reserves not only risk safety but can suffer significant financial consequences. After all, disrepair affects a unit’s resale value, refinancing options, and the association’s ability to borrow.

“In extreme cases, banks may refuse to lend for purchases in underfunded buildings, limiting sales to all-cash buyers and dramatically reducing market value,” explains Gastesi. 

The other 11: Hawaii, Delaware, Maryland, Oregon, Nevada, Connecticut, Illinois, Massachusetts, Michigan, Minnesota, Ohio

These states require reserve funds—and some also mandate formal reserve studies that are used to assess funds and ensure they’re at optimal levels. Maryland and Oregon, for example, require reserve studies every five and three years, respectively. Also, Hawaii, like Florida, requires significant reserves for structural problems due to safety or housing pressures.

It’s also important to note that a broader group of twelve states require formal reserve studies, including California, Colorado, Florida, Hawaii, Maryland, Nevada, Oregon, Tennessee, Utah, Virginia, Washington, and Delaware.

Can homeowners negotiate reserve levels—or special assessments?

“In states where reserves are mandated by statute, there’s no negotiation—complying with them is required by law. Rarely, an association might request a payment plan from regulators to catch up, but this is generally discouraged,” says Gastesi.

For special assessments, negotiation may be possible, especially at the implementation level. As a homeowner, you can attend budget and board meetings to gain a better understanding of the necessary maintenance and repair projects.  

“Ask whether the association is using a straight-line or pooled method for funding reserves, as a pooled method may provide more flexibility,” Blake advises. “Also, explore financing options, such as the use of a line of credit, bank loan, government-backed programs that may help to reduce the financial burden on owners.”

Are Director Speeches and Consent Calendars OK for our HOA?

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By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Mr. Richardson: I really enjoy your HOA Homefront column. Here’s a question: Is it appropriate for board members to use homeowner time to make speeches? We have a board member who likes to do that — often disparaging owners who have different opinions from hers. Thank you, A.M., San Diego

Dear A.M.: Open forum is not the time for the board members to talk, but is their time to LISTEN. They should be noting any questions or action items that need to be answered or directed to management or a committee. The Open Meeting Act prohibits directors from discussing (or orating) on matters not disclosed on the agenda, per Civil Code Section 4930(a). However, subparts (b) and (c) of Section 4930 allow directors to answer questions or request matters be referred to management, staff, or a committee, which should happen AFTER open forum ends. Board members who abuse open forum by interrupting members cannot fairly insist that homeowners in the audience not interrupt board deliberations. Finally, it’s bad form to use one’s board seat as a platform to bully or criticize other members. Sounds like someone should gently rein this person in a bit. Best, Kelly

Dear Kelly: In an attempt to make board meetings brief, they have taken to voting the “consent calendar” as one agenda item, without any prior members’ knowledge, discussion or even speaking the items on it. This month these include: approve the minutes; acknowledgement that board members have reviewed the financials; treasurer’s report; and manager’s report. These reports are provided to the board by the treasurer and manager prior to the meeting. They are then adopted by the Board at the meeting always without discussion or disclosure of the contents. The reports are then attached as separate PDFs to the minutes of the meeting which are provided to the members a few days after the meeting. Should not these reports be seen by the members before the Board votes on them? How can this square with the open meeting rules or intent? R.S., Solana Beach

Dear R.S.: Consent calendars are a powerful tool to dispose of items not expected to require any discussion – such as the items you list- in one quick vote without deliberation. The consent calendar items still must be listed on the posted agenda, and any director can without explanation ask for an item to be removed and handled as a separate motion. Since consent calendar items are not discussed, it is another reason to conduct open forum at the beginning of the meeting. However, reports the board receives in their “board packets” are not normally shared with the rest of the HOA unless those reports are accepted and added to the minutes. Sometimes the board packet has confidential information such as multiple bid proposals, or incident reports, or delinquency lists, which should not be shared with the community at large.

Consent calendars are valuable because they preserve time and energy for the items which might be controversial and need board focus. Even the smallest HOAs would benefit from their use. One caution – don’t overuse consent calendars as a technique to avoid discussing matters which are not truly routine or non-controversial, because that can quickly destroy a board’s credibility. Nothing is more important than the HOA’s trust in their board.

