With Florida legislation shifting frequently, condo and HOA boards should be aware of the various new laws adopted by the State of Florida that are likely to impact how their communities function or otherwise operate. The following is a short summary of several of the recently adopted bills that focus on governance in associations:
House Bill 919
Effective October 1, 2023, House Bill 919, also known as the “Homeowners Association Bill of Rights,” introduces several provisions to the normal operations of an HOA. Board meeting notices must now include specific agenda items, except in the case of emergencies. Deposits that are collected from a member for construction purposes must be kept separately and returned within 30 days after completion of the project, looking much more like the requirements for security deposits in the rental of real property. Broad protections have been added such as officers, directors and managers are prohibited from soliciting or accepting anything of value without providing consideration in return, except for minor food expenses or trade fair-related goods or services. The immediate removal from office is now mandated for officers or directors charged with specific crimes, including forgery, theft/embezzlement, destruction of records and obstruction of justice. Disclosure of conflicts of interest are required annually for developer-appointed board members and officers, as well as for all directors and officers before voting on matters that are influenced by the conflict. HOAs that exercise their long-standing right to impose reasonable fines for violations must hold mandatory hearings before the independent hearing committee before the fine may be made due and owing. Additionally, a new section, Section 720.3065, has been added to address fraudulent voting activities and associated penalties, classifying them as first-degree misdemeanors. These provisions aim to enhance transparency, accountability and fairness within homeowners’ associations in Florida.
House Bill 437
Effective July 1, 2023, House Bill 437 introduces provisions that limit the ability of HOAs in Florida to restrict the installation, display or storage of certain items on parcels. Regardless of any association rules or covenants, associations cannot prohibit parcel owners or tenants from installing, displaying or storing items that are not visible from the frontage or adjacent parcels, such as artificial turf, boats, flags and recreational vehicles. This is likely to cause a lot of problems in HOAs, especially for communities that have homes that abut a body of water and are visible from the other side of the water. Finally, homeowners have the right to display up to two flags, including the United States flag, the official flag of Florida, military branch flags, the POW-MIA flag and first responder flags, in a respectful manner, including on freestanding flag poles. While the right to fly these flags is not new, its expansion to two flags and the expanded list of flags that may be flown are substantial changes that every HOA needs to be aware of.
Senate Bill 154
Senate Bill 154 introduces several changes and requirements for condominiums and cooperatives in Florida. Several of the key provisions is the mandatory structural inspection, now referred to as a “milestone inspection,” which assesses the life-safety and adequacy of a building’s structural components that have been changed or clarified in some way. The inspection must be conducted by a licensed architect or engineer and identifies necessary maintenance, repairs or replacements. Milestone inspections are required every 10 years for buildings that are three stories or higher and reach 30 years of age. Additionally, the bill establishes deadlines, exemptions and provisions for proximity to saltwater and acceptance of previous inspection reports.
The bill also introduces updates to the definitions and requirements for the Structural Integrity Reserve Study (SIRS) in condominiums and cooperatives. The SIRS is a mandatory study conducted for buildings that are three stories or higher as defined in the Florida Building Code, focusing on evaluating various components related to the building’s structural integrity and safety. The study identifies necessary repairs, replacements or maintenance tasks for components such as the roof, structure, fireproofing, plumbing and more. It establishes guidelines for reserve funding based on the findings of the study and sets deadlines for completing the study. Certain components are now exempt from the SIRS requirements while the limitation on waiving SIRS funding has not changed. “Traditional” reserves (roof, painting and paving) now require a majority vote of the total voting interests to reduce or waive. The bill also addresses official records requests and the distribution of inspection reports to unit owners. Finally, disclosure guidelines have been added to ensure potential buyers of units are fully apprised of the integratory of the building and provide the prospective buyer with the opportunity to cancel or void the contract.
Overall, Senate Bill 154 introduces much needed clarification to the regulations adopted last year as a means of ensuring the structural integrity and safety of buildings in Florida. The requirement of milestone inspections and SIRS to identify, address and ensure funding for necessary repairs and maintenance for condominiums and cooperatives clearly remains at the forefront of Florida politics.
By Lydia Pelliccia and CAMICB Executive Director, Matthew Green, CAE
Knowledgeable, committed community association managers are the professional mainstay of the communities they serve, providing the skills and expertise that are essential to the effective management of their homeowner associations. ?These managers are dedicated to their career and take specific paths to further their professional knowledge and skill sets. For example, holding the Certified Manager of Community Associations (CMCA) credential – offered by the Community Associations Managers International Certification Board (CAMICB), is a mark of proficiency and high quality and is the only internationally accredited certification program in the world for managers of homeowner and condominium associations and cooperatives.
CMCA credentialed managers show their commitment to professionalism and staying on top of industry issues and changes in the field by complying with continuing education requirements in order to maintain their credential. This is done through a process called recertification and is the cornerstone of best practices in the credentialing industry. Recertification is an ongoing process designed to promote and prove continued competency in the community association management profession. This competency is demonstrated through participation in continuing education in the field of community association management by participation in at least 16 hours of continuing education coursework every two years.
Further, community association professionals may also choose to bolster their careers and expand their level of expertise in certain areas by earning a “specialty designation.” A “designation” is recognition of professional knowledge and expertise in a given subject matter or job skill. Certain specialty designations are offered through the Community Associations Institute (CAI) including, the Association Management Specialist (AMS), Large Scale Manager (LSM), Professional Community Association Manager (PCAM), Community Insurance and Risk Management Specialist (CIRMS) and Reserve Specialist (RS). This allows a community association professional to drill down into a specialized aspect of the business. In some cases, passing the CMCA examination is a prerequisite to applying for these designations, for example the PCAM and AMS.
Understanding the Role of a Community Association Manager
In broad strokes, the job of the CAM is part financial management, urban planning, facilities maintenance, community development, volunteer management, and project management.
