Tag Archives: real-estate

Proper Vendor Management – A Strategic Necessity

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By Lydia Pelliccia and Matthew Green, CAE

We had the privilege of gleaning many insights from Cathleen Dunn, CMCA, AMS, LSM, PCAM, into this particular topic. She is the community association manager for A Pocono Country Place, a 4,500 self-contained, private residential community located in the Pocono Mountains, in Monroe County, Pennsylvania and is a member of the CAMICB Board of Commissioners.

Managing vendors is a critical component of a community association manager’s role and is essential for maintaining the physical condition, financial health, and overall satisfaction of a homeowners association, which in turn reflects the professionalism and competence of the community association manager. Properly managing and overseeing vendors ensures quality of services, cost management, legal and contractual compliance, residence satisfaction and supports efficiency and problem resolution.

“In the ever-evolving landscape of community association management, the role of reliable and vetted vendors in homeowners associations (HOAs) cannot be overstated,” said Cathleen Dunn, CMCA, AMS, LSM, PCAM. “From maintenance and landscaping to public safety and technology services, vendors are pivotal in ensuring the smooth operation and enhancement of our communities. Further, the importance of thoroughly vetting and implementing the best vendors is both a strategic necessity and a fiduciary responsibility that falls to the community association manager.”

Quality of Services Has A Lasting Impact

When essential services such as landscaping, maintenance, security, and repairs are not carried out properly, the effects can have a lasting impact. Ensuring that these vendors perform their tasks effectively and to a high standard is crucial for maintaining the community’s appearance, safety, and functionality. Poor vendor performance can lead to dissatisfaction among homeowners and potentially costly repairs in the future. Said Dunn, “Vendors responsible for maintenance, repairs, or landscaping must deliver work that meets high standards to maintain the appeal and functionality of the association. Subpar performance can lead to dissatisfaction, decreased property values, an increase in complaints, with members feeling they are not getting their money’s worth.”

Legal and Contractual Compliance Matters

Vendors operate under contracts that define the scope of work, payment terms, and performance expectations. Community association managers must oversee these contracts to ensure vendors meet their obligations. This includes handling disputes, ensuring compliance with local laws and regulations, and protecting the association from potential legal issues. “Choosing vendors with a proven track record and proper certifications minimizes the risk of legal issues, accidents, or compliance violations,” said Dunn. “The reputation of your homeowners association is influenced by the vendors you employ. High-quality vendors contribute positively to the community’s image.”

Efficiency, Problem Resolution And Risk Management

Vendors must be well-managed to ensure they are responsive to the community’s needs. Whether it’s addressing an emergency repair or completing routine maintenance, community association managers coordinate with vendors to resolve issues quickly and efficiently, minimizing disruption to residents. Further, poorly managed vendors can pose risks to the association, such as safety hazards, liability issues, or financial losses. By carefully selecting, monitoring, and managing vendors, community association managers help mitigate these risks and ensure the community operates smoothly and safely.

Ensuring Resident Satisfaction 

The services provided by vendors directly impact the quality of life for residents. For example, well-maintained common areas, timely snow removal, and responsive repair services all contribute to a positive living environment. Effective vendor management ensures these services meet residents’ expectations, which helps maintain high levels of resident satisfaction as well as property values.

Cathleen Dunn’s Tips For Properly and Thoroughly Vetting Vendors

  • Always establish comprehensive criteria for evaluating potential vendors. This should include not only cost but also experience, references, reputation, compliance with industry standards, financial stability, and licenses (if appliable). A well-defined set of criteria ensures that all vendors are assessed on a level playing field and helps in making informed decisions.
  • Solicit detailed proposals and quotes from multiple vendors. This not only provides a clearer picture of the costs involved but also offers insight into the vendors’ understanding of your needs and their approach to fulfilling them. You can then compare them – apples to apples – on a spreadsheet.
  • Craft clear, comprehensive contracts that outline the scope of work, performance expectations, deadlines, and payment terms. Include clauses for accountability, dispute resolution, impact fees, and termination conditions. A well-drafted contract protects both the association and the vendor, ensuring mutual understanding and agreement.
  • Engaging with unreliable or underperforming vendors can result in hidden costs, such as the need for frequent repairs, and additional oversight expenses. Conversely, high-quality vendors, while sometimes more expensive, often provide long-term savings through durability, efficiency, and fewer complications. A thorough vetting process helps to identify vendors who offer the best value and fit for your association’s budget.
  • Once a vendor is engaged, establish a system for monitoring their performance and documenting satisfaction or dissatisfaction. Open communication and addressing issues promptly will ensure a high level of standard is maintained.

While vendor management can be a challenging part of the job for a community association manager, when done correctly and effectively it’s a mutually-beneficial relationship with material results for all parties involved – the vendors, community association manager, and residents who reside in these condominiums, housing cooperatives, resort communities, and commercial tenant associations.

In the community association management industry, the selection and management of vendors are integral to operational success and community member satisfaction. By implementing a rigorous vetting process and engaging with high-quality vendors, the community association manager can ensure that their communities receive the best possible service, manage risks effectively, and uphold the association’s reputation. 