Sincerely, Kelly

Technological Proficiency In Community Association Management

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By Lydia Pelliccia and Matthew Green, CAE

We had the privilege of speaking with Candace Lewis, CMCA, AMS, PCAM, into this particular topic. She is the Director of Marketing for Cardinal Management Group, LLC, a privately held, locally founded firm in Woodbridge, VA.

It’s crucial for professionals in every industry to stay up to date on new technologies and the community association management profession is no different. Managers are embracing a variety of tools to improve efficiency, productivity, communication, resident satisfaction and better collaboration with Boards and business partners. From selecting the right device (phone, tablet, app, etc.) to choosing the appropriate software that suits their needs, these tools help make managers’ lives and jobs more rewarding. 

Technology in Action: Streamlining Processes, Maximizing Efficiency 

“There was a time when information about communities was kept in a binder and, as a manger, you had to lug that binder to meetings so you had the information you needed at your fingertips,” said Candace Lewis. CMCA, AMS, PCAM. “Now, having it digitally accessible on your phone, tablet or computer allows for easier access and searchability. Most documents have Optical Character Recognition (OCR), which makes finding specific language or keywords much easier in a litany of governing documents. For example, I was at an Architectural Review Committee appeal hearing with a Board of Directors questioning what the rule stated about the height of a retaining wall; I was able to quickly find the answer on my tablet. Instead of delaying their decision to the next meeting, the Board was able to quickly move forward.”

Candace further explains that tasks like violation reporting and tracking have significantly improved with technology. “Instead of using a clipboard, pen and paper to log violations, we now have community management software, such as CINC, SmartWebs or FrontSteps, that help managers efficiently handle these issues by quickly uploading photos while sending the violation notice in real-time,” said Candace.  “Homeowners receive an email about the violation and, in turn, more swiftly remedy the issue. Depending on the platform used, homeowners can also log-in to see their outstanding violations and any photos the manager has uploaded.”

Digitizing resales in HOAs helps modernize the process, making it faster, more efficient, and more transparent. It provides significant benefits in terms of operational efficiency, cost savings, enhanced communication, and compliance. Candace explains, “There was a time when a potential buyer had to wait for a large package of documentation to arrive in the mail before they could review the association’s governing documents, prior to moving to settlement. Hard copies required an individual in an office to print, organize and mail to the potential buyer. Now, services like CondoCerts, HomeWise and others offer a digital delivery of these documents making it less time consuming with minimal paperwork. “For both homeowners and managers, the transition to a digital system creates a smoother, more convenient experience while also improving the long-term management and oversight of the community,” added Candace.

The pandemic fueled the rise of virtual meetings and the use of Zoom, Microsoft Teams, or Google Meeting platforms to host these events.  As a result, many Board and Annual Meetings are now hybrid or fully virtual. Further, what has also become an option for many managers is the opportunity to continue working remotely. “In the past, when homeowners or homeowner volunteers wanted to meet with us, we’d convene at the office or onsite,” said Candace. “Now, we can quickly arrange a virtual meeting, which is helpful when having difficult conversations that are easily misinterpreted via phone or email. In addition, regularly scheduled virtual team meetings have also enhanced collaboration and meaningful “in-person” dialogue.”

Artificial Intelligence Supporting Communications Efforts 

Candace offered one of the most popular uses of technology, as a manager, is the thoughtful use of AI platforms to help managers craft email responses, homeowner notices, newsletters, email blasts, requests for proposals, policy resolutions, bid comparisons, and more. “I use ChatGPT and Grammerly, like many others; however, some software companies have developed their own AI add-ons, such as MicroSoft’s Azure AI,” said Candace. “AI is also a great tool to use on most mobile devices when communicating with a homeowner whose first language is not English.”

Are there challenges in convincing homeowners to use newer technology? Absolutely. “Most people need another login credential like they need a crack in their foundation,” quipped Candace. “Urging anyone to download an app or create a new sign-in, isn’t always easy.”