Their role is to implement the policies set by the board of directors, oversee operations, services, and programs as laid out in the contract with the association, and provide information and advice to assist board members in their decision-making. Particularly, managers must be well-steeped in the details and nuances of guiding and advising their boards in specific areas that include meetings; governance, legal and ethical conduct; budgets, reserves, investments and assessments; financial controls; risk management and insurance; property maintenance; contracting; and, human resources.
Further, a strong credentialed manager must understand contracts and real estate documents to clearly explain the materials and answer questions raised by residents or board members.
“The role of an effective community association manager is a complex position that requires a unique blend of skills and characteristics,” said Australia-based Michelle Cummins, who is the Chief People & Client Support Officer at MaxSoft Group as well as Director at Strata Community Association Australasia and Director at Strata Community Association Victoria. Cummins went on to describe some of the essential characteristics and traits that an HOA manager must possess including optimism, kindness, good presentation skills and being “other-person focused.”
“An optimistic outlook can be a game-changer when dealing with challenging situations. It helps you focus on solutions rather than problems, which is crucial when you’re responsible for multiple stakeholders,” said Cummins. “Kindness fosters a positive environment, making it easier to work with vendors, Boards, and homeowners. Good presentation skills and
effective communication is key; from running annual general meetings to explaining financial statements, a good manager must be clear and engaging.”
Cummins describes “other-person focused” as being empathetic and focused on the needs of others which is critical to building strong relationships. And similarly, she noted that “intelligence isn’t just about IQ; it’s also about emotional intelligence and the ability to adapt and learn.”
In addition, an effective and compassionate CAM must have an expansive skill set that includes an array of “soft” skills. It’s imperative CAMs have excellent people and interpersonal skills, strong customer service and communications skills, and the ability to listen and collaborate in order to solve problems between residents, homeowners and Board members.
“Credentialed managers demonstrate excellent communication skills and customer service with the ability to perform the duties set forth by their Boards or residents with promptness, accuracy and integrity,” said Jennifer Andal, CMCA, AMS, PCAM, who is the Director of Better Communities in Dubai. “It’s so important for managers to be able to negotiate and understand the laws and be able to find middle ground for their stakeholders. Trusted managers are transparent with their Boards and admit when they make a mistake while offering a solution as they need the support of their Board to carry out their duties.”
Enhancing Soft Skills
Each year, Rhonda Drews, PCAM, who is a Vice President with Premier Community Management, spearheads the CAI-Coachella Valley (CAI-CV) Chapter Community Association Manager Day event for its Chapter managers. Drews shared the seven categories that provide the basis of the skills and knowledge managers need to be effective; these categories rely heavily on having strong “soft” skills. The following outline these important areas and are excerpted from the CAI-CV Chapter Committee’s CAM Day materials:
Leadership – A good HOA manager must be confident enough to discuss best practices and not let others intimidate them. Some Board members will be very opinionated, and you as the manager should know how to respond to them in a helpful and constructive way. A manager should be able to act as the HOA’s leader as well as know when to delegate responsibilities to others.
Professionalism – Professionalism means more than putting on a business suit every morning. Professionalism includes written, verbal, and physical presentation of yourself. A professional manager will remain calm in tense circumstances, won’t raise their voice, or show frustration as this will typically escalate situations. Having conflict resolution skills is a plus too, as it will help you resolve issues without needing legal intervention. Additional traits are: being accountable and taking responsibility for yourself as well as displaying emotional intelligence, accepting feedback, criticism, and building interpersonal relationships.
Communication – Communication is key, especially when it comes to community association management. A strong manager must communicate daily with their Board, residents, and business partners, and must be able to properly listen and respond to others and clearly articulate their thoughts. Additional communication skills include using proper email etiquette, punctuation, vocabulary, proactively communicating, and responding in a timely manner. A strong manager should be able to interact well with all types of individuals, including residents, the Board, and business partners, despite any differences in background, opinions, or beliefs. If a manager has conflicting thoughts, they can still explain their side — but in a way that is neutral and respectful to all parties involved.
Managers must also be prepared to say no to something without making it sound negative and/or spinning a bad light on management and/or the Board. It’s crucial that managers be good listeners. After all, communication is one of the biggest components of community management. Many people will come to you with their concerns (sometimes angry concerns), and you should have the patience to listen and try to understand each member’s situation so you can help effectively find solutions.
Community Association Governance – Managers must be well-versed in the workings of their HOA(s), and its governing documents. This includes staying up to date on Federal and State laws regarding HOA communities, which is so important for ensuring the HOA is running according to the law, their governing documents, and the management contract. A good manager will be proactive and aim to serve their client to their fullest ability and take pride in the work they produce. An HOA manager doesn’t need to be a professional accountant, but it’s necessary to have a general understanding of accounting. This goes a long way when maintaining the monthly, quarterly, and yearly HOA budgets. Your Boards should be able to rely on your recommendations when it’s time to make important financial decisions for the community.
Business Partner Relations – Business partners are your allies. A community association manager should respect their business partners and rely on their expertise. It’s not necessary to have the specific knowledge of the various trades, but it helps to have general understanding of the work or service being provided and to be able to effectively communicate the needs of the project/community to the business partner. A strong manager should get to know the general process of each service or maintenance component which will make communication more successful between you and your business partner. RFP’s should be requested to allow for appropriate response times and not burden the tradesperson. The manager will be able to understand the expected time period and rate for projects and respond timely and appropriately to ensure the RFP is received in good order. A good manager will prepare bid comparisons for the Board upon the completions of the bidding process.
Conflict Management – When running an HOA, managers will have to deal with a diverse group of people. There will be disagreements and opposing views on correct procedures. You may have neighbor to neighbor disputes and there are other multiple situations that may arise that will require a manager to mediate a situation. Dispute resolution is an integral part of HOA community management duties.