Added, Dunn “As industry leaders, it is our responsibility to prioritize vendor excellence and to continuously strive for improvement in all aspects of community association management and oversight.”

Resource Corner

Making use of the wide variety of professional development resources available to managers is critical to staying on top of industry news, trends, best practices and any changes arising in the profession.  Below is a sampling of industry resources.

CAI’s Professional Services Directory – a comprehensive directory that allows users to search by product or service https://caidirectory.onlinemarketbase.org/.

CAI also offers Downloadable Resources for Community Operations and Management? which include sample forms and templates on topics such as bidding and contracting, maintenance, human resource management and more – https://www.caionline.org/CommunityManagers/Pages/Gate-Sample-Forms-and-Templates.aspx.

CAI’s Research Library – a CAI members-only library that contains over 3,000 articles on community and homeowner association, and condominium and cooperative issues https://www.caionline.org/LearningCenter/ResLib/Pages/default.aspx#k=vendor%20management. For example a search for “vendor management” retrieves an article that ran in Community Manager entitled Playing Matchmaker by Shirley Haskew, CMCA, AMS with a helpful preview that states the following: Matching up vendors with the various communities in your portfolio can be a little like playing Cupid: “Five-member board seeks caring, reliable landscaping company for long-term relationship.” While some managers recommend using the same vendor to do similar work at multiple communities, sometimes at discounted prices, I’ve received the best results when I was able to match communities with complementary vendors.

Companies that offer specific software solutions, such as vendor management tools, may be worth exploring. Examples include CINC Systems https://cincsystems.com/resources/faq/what-association-managers-should-look-for-when-vetting-vendors-and-contractors/

and VendorSmart, https://vendorsmart.com/vs/#/public/home. Note: some of these companies provide free blogs with relevant articles that offer tips on a wide variety of topics from preparing your HOA for Spring, to determining the best time to explore snow removal vendors.

CAI Exchange –  An online forum that allows members to collaborate and connect with colleagues. These informal discussions are extremely helpful in sharing innovative approaches to common and uncommon situations as well as best practices and advice.  Additionally, this forum is often helpful when managers need a quick question answered: For example, this recent question was answered within hours of its posting:  Q: “We hired a painter. We didn’t know he was going to use a sub-contractor(s) painter.  Should we ask for lien waivers from the sub-contractor(s)?”  A: “Yes, always get a lien waiver from both the contractor and subs before you make your (final) payment.”

Proper Vendor Management – A Strategic Necessity is the fifth 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.

Proper Vendor Management – A Strategic Necessity

Posted on by

By Lydia Pelliccia and Matthew Green, CAE

We had the privilege of gleaning many insights from Cathleen Dunn, CMCA, AMS, LSM, PCAM, into this particular topic. She is the community association manager for A Pocono Country Place, a 4,500 self-contained, private residential community located in the Pocono Mountains, in Monroe County, Pennsylvania and is a member of the CAMICB Board of Commissioners.

Managing vendors is a critical component of a community association manager’s role and is essential for maintaining the physical condition, financial health, and overall satisfaction of a homeowners association, which in turn reflects the professionalism and competence of the community association manager. Properly managing and overseeing vendors ensures quality of services, cost management, legal and contractual compliance, residence satisfaction and supports efficiency and problem resolution.

“In the ever-evolving landscape of community association management, the role of reliable and vetted vendors in homeowners associations (HOAs) cannot be overstated,” said Cathleen Dunn, CMCA, AMS, LSM, PCAM. “From maintenance and landscaping to public safety and technology services, vendors are pivotal in ensuring the smooth operation and enhancement of our communities. Further, the importance of thoroughly vetting and implementing the best vendors is both a strategic necessity and a fiduciary responsibility that falls to the community association manager.”

Quality of Services Has A Lasting Impact

When essential services such as landscaping, maintenance, security, and repairs are not carried out properly, the effects can have a lasting impact. Ensuring that these vendors perform their tasks effectively and to a high standard is crucial for maintaining the community’s appearance, safety, and functionality. Poor vendor performance can lead to dissatisfaction among homeowners and potentially costly repairs in the future. Said Dunn, “Vendors responsible for maintenance, repairs, or landscaping must deliver work that meets high standards to maintain the appeal and functionality of the association. Subpar performance can lead to dissatisfaction, decreased property values, an increase in complaints, with members feeling they are not getting their money’s worth.”

Legal and Contractual Compliance Matters

Vendors operate under contracts that define the scope of work, payment terms, and performance expectations. Community association managers must oversee these contracts to ensure vendors meet their obligations. This includes handling disputes, ensuring compliance with local laws and regulations, and protecting the association from potential legal issues. “Choosing vendors with a proven track record and proper certifications minimizes the risk of legal issues, accidents, or compliance violations,” said Dunn. “The reputation of your homeowners association is influenced by the vendors you employ. High-quality vendors contribute positively to the community’s image.”