Candace notes, more importantly, as data and operations go digital, cybersecurity becomes a critical concern. Managers must stay updated on best practices for protecting resident data and ensuring that functions such as online payment systems, communications channels and other digital tools are secure from breaches.

Staying abreast of new technology helps community association managers improve operational efficiency, reduce costs, enhance resident satisfaction, maintain compliance, and stay competitive in a changing market. “It’s not just about keeping up with trends – it’s about using technology to create a more streamlined, responsive, management approach,” said Candace.

Candace expressed that information about new technology is often in mainstream media; however, technology specific to community associations is best discovered at the CAI Annual Conference or local chapter conferences and expos. Additionally, she finds “ads and articles in CAI publications have been a great help in spreading the word about the many options available.”

Technological Proficiency In Community Association Management is the sixth in a series of articles, produced by CAMICB staff, that delve into the important issues and topics affecting community association managers. 

Lydia Pelliccia is a freelance writer. Matthew Green is executive director of Community Associations Managers International Certification Board.

Is Our Board Following the Open Meeting Act?

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By Kelly G. Richardson, Esq., CCAL, HOA Homefront Column

Mr. Richardson: Is homeowner open forum a requirement in California or just handy for everyone involved? Or, should I speak with each board member individually to ask for that time in the monthly board meetings? Or, is that only an agenda item at the yearly membership meeting? S.L., El Centro.

Dear S.L.: An open forum opportunity is required by Civil Code Section 4925 in all open board meetings and in membership meetings. This is mandatory. The board “shall” establish a reasonable time limit for members to speak. A common limit is 3 minutes per speaker, with many boards allocating up to 30 minutes for the open forum session portion of the meeting. It’s also a good idea to establish some reasonable open forum policies so attendees know what is expected.

Open forum is not only required but is a valuable opportunity for boards to hear from their members; their neighbors. It’s an important aspect of healthy HOA governance, showing that members are heard. Best, Kelly

Dear Kelly: I learned that our board authorized themselves to approve non-emergency expenses up to a stated amount between meetings if two or more directors agree to it. Isn’t this a violation of the Open Meeting Act? There have been items such as holiday lighting that never appeared on the agenda or reflected in minutes due to this self-imposed power. L.C., Anaheim Hills.

Dear L.C: The board should avoid granting directors blanket authority to spend funds outside of official board meetings. If the board does so, then decisions are being made outside of board meetings. Corporations Code Section 7210 allows the board to delegate certain activities to the manager, a committee, or other persons but the board still must ultimately be in control. So, at minimum those decisions should be disclosed and ratified by the board in its next open meeting. I suspect many of your neighbors may agree with you that your board’s current practice is not transparent. I can understand the practice if your HOA does not have a professional manager, but otherwise I think it’s a bad idea. Sincerely, Kelly.

Kelly: Our HOA board members have discussions and decide who will serve as president, VP, etc prior to a board meeting.  This occurs annually in preparation for the new term and in some cases, before the election of board members and/or after the election of board members but before their first meeting.  Should these discussions and decisions be part of the open meeting and should these discussions and decisions occur outside of board meetings? Thank you, L.O., Nipomo.

Dear L.O.: The selection of officers is not a topic permitted for executive session under Civil Code Section 4935(a). Some boards mistakenly refer to officer discussions as “personnel” (one of the few topics allowed to be handled in closed sessions) but “personnel” refers to HOA employees. Officer appointments are decisions of the board and must be made in open session. A common mistake after annual meetings is to forget to announce four days before that after the election there will be a short board meeting to elect officers. If the board does not wish to have a meeting (with agenda notice and open forum opportunity) right after the membership meeting, then it should hold off on electing officers until its next announced meeting. Best, Kelly.

Chief Executive — The Five X-Factors That Distinguish Real Leaders

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Charisma and credentials aren’t enough. In the pressure cooker of leadership, it’s the subtle, often invisible factors that determine who lasts—and who doesn’t.

Leadership isn’t just about making decisions and steering the ship anymore. It’s about being the kind of person others will follow into uncertainty — especially in the world of new ventures, where uncertainty is guaranteed. And yet, even the most intelligent, well-prepared leaders often fail. Why?