A successful HOA manager will know how to negotiate between parties and help them all come to a compromise. No one will get everything they desire, of course, but proper mediation can leave people happy enough with the results and feel like their opinion has been heard and considered. The relationship between the manager and the Board members is crucial to the success of the community. Apart from that, it’s important to be a manager that they can trust. When there is trust, the Board and manager become more productive and efficient. Through this collaboration, good managers are able to meet the needs of their community and its residents; confidentiality and neutrality are important traits as well.
Time Management – Having many tasks can be overwhelming for anyone. However, a good manager will be able to handle multiple HOA responsibilities and tasks at the same time. Attending to one matter at a time is ideal, but often times unrealistic. Situations or certain periods of time, such as “in-season,” will arise that will require managers to multitask in order to meet everyone’s needs. There will always be a never-ending list of tasks, and managers need to find ways of handling them. Time management also involves setting boundaries that allow a manager to have a better quality of life and hopefully less stress. Understanding and practicing work life balance is key for any successful manager.
Resource Corner
Making use of the wide variety of resources available to managers is critical to staying on top of industry news, events, and any changes arising in the profession. The Community Associations Institute (CAI), its website (www.caionline.org) and local CAI Chapters also offer an array of resources and networking and professional development opportunities. To find a local chapter go to: https://www.caionline.org/Chapters/Pages/Find-A-Chapter.aspx
Below is a sampling of industry resources.
SmartBrief – Stay on top of industry news by subscribing to the Community Association SmartBrtief, a free, weekly e-mail newsbrief specifically designed for community association managers. CAMICB offers this complimentary resource aimed at bringing readers a quick, two-minute read that will help managers keep up-to-date with the latest news and trends in the profession. Similarly, be sure to follow the CMCACorner Blog, a platform to read about the intersections of business, industry trends, continuing education, and professional development in community association management.
Management Company Websites – Many management companies have blogs, case studies and other articles available to the public that cover a wide-range of topics and often showcase real life examples of managers in action.
CAI Exchange – An online forum that allows members to collaborate and connect with colleagues. Topics range from emergency notification systems to budgeting for insurance in the coming year to managing board member actions and everything in between.
Common Ground – CAI’s flagship magazine that provides in-depth information and examples on how volunteers and professionals can improve their communities. Select content available to nonmembers.
Community Manager – CAI’s bi-monthly newsletter for community association managers that covers topics like technology, condominium and portfolio management, and professional development. Select content available to non-members.
The Foundation for Community Association Research – The Foundation supports research and develops publications on a variety of topics that can help managers develop more effective and harmonious community associations. FCAR produces publications that include the Community Association Fact Book, Best Practices Reports, Catalyst, the Foundation’s newsletter, and more.
CAI Chapter Newsletters – CAI has 63 chapters worldwide, including Canada, the Middle East and South Africa. Managers should visit their local chapters’ website as many of these chapters produce newsletters, blogs and other forms of communication that can be valuable resources.
HABITAT – is an independent publication that mixes storytelling and service articles to cover issues of co-op/condo living and management concerns from the perspectives of board directors, community association managers and property managers. Per its website, “HABITAT provides credible, objective, substantial coverage – readable, informative, human-interest stories to illustrate and educate our readers on how people effectively govern and manage their associations and successfully contend with the complex issues of co-op/condo living.”
HOAleader.com – HOAleader.com was created to support the dedicated community of association managers and other professionals who work to realize the potential of their association—Board and committee members, property managers, attorneys, financial professionals, insurance professionals, developers, vendors, and homeowners. Among other things, it offers legal compliance help, advice on best practices, and practical tips, tools and sample forms.
A Growing Career For A Growing Industry
Community association management is a young profession that has experienced staggering growth since its beginning just over 40 years ago. According to U.S. government reports, in 1970, there were approximately 10,000 community associations. By 2020, that number has grown to more than 350,000 community associations, home to nearly 74 million people. Housing construction statistics show common interest developments are the fastest-growing segment of residential home construction, and rapid growth is expected to continue.[1]
The nearly 74 million people in the United States who live in covenant-protected communities rely largely on CMCA certification as proof of ethical, knowledgeable, professional community association management and CAMICB is proud to support the highest level of professionalism in the field.
What It Means And What It Takes To Be An Effective Community Association Manager is the first in a series of articles, produced by CAMICB staff, that delve into the important issues and topics affecting community association managers.
[1] Opportunity Knocks – Opening the Door to Careers in Community Association Management, a guide from the Foundation for Community Association Research, Community Associations Institute, and the Community Association Managers International Certification Board https://www.caionline.org/LearningCenter/CareerCenter/Pages/Excel.aspx
After a year of intense grassroots efforts, the board at New Hampshire House, a 139-unit condo in Rego Park, Queens, finally succeeded in persuading owners to take out a $3 million loan to repair the building’s facade. The board’s success means the condo will finally be able to perform the necessary repairs mandated under the Facade Inspection Safety Program (FISP), something it had been unable to do previously.
The building’s last facade inspection in 2018 revealed the need for an estimated $1.5 million in repairs. Without the funds available, the building needed to take out a loan. The condo’s bylaws require the board to secure approval for any loan above $100,000 from a supermajority of the owners, but it could not secure the votes. Unable to make the repairs, the board didn’t file the report required by FISP, and maintenance of the exterior brickwork was neglected. Some apartments are now seeing interior water damage during heavy rains because of the deferred maintenance. “Problems don’t go away because you don’t do repairs,” says David Cohen, an account executive at Kaled Management and the condo’s managing agent. “They just get worse.” The condo’s noncompliance has also resulted in more than $60,000 in penalties for the building over the past six or seven years.