Efficiency, Problem Resolution And Risk Management

Vendors must be well-managed to ensure they are responsive to the community’s needs. Whether it’s addressing an emergency repair or completing routine maintenance, community association managers coordinate with vendors to resolve issues quickly and efficiently, minimizing disruption to residents. Further, poorly managed vendors can pose risks to the association, such as safety hazards, liability issues, or financial losses. By carefully selecting, monitoring, and managing vendors, community association managers help mitigate these risks and ensure the community operates smoothly and safely.

Ensuring Resident Satisfaction 

The services provided by vendors directly impact the quality of life for residents. For example, well-maintained common areas, timely snow removal, and responsive repair services all contribute to a positive living environment. Effective vendor management ensures these services meet residents’ expectations, which helps maintain high levels of resident satisfaction as well as property values.

Cathleen Dunn’s Tips For Properly and Thoroughly Vetting Vendors

  • Always establish comprehensive criteria for evaluating potential vendors. This should include not only cost but also experience, references, reputation, compliance with industry standards, financial stability, and licenses (if appliable). A well-defined set of criteria ensures that all vendors are assessed on a level playing field and helps in making informed decisions.
  • Solicit detailed proposals and quotes from multiple vendors. This not only provides a clearer picture of the costs involved but also offers insight into the vendors’ understanding of your needs and their approach to fulfilling them. You can then compare them – apples to apples – on a spreadsheet.
  • Craft clear, comprehensive contracts that outline the scope of work, performance expectations, deadlines, and payment terms. Include clauses for accountability, dispute resolution, impact fees, and termination conditions. A well-drafted contract protects both the association and the vendor, ensuring mutual understanding and agreement.
  • Engaging with unreliable or underperforming vendors can result in hidden costs, such as the need for frequent repairs, and additional oversight expenses. Conversely, high-quality vendors, while sometimes more expensive, often provide long-term savings through durability, efficiency, and fewer complications. A thorough vetting process helps to identify vendors who offer the best value and fit for your association’s budget.
  • Once a vendor is engaged, establish a system for monitoring their performance and documenting satisfaction or dissatisfaction. Open communication and addressing issues promptly will ensure a high level of standard is maintained.

While vendor management can be a challenging part of the job for a community association manager, when done correctly and effectively it’s a mutually-beneficial relationship with material results for all parties involved – the vendors, community association manager, and residents who reside in these condominiums, housing cooperatives, resort communities, and commercial tenant associations.

In the community association management industry, the selection and management of vendors are integral to operational success and community member satisfaction. By implementing a rigorous vetting process and engaging with high-quality vendors, the community association manager can ensure that their communities receive the best possible service, manage risks effectively, and uphold the association’s reputation. 

Added, Dunn “As industry leaders, it is our responsibility to prioritize vendor excellence and to continuously strive for improvement in all aspects of community association management and oversight.”

Resource Corner

Making use of the wide variety of professional development resources available to managers is critical to staying on top of industry news, trends, best practices and any changes arising in the profession.  Below is a sampling of industry resources.

CAI’s Professional Services Directory – a comprehensive directory that allows users to search by product or service https://caidirectory.onlinemarketbase.org/.

CAI also offers Downloadable Resources for Community Operations and Management? which include sample forms and templates on topics such as bidding and contracting, maintenance, human resource management and more – https://www.caionline.org/CommunityManagers/Pages/Gate-Sample-Forms-and-Templates.aspx.

CAI’s Research Library – a CAI members-only library that contains over 3,000 articles on community and homeowner association, and condominium and cooperative issues https://www.caionline.org/LearningCenter/ResLib/Pages/default.aspx#k=vendor%20management. For example a search for “vendor management” retrieves an article that ran in Community Manager entitled Playing Matchmaker by Shirley Haskew, CMCA, AMS with a helpful preview that states the following: Matching up vendors with the various communities in your portfolio can be a little like playing Cupid: “Five-member board seeks caring, reliable landscaping company for long-term relationship.” While some managers recommend using the same vendor to do similar work at multiple communities, sometimes at discounted prices, I’ve received the best results when I was able to match communities with complementary vendors.

Companies that offer specific software solutions, such as vendor management tools, may be worth exploring. Examples include CINC Systems https://cincsystems.com/resources/faq/what-association-managers-should-look-for-when-vetting-vendors-and-contractors/

and VendorSmart, https://vendorsmart.com/vs/#/public/home. Note: some of these companies provide free blogs with relevant articles that offer tips on a wide variety of topics from preparing your HOA for Spring, to determining the best time to explore snow removal vendors.

CAI Exchange –  An online forum that allows members to collaborate and connect with colleagues. These informal discussions are extremely helpful in sharing innovative approaches to common and uncommon situations as well as best practices and advice.  Additionally, this forum is often helpful when managers need a quick question answered: For example, this recent question was answered within hours of its posting:  Q: “We hired a painter. We didn’t know he was going to use a sub-contractor(s) painter.  Should we ask for lien waivers from the sub-contractor(s)?”  A: “Yes, always get a lien waiver from both the contractor and subs before you make your (final) payment.”

Proper Vendor Management – A Strategic Necessity