Not because they lack drive or knowledge. But because they underestimate the invisible forces that shape how leadership actually works.

These forces — call them X-Factors — operate in the margins: between vision and execution, between public wins and private choices. Most leadership breakdowns aren’t dramatic implosions. They happen slowly.

Here are five X-Factors that separate enduring leaders from those who burn out, blow up, or simply fade away.

1. Timing Is Everything (and You Don’t Control It).

Leaders love to believe that hustle beats luck. But the truth is, even perfect execution won’t compensate for poor timing. Vision alone doesn’t make a business work — readiness does. That includes market readiness, team readiness, and even emotional readiness. Poor timing often shows up in two ways: launching too early (before demand exists) or holding back too long (and missing the window). Great leaders aren’t just builders — they’re pattern recognizers. They learn to sense when to pause, when to push, and when to pivot. It’s like being a racecar driver — braking 50% of the time and accelerating 50% of the time.

How to apply it: Cultivate strategic patience. Look for signals, not just plans. Build a culture that reads the environment as well as it executes a strategy.

2. It’s Not Just Business — It’s Always Personal.

Many leaders try to separate their “professional” decisions from their personal lives — and from the lives of their team. That’s a myth. Just walk down the hallway and you’ll see it: framed snapshots of kids, partners and pets on employees’ desks. For them, it’s not just a job — it’s livelihood, identity and pride.

The same is true for you. Whether you admit it or not, every major decision you make is filtered through personal bias, emotional wiring or past experience. That doesn’t mean you should indulge every instinct, but ignoring the personal undercurrents is dangerous. Leaders who don’t do the internal work—understanding their patterns, triggers and motives—end up reacting, not leading.

How to apply it: Build an inner circle that helps you lead from the inside out. Not just advisors, but truth-tellers — coaches, therapists, or mentors who challenge your blind spots and help you lead with clarity and empathy.

3. Know How You’re Built (DNA v. Destiny).

Some leaders are visionaries. Others are operators. Some are driven by mission, others by challenge. The problem? Many first-time leaders try to become someone else—chasing a style that doesn’t fit their wiring because that’s what they think is expected by investors, boards, or peers. Growth is possible, of course. But self-awareness isn’t a luxury—it’s foundational. Great leaders build systems that match their strengths, and they hire for their gaps.

How to apply it: Ask: “Am I leading in a way that reflects how I’m built — or how I think I’m supposed to act?” Invest in assessments, reflection, and feedback loops that clarify your design.

4. If Everyone Thought Like You, You’d Have No Employees.

Uniform thinking feels good—especially in early teams. But high-alignment cultures can unintentionally punish dissent or diversity of thought. Leaders who surround themselves with clones end up with fragile companies. Real leadership means cultivating disagreement without disconnection. It means creating safety for pushback and resisting the ego-need to always be right.

How to apply it: Hire people who challenge you. Celebrate different lenses. Pair individuals who are exceptional at problem solving with those who possess a go-get-it spirit to work on the same project. Yes, it can be a guessing game—but educated guessing within these parameters beats trying to compile a team of the “smartest” people.

5. Build Your Own Core Leadership Team (Not Just a Company).

Most CEOs obsess over their team. Few invest in their own core team—the personal scaffolding that keeps them grounded. That might include a performance coach, therapist, peer group or spiritual guide. Whatever the form, the principle is the same: leadership is lonely, and self-reliance isn’t a strategy.

How to apply it: Design a long-term support system that keeps you grounded—especially when things get chaotic. Think of it like a personal board of directors—people who help you stay calibrated, focused, and resilient.

Leadership isn’t a set of tactics—especially in today’s fast-moving, information-at-your-fingertips world. It’s a relationship: with yourself, with your people, and with the moment you’re in. The leaders who endure—the ones who build resilient teams and companies—aren’t the ones who never falter. They’re the ones who understand and manage the subtler forces at play.

These five X-Factors won’t show up in an MBA course. But they are the difference between short-term control and long-term trust. Between burnout and balance. Between leading a company—and becoming the kind of leader others will choose to follow.