Since the last inspection, five more freeze-thaw cycles have taken their toll on the building’s brickwork. Factoring in a 30% increase in the costs of materials and labor, the estimated repair costs now stand at $3 million. Feeling the urgency, the board called a combined annual and special meeting in 2022, seeking the required 66.7% affirmative vote of a loan to cover the costs. It faced two large challenges that unfortunately it couldn’t overcome: a lot of apartments are sublet and the building has 70% absentee owners. “A lot of these people aren’t at the building and think of the apartments as an asset they can make rental income from,” Cohen says.
Not to be deterred, Helene W. Hartig, owner of Hartig Law and the condo’s attorney, says a decision was made to keep the meeting open for a year to allow people who didn’t participate to send in their votes. That gave the board and condo’s property management team an opportunity to intensify their grassroots efforts to get the votes. “During that year we bombarded the owners with information,” Cohen says. That included knocking on doors, writing letters, organizing meetings, sending memos and emails, and posting notices in the building.
The unit-owners needed education on FISP compliance, the impact of rising interest rates and the link between Fannie Mae’s new lending guidelines and capital repairs. “Not being able to do building repairs can hit people in many ways, including their ability to refinance, and their ability to sell,” Hartig says. Another key to unlocking votes was making sure literature was accessible to people without English as a first language. Multilingual members of the board translated the communications into Mandarin and Russian to reflect the diversity of languages spoken by owners.
In February, two weeks before the 2022 meeting formally closed, the board managed to get 70.95% of the owners to approve a $3 million loan, and it closed a month later. Only 2.5% of unit-owners voted against the loan and 26% did not vote at all.
For buildings with similar challenges, Cohen says it’s important to communicate early and make sure your communications are getting through. Unfortunately, the delay in securing the loan meant the condo lost out on a more favorable interest rate. “When we started this, the rates for loans were in the 3% range,” Cohen says. The $3 million loan, secured from the National Cooperative Bank, has a rate of 6.49%. It will be paid off with a 10-year assessment, which ranges between $200 and $400 per unit per month depending on the ownership interest. The good news is there’s no prepayment penalty, so if the cost of the work is less than $3 million, funds can be repaid with no penalty and the assessment can be reduced.
While technology has enabled unprecedented connectivity and collaboration, a multilingual workforce remains vital to succeed in our increasingly globalized world. But unfortunately, language remains a critical hurdle businesses still need to overcome. Research has shown that full literacy in another language brings substantial economic benefits. Nine out of 10 U.S. employers report reliance on US-based employees with language skills other than English.
Despite this, many employers report that their employees are unable to meet foreign language needs, resulting in lost opportunities and business. But companies that can overcome these challenges can gain a competitive advantage in a competitive market. Here’s why.
Benefits of multilingualism in the workforce
A multilingual workforce means that a company employs individuals proficient in more than one language. Working at a Spanish language teaching school in the US, I’ve seen firsthand how being multilingual can be a game-changer.
Cognitive development/problem-solving skills
Polyglots have greater cognitive flexibility, enhancing their creative thinking and problem-solving abilities. Research shows that people fluent in multiple languages tend to make more rational and impartial decisions, highlighting their objective decision-making approach, which can be a tremendous asset in a professional setting. For instance, having a multilingual human resources team can enhance recruitment decisions.
Moreover, multilingual employees have better communication skills overall and can understand the intentions and perspectives of others. Suppose accountants can fluently discuss financial reporting in various languages. In that case, they can effectively communicate with potential investors and stakeholders from different countries, paving the way for new opportunities and increased growth.
The ability to navigate programming languages with English keywords like “if” and “function” as a non-English speaker demonstrates how being multilingual can influence cognitive development. Furthermore, as a Spanish speaker, I can access programming content in Spanish, communicate and exchange ideas with Spanish-speaking programmers, and read code in Spanish with variable and function names such as “crearUsuario($usuario1).”
Greater diversity in the workspace
The perks of speaking multiple languages don’t just lie in the ability to communicate but also represent a unique culture, way of thinking and set of values. With employees fluent in more than one language, companies can tap into this wealth of knowledge and experience to create innovative products and services that cater to different cultural preferences and needs.
Imagine having numerous Spanish speakers on your team. In that case, you could tap into the Latin American market more easily than other companies. Your employees would be a great help in creating innovative products that could satisfy the region’s needs.
Improved employee retention
Fostering a multilingual workforce can improve employee retention; enabling employees to speak their mother tongue makes them feel valued, understood and included, encouraging a sense of comfort and engagement among employees and increasing job satisfaction and loyalty. Several companies are now integrating multilingual support into their recruitment and training processes by training employees in their native language, offering interpreters for business meetings and ensuring that all materials distributed to employees are translated into the appropriate languages.
How businesses can encourage multilingualism
By implementing the following tips, you can showcase your dedication to nurturing a more inclusive and diverse workplace and promoting language and personal development among your staff.
Online language training tools: Popular examples that employees can access to learn or improve their language skills are Duolingo, Coursera and FluentU. These tools can be especially beneficial for remote employees.
Language classes as an employee benefit: This is an effective way to incentivize and support employees in their language-learning journeys. These classes can be conducted in person or online. They can be particularly beneficial for remote workers who live in a country where a different language is spoken from the company’s primary language.
Encourage the use of multiple languages in the workplace: Employers can offer language support for those who need to become more fluent in the language of the workplace, such as language training or translation services.
Language exchange programs: Language exchange programs can pair employees who speak different languages to practice and converse in their respective languages. Another approach is establishing language exchange groups, which offer opportunities for employees to regularly practice their language skills and engage in conversations in a supportive environment.
Rewards: Rewarding employees who hit learning milestones can motivate them to use and improve their language skills.
The Community Associations Institute released the new Reserve Study Standards last May to provide communities with an improved outline for effective reserve planning. The updated study includes an emphasis on structural inspections and maintenance. A task force was created after the tragic collapse of the Champlain Towers in 2021 to address specific issues that came to light, and the three main issues addressed and incorporated into the newly released Reserve Study Standards are maintenance, building inspections (structural inspections), and inclusion of long-life components.
The purpose of the Reserve Study Standards is to inform and guide the reserve study provider, such as a Reserve Specialist® (RS), with the minimum requirements necessary for the preparation of a reserve study. A reserve study can be prepared for several reasons throughout the life cycle of a community, beginning prior to construction and initial sales through community maturity. At each stage, the reserve study recommends the funding necessary to sustain the community. Originally published in 1998, these Reserve Study Standards provide a consistent set of terminology, calculations, and expectations so reserve study providers and those they serve together can build a safe and successful future for millions of community association homeowners. It is recognized that, in addition to the reserve study, a proactive preventive maintenance plan and ongoing periodic structural inspections should be incorporated into the community’s long-term planning to properly evaluate and budget for the ongoing care of the common area components as well as the structural safety of the community. To keep the reserve study current and reflect the ongoing changes to the components and the financial needs of the community, the reserve study should be updated on a regular basis.
Fifty-eight percent of employees say their organization has asked workers to take on additional responsibilities, according to Gallup’s first-quarter survey of the U.S. workforce.
One consequence of a labor shortage is a higher demand for individual worker productivity. Employers look to their current workforce to fill the gaps of essential job openings that remain unfilled.
However, the risk is increased employee stress and burnout. When employees say that their organization has asked them to take on additional responsibilities, they are also:
2.5x as likely to feel burned out at work very often or always
55% more likely to watch for or actively seek a new job
39% less likely to be engaged at work
half as likely to think their employer cares about their wellbeing
Feedback loop: Employers are in danger of overloading their people, leading to increased sick days, disgruntled employees and departures, making their workforce problems even worse than before.
Fit New Work to Individual Strengths and Aspirations
The current labor shortage is unlikely to change anytime soon.
Forty-eight percent of senior leaders and team managers say that their organization is hiring new people and expanding the size of their workforce.
Forty-four percent of Fortune 500 CHROs agree.
In order to grow, employers need to increase the productivity of their people — without burning them out or driving them to competitors. That means maximizing human potential in sustainable ways.
Keep this in mind: New responsibilities can supercharge career development, if communicated clearly and structured carefully. When possible, roles and responsibilities should be customized to match individual talents to organizational needs. Team leaders should assign new work with an eye toward individual strengths. When people have the chance to do things they are naturally good at, they are less stressed, even as they accomplish more.
By Lydia Pelliccia and CAMICB Executive Director, Matthew Green, CAE
Knowledgeable, committed community association managers are the professional mainstay of the communities they serve, providing the skills and expertise that are essential to the effective management of their homeowner associations. ?These managers are dedicated to their career and take specific paths to further their professional knowledge and skill sets. For example, holding the Certified Manager of Community Associations (CMCA) credential – offered by the Community Associations Managers International Certification Board (CAMICB), is a mark of proficiency and high quality and is the only internationally accredited certification program in the world for managers of homeowner and condominium associations and cooperatives.
CMCA credentialed managers show their commitment to professionalism and staying on top of industry issues and changes in the field by complying with continuing education requirements in order to maintain their credential. This is done through a process called recertification and is the cornerstone of best practices in the credentialing industry. Recertification is an ongoing process designed to promote and prove continued competency in the community association management profession. This competency is demonstrated through participation in continuing education in the field of community association management by participation in at least 16 hours of continuing education coursework every two years.
Further, community association professionals may also choose to bolster their careers and expand their level of expertise in certain areas by earning a “specialty designation.” A “designation” is recognition of professional knowledge and expertise in a given subject matter or job skill. Certain specialty designations are offered through the Community Associations Institute (CAI) including, the Association Management Specialist (AMS), Large Scale Manager (LSM), Professional Community Association Manager (PCAM), Community Insurance and Risk Management Specialist (CIRMS) and Reserve Specialist (RS). This allows a community association professional to drill down into a specialized aspect of the business. In some cases, passing the CMCA examination is a prerequisite to applying for these designations, for example the PCAM and AMS.
Understanding the Role of a Community Association Manager
In broad strokes, the job of the CAM is part financial management, urban planning, facilities maintenance, community development, volunteer management, and project management.
Their role is to implement the policies set by the board of directors, oversee operations, services, and programs as laid out in the contract with the association, and provide information and advice to assist board members in their decision-making. Particularly, managers must be well-steeped in the details and nuances of guiding and advising their boards in specific areas that include meetings; governance, legal and ethical conduct; budgets, reserves, investments and assessments; financial controls; risk management and insurance; property maintenance; contracting; and, human resources.
Further, a strong credentialed manager must understand contracts and real estate documents to clearly explain the materials and answer questions raised by residents or board members.
“The role of an effective community association manager is a complex position that requires a unique blend of skills and characteristics,” said Australia-based Michelle Cummins, who is the Chief People & Client Support Officer at MaxSoft Group as well as Director at Strata Community Association Australasia and Director at Strata Community Association Victoria. Cummins went on to describe some of the essential characteristics and traits that an HOA manager must possess including optimism, kindness, good presentation skills and being “other-person focused.”
“An optimistic outlook can be a game-changer when dealing with challenging situations. It helps you focus on solutions rather than problems, which is crucial when you’re responsible for multiple stakeholders,” said Cummins. “Kindness fosters a positive environment, making it easier to work with vendors, Boards, and homeowners. Good presentation skills and
effective communication is key; from running annual general meetings to explaining financial statements, a good manager must be clear and engaging.”
Cummins describes “other-person focused” as being empathetic and focused on the needs of others which is critical to building strong relationships. And similarly, she noted that “intelligence isn’t just about IQ; it’s also about emotional intelligence and the ability to adapt and learn.”
In addition, an effective and compassionate CAM must have an expansive skill set that includes an array of “soft” skills. It’s imperative CAMs have excellent people and interpersonal skills, strong customer service and communications skills, and the ability to listen and collaborate in order to solve problems between residents, homeowners and Board members.
“Credentialed managers demonstrate excellent communication skills and customer service with the ability to perform the duties set forth by their Boards or residents with promptness, accuracy and integrity,” said Jennifer Andal, CMCA, AMS, PCAM, who is the Director of Better Communities in Dubai. “It’s so important for managers to be able to negotiate and understand the laws and be able to find middle ground for their stakeholders. Trusted managers are transparent with their Boards and admit when they make a mistake while offering a solution as they need the support of their Board to carry out their duties.”
Enhancing Soft Skills
Each year, Rhonda Drews, PCAM, who is a Vice President with Premier Community Management, spearheads the CAI-Coachella Valley (CAI-CV) Chapter Community Association Manager Day event for its Chapter managers. Drews shared the seven categories that provide the basis of the skills and knowledge managers need to be effective; these categories rely heavily on having strong “soft” skills. The following outline these important areas and are excerpted from the CAI-CV Chapter Committee’s CAM Day materials:
Leadership – A good HOA manager must be confident enough to discuss best practices and not let others intimidate them. Some Board members will be very opinionated, and you as the manager should know how to respond to them in a helpful and constructive way. A manager should be able to act as the HOA’s leader as well as know when to delegate responsibilities to others.
Professionalism – Professionalism means more than putting on a business suit every morning. Professionalism includes written, verbal, and physical presentation of yourself. A professional manager will remain calm in tense circumstances, won’t raise their voice, or show frustration as this will typically escalate situations. Having conflict resolution skills is a plus too, as it will help you resolve issues without needing legal intervention. Additional traits are: being accountable and taking responsibility for yourself as well as displaying emotional intelligence, accepting feedback, criticism, and building interpersonal relationships.
Communication – Communication is key, especially when it comes to community association management. A strong manager must communicate daily with their Board, residents, and business partners, and must be able to properly listen and respond to others and clearly articulate their thoughts. Additional communication skills include using proper email etiquette, punctuation, vocabulary, proactively communicating, and responding in a timely manner. A strong manager should be able to interact well with all types of individuals, including residents, the Board, and business partners, despite any differences in background, opinions, or beliefs. If a manager has conflicting thoughts, they can still explain their side — but in a way that is neutral and respectful to all parties involved.
Managers must also be prepared to say no to something without making it sound negative and/or spinning a bad light on management and/or the Board. It’s crucial that managers be good listeners. After all, communication is one of the biggest components of community management. Many people will come to you with their concerns (sometimes angry concerns), and you should have the patience to listen and try to understand each member’s situation so you can help effectively find solutions.
Community Association Governance – Managers must be well-versed in the workings of their HOA(s), and its governing documents. This includes staying up to date on Federal and State laws regarding HOA communities, which is so important for ensuring the HOA is running according to the law, their governing documents, and the management contract. A good manager will be proactive and aim to serve their client to their fullest ability and take pride in the work they produce. An HOA manager doesn’t need to be a professional accountant, but it’s necessary to have a general understanding of accounting. This goes a long way when maintaining the monthly, quarterly, and yearly HOA budgets. Your Boards should be able to rely on your recommendations when it’s time to make important financial decisions for the community.
Business Partner Relations – Business partners are your allies. A community association manager should respect their business partners and rely on their expertise. It’s not necessary to have the specific knowledge of the various trades, but it helps to have general understanding of the work or service being provided and to be able to effectively communicate the needs of the project/community to the business partner. A strong manager should get to know the general process of each service or maintenance component which will make communication more successful between you and your business partner. RFP’s should be requested to allow for appropriate response times and not burden the tradesperson. The manager will be able to understand the expected time period and rate for projects and respond timely and appropriately to ensure the RFP is received in good order. A good manager will prepare bid comparisons for the Board upon the completions of the bidding process.
Conflict Management – When running an HOA, managers will have to deal with a diverse group of people. There will be disagreements and opposing views on correct procedures. You may have neighbor to neighbor disputes and there are other multiple situations that may arise that will require a manager to mediate a situation. Dispute resolution is an integral part of HOA community management duties.
A successful HOA manager will know how to negotiate between parties and help them all come to a compromise. No one will get everything they desire, of course, but proper mediation can leave people happy enough with the results and feel like their opinion has been heard and considered. The relationship between the manager and the Board members is crucial to the success of the community. Apart from that, it’s important to be a manager that they can trust. When there is trust, the Board and manager become more productive and efficient. Through this collaboration, good managers are able to meet the needs of their community and its residents; confidentiality and neutrality are important traits as well.
Time Management – Having many tasks can be overwhelming for anyone. However, a good manager will be able to handle multiple HOA responsibilities and tasks at the same time. Attending to one matter at a time is ideal, but often times unrealistic. Situations or certain periods of time, such as “in-season,” will arise that will require managers to multitask in order to meet everyone’s needs. There will always be a never-ending list of tasks, and managers need to find ways of handling them. Time management also involves setting boundaries that allow a manager to have a better quality of life and hopefully less stress. Understanding and practicing work life balance is key for any successful manager.
Resource Corner
Making use of the wide variety of resources available to managers is critical to staying on top of industry news, events, and any changes arising in the profession. The Community Associations Institute (CAI), its website (www.caionline.org) and local CAI Chapters also offer an array of resources and networking and professional development opportunities. To find a local chapter go to: https://www.caionline.org/Chapters/Pages/Find-A-Chapter.aspx
Below is a sampling of industry resources.
SmartBrief – Stay on top of industry news by subscribing to the Community Association SmartBrtief, a free, weekly e-mail newsbrief specifically designed for community association managers. CAMICB offers this complimentary resource aimed at bringing readers a quick, two-minute read that will help managers keep up-to-date with the latest news and trends in the profession. Similarly, be sure to follow the CMCACorner Blog, a platform to read about the intersections of business, industry trends, continuing education, and professional development in community association management.
Management Company Websites – Many management companies have blogs, case studies and other articles available to the public that cover a wide-range of topics and often showcase real life examples of managers in action.
CAI Exchange – An online forum that allows members to collaborate and connect with colleagues. Topics range from emergency notification systems to budgeting for insurance in the coming year to managing board member actions and everything in between.
Common Ground – CAI’s flagship magazine that provides in-depth information and examples on how volunteers and professionals can improve their communities. Select content available to nonmembers.
Community Manager – CAI’s bi-monthly newsletter for community association managers that covers topics like technology, condominium and portfolio management, and professional development. Select content available to non-members.
The Foundation for Community Association Research – The Foundation supports research and develops publications on a variety of topics that can help managers develop more effective and harmonious community associations. FCAR produces publications that include the Community Association Fact Book, Best Practices Reports, Catalyst, the Foundation’s newsletter, and more.
CAI Chapter Newsletters – CAI has 63 chapters worldwide, including Canada, the Middle East and South Africa. Managers should visit their local chapters’ website as many of these chapters produce newsletters, blogs and other forms of communication that can be valuable resources.
HABITAT – is an independent publication that mixes storytelling and service articles to cover issues of co-op/condo living and management concerns from the perspectives of board directors, community association managers and property managers. Per its website, “HABITAT provides credible, objective, substantial coverage – readable, informative, human-interest stories to illustrate and educate our readers on how people effectively govern and manage their associations and successfully contend with the complex issues of co-op/condo living.”
HOAleader.com – HOAleader.com was created to support the dedicated community of association managers and other professionals who work to realize the potential of their association—Board and committee members, property managers, attorneys, financial professionals, insurance professionals, developers, vendors, and homeowners. Among other things, it offers legal compliance help, advice on best practices, and practical tips, tools and sample forms.
A Growing Career For A Growing Industry
Community association management is a young profession that has experienced staggering growth since its beginning just over 40 years ago. According to U.S. government reports, in 1970, there were approximately 10,000 community associations. By 2020, that number has grown to more than 350,000 community associations, home to nearly 74 million people. Housing construction statistics show common interest developments are the fastest-growing segment of residential home construction, and rapid growth is expected to continue.[1]
The nearly 74 million people in the United States who live in covenant-protected communities rely largely on CMCA certification as proof of ethical, knowledgeable, professional community association management and CAMICB is proud to support the highest level of professionalism in the field.
What It Means And What It Takes To Be An Effective Community Association Manager is the first in a series of articles, produced by CAMICB staff, that delve into the important issues and topics affecting community association managers.
[1] Opportunity Knocks – Opening the Door to Careers in Community Association Management, a guide from the Foundation for Community Association Research, Community Associations Institute, and the Community Association Managers International Certification Board https://www.caionline.org/LearningCenter/CareerCenter/Pages/Excel.aspx
A variety of study aids are available to CMCA exam candidates online at CAMICB.org. Because CAMICB recognizes that people have different learning styles, multiple resources are available in various formats. A quick glance at those resources can be overwhelming. Here, we offer a roadmap designed to help you select and properly use those resources towards a successful outcome.
STEP 1. CMCA Study Guide. Download this FREE guide for an overview of how the CMCA exam was developed and how it’s structured. This is important to developing a study strategy. Here, you will also find the key to your studying success: The CMCA Knowledge
8 Knowledge Areas
Areas. You will be evaluated on these 8 knowledge areas, and understanding your strengths and weaknesses in each area, as well as how each knowledge area is weighted, will help you properly prepare a solid study plan.
STEP 2. CMCA Handbook. Download the FREE handbook for an overview of the program, paying particular attention to:
Section 2: Taking the CMCA Exam highlights the policies and procedures of the exam.
Section 3: CMCA Examination Content and Study Materials offers just that, as well as strategies for standardized test-taking.
STEP 3. If you took CAI’s M-100: The Essentials of Community Association Management, you are not fully prepared to sit for the CMCA exam. The M-100 will provide you with concrete knowledge (i.e., terms and definitions) but will not give you the knowledge to apply those terms and definitions to concepts. For example, What is a Quorum? is not a question you will see on the CMCA exam. You may, however, see a question like this, Quorum requirements conflicts are resolved by which of the following? That doesn’t mean you can skip this step. It’s still important to know the definitions in order to be able to apply them.
STEP 4. Quizlet is a FREE online tool that uses fun games and exercises to test your concrete knowledge. If after reviewing the M-100 course material, you find that your knowledge of terms and definitions is lacking, Quizlet is an excellent way to help you master those key terms and phrases, and prepare you for the next step in your study plan.
STEP 5. Best Practices Reports are FREE resource guides courtesy of the Foundation for Community Association Research. These Reports will help you gain applied knowledge in key areas found on the exam. Each report also contains case studies to help you understand how best practices are applied in real life situations, which is key to grasping an applied knowledge of these topics. If you’re a seasoned manager, spend a little extra time here. What you’ve learned on the job, may not be deemed best practices in the industry.
STEP 6. The CMCA Study Kit is available for purchase from the CAI Bookstore. A great tool for developing applied knowledge, you may purchase individual titles or the entire package depending on your needs.
STEP 7. CMCA Practice Exam is available online at a cost of $25 for one attempt and $40 for two. The Practice Exam includes questions that have been rotated off the exam and offers real time feedback on whether you were right or wrong on a question and why, offering real-world insight into the CMCA exam experience.
All of these materials to prepare you for the CMCA Exam can be found at CAMICB.org on the Exam Preparation web page. We encourage you to spend at least 6-8 weeks preparing for the Exam, and if you have any questions you can contact us at 866-779-CMCA or info@camicb.org.
We’d like to hear from managers who are studying for the exam. What’s working for you? What’s not? Please use the Comments section to let us know how you’re doing!
In the wake of the second- and third-largest bank collapses in U.S. history — and the ensuing tumble of stock markets around the world — jittery co-op and condo boards in New York City are asking a chilling question: Is our money safe?
The answer, most likely, is yes — given the Federal Deposit Insurance Corporation’s backing of all deposits up to $250,000, the federal government’s promise to make all depositors whole at the two failed banks (without using taxpayers’ money), plus the fact that the big national banks and most large regional banks are on solid financial footing. But that doesn’t mean boards don’t need to be careful when they park their money, either for operating budgets or reserve funds.
Experts from the banking, legal and property management professions offer the following tips.
“Your property manager should check out the financial health of a bank before you deposit your money there,” says Adrian Martin, a managing director at Webster Bank.
While most property managers are not trained financial analysts, Martin and other bankers note that much information is public record, including earnings reports, credit ratings, portfolio diversity and whether a bank is open to risk, such as the cryptocurrency depositors who helped bring down Silicon Valley Bank in California and Signature Bank in New York. Also, the percentage of a bank’s deposits that are not F.D.I.C-insured can be a barometer of potential trouble. At 93.9%, Silicon Valley ranked second highest in the nation, and at 89.7%, Signature ranked fourth highest, according to Standard & Poor’s. Bank of America is at a comparatively modest 47.1%.
“I advise boards not to just look at the interest rates a bank is offering,” says Thomas Thibodeaux, chief financial officer at New Bedford Management, who has a banking background. “I resist when boards tell me about an online bank that’s paying high interest rates. I’ve advised boards it’s not a good idea to put their money in a bank nobody’s heard of. I don’t need to see a branch on every corner, but I do want to see profitability and stability. We want a conservative bank. Our bank gives us quarterly financial reports, and we look at them. Property managers should pay attention to that.”
Personal relationships also matter. “Boards should be working with a bank that has a real-estate team that’s familiar with the needs of co-ops and condos,” Thibodeaux adds. “You want to be able to speak to a banker.”
Many co-op boards that refinanced their underlying mortgages when interest rates were at historical lows are now holding sizable funds. One way to keep that money safe is to use a service that deposits the board’s money in a nationwide network of F.D.I.C.-insured banks, with a maximum $250,000 per bank. This option offers the trifecta of protection, interest accrual and liquidity. Experts agree that protecting funds should be a higher priority than seeking a high return on investment. Another option for a board with $1 million is to open $250,000 accounts at four banks. But that can lead to headaches.
“Boards and management companies change, and those arrangements can become very problematic,” Thibodeaux says. “You can lose track of who the signatories are. You would rather deal with one representative inside one bank.”
Steven Sladkus, a partner at the law firm Schwartz Sladkus Reich Greenberg Atlas, spent a recent day dealing with a representative inside Signature Bank’s midtown offices — trying to withdraw sizable accounts held by his individual clients (not co-op or condo boards).
“I had to fight for my clients’ money because the bank was inundated with thousands of requests to withdraw money,” Sladkus says. “As fiduciaries, co-op and condo boards want to take utmost care where their money is placed. The bank might offer a high interest rate, but you can’t get a banker on the phone. It’s also helpful if you have financial people on the board who can chime in. At the very least, consult a financial professional if you’re unsure where to put your money. There’s nothing shameful in seeking professional advice.”
Are you putting your most valuable assets in the hands of the most qualified professionals?
As a homeowner, it’s in your best interest to protect one of the biggest investments you’ll ever make. Therefore, it’s critical to know if your community is managed by a Certified Manager of Community Associations (CMCA). CMCAs manage condominium & homeowner associations, housing cooperatives, resort communities and commercial tenant associations.
If you serve as a board member, trustee, or volunteer leader working with your homeowner’s association, condominium association, or cooperative, your decisions have a profound ?nancial impact on your community. There are more than 20,000 quali?ed community association managers who hold the CMCA credential. Hiring one of them to manage your association ensures you have the best resources available to make important decisions about reserves, maintenance, insurance, budgets, governance, contracts, the law, rules enforcement, and more. Receiving professional, accurate advice and guidance on such issues can mean the difference between prosperity and disaster.
What a difference a credential makes!
About the CMCA Credential
The Certi?ed Manager of Community Associations (CMCA) credential is the only international certi?cation program developed solely for managers of homeowner and condominium associations and cooperatives. The CMCA is awarded to individuals who have demonstrated core competency in the knowledge areas required to perform effectively as a community association manager and who have made a commitment to continuing education and the highest standards of professional conduct.
Governing board members and homeowners are encouraged to seek committed, quali?ed professionals to manage their communities. Hiring a CMCA ensures expert management by someone who has demonstrated the specialized skills required to lead a community association successfully.
The CMCA program is dual accredited. The National Commission for Certifying Agencies (NCCA) accredits the CMCA program for meeting its U.S.-based standards for credentialing bodies. The ANSI National Accreditation Board (ANAB) accredits the CMCA program for meeting the stringent requirements of ISO/IEC 17024 Standard, the international standards for certification bodies. The program’s dual accreditation represents compliance with rigorous standards for developing, delivering, and maintaining a professional credentialing program. It makes the CMCA credential one of a small number of dual-accredited credentialing bodies and the only accredited certification for community association management professionals around the world. It is a great source of pride and a strong testament to the strength and value of the CMCA credential.?
Do you know if your manager is CMCA-certi?ed? Search our Directory of Credentialed Professionals at www.camicb.org/?nd-a-cmca.
STEP 4. 