What Condo Owners Should Know Before a Special Assessment Hits

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Story by Robyn A. Friedman For The Wall Street Journal

That beautiful Miami Beach penthouse with the fabulous ocean views comes with more than a high price tag. It also comes with the risk that the condominium association may levy a special assessment against your unit that can run into the thousands, or even hundreds of thousands, of dollars, a factor that is having a chilling effect on sales of older condominiums not only in Florida, but nationwide.

According to the Community Associations Institute, an industry group, special assessments are charges levied by a condominium or other community association to pay for expenses that cannot be covered by the existing budget or cash reserves. These expenses can result from a fire or other disaster, unplanned maintenance or repairs.

Nowhere is the issue of special assessments more pressing than in Florida, where new legislation was enacted after the June 2021 collapse of Champlain Towers South, a 12-story condominium in Surfside, that left 98 dead. That legislation requires so-called “milestone inspections” of certain condo and cooperative buildings to ensure they are structurally sound, and to verify the adequate funding of association reserve accounts. In response, condo and coop boards have been levying special assessments against unit owners to cover necessary repairs so their buildings will pass the inspections and to cover reserves.

Janet Stone bought a two-bedroom condominium in Ormond Beach, Fla., in November 2021 for $379,000. The retired special-education teacher finished up her last class in Las Vegas and then drove to Florida to begin her retirement. Less than a year later, in the fall of 2022, she was hit with a $102,000 special assessment, payable in seven payments over two years, in amounts varying from $3,529.60 to $23,310.58.

Stone went back to work, and every cent she earned went toward paying her assessment. She made her last payment in January 2025. “I hope that the building is now structurally and fiscally sound,” she said.

Stone had reviewed the governing documents of the condo association, but not the minutes of board of directors meetings, where there was talk of the coming assessment. That is why prospective condo buyers should review all relevant documentation before they buy, including the association budget and reserve schedule, and talk with residents of the building.

According to Mark F. Grant, a partner at Greenspoon Marder in Fort Lauderdale, Fla., and a certified specialist in condominium and planned-development law, condo-unit buyers routinely obtain an estoppel letter from the association before closing. In Florida, that document details any outstanding fees due by the condo-unit seller, as well as any actual or pending special assessments, to give buyers notice of their potential liabilities. Stone said she received an estoppel letter that referred to the possibility of concrete-restoration work but that there was no dollar amount included.

If you’re hit with a special assessment, here are some things you can do.

Contest it.

Every state has strict legal requirements that a condo’s board of directors must follow to levy a proper special assessment. If they fail to follow either the statutes or any requirements set forth in the condominium’s governing documents, that may present the chance for an owner to contest the assessment because it wasn’t adopted correctly, according to Grant. Florida law, for example, requires that unit owners be provided with at least a 14-day notice before a board meeting at which a special assessment will be considered. Some condo documents require even more notice. After the meeting, the board is required to send out a resolution confirming the amount of the special assessment, how much each owner owes and when the payments are due, Grant said.

Explore financing options.

Borrow the funds to pay the special assessment from friends or family, or consider asking the board for a payment plan. If you have sufficient equity, you could also get a home equity line of credit. Chantel Bonneau Stewart, a certified financial planner at Northwestern Mutual in San Diego, recommends establishing a Heloc even before you need it. “It can be a way to finance a very large expense, such as an assessment, over a number of years, rather than having to deliver a very significant amount of cash sooner,” she said. Stewart said that condo owners might also be able to borrow from their 401(k) plan. While distributions from a 401(k) can trigger taxes or penalties, a loan paid back with interest isn’t considered a taxable distribution, she said. The plan dictates the term and other provisions, so read the fine print.

Check your insurance policy.

Condo owners typically carry a homeowners insurance policy called an HO6. Check to see if it has loss-assessment coverage—most do. That coverage can protect condo owners from paying out of pocket for a special assessment when the costs exceed the association’s master insurance policy limits, said Loretta L. Worters, a vice president at the Insurance Information Institute. But there are limitations: The assessment must be from a loss that would have been covered by your individual policy, such as a fire or hurricane, so it won’t help cover the cost of assessments done solely for repairs needed to satisfy inspection requirements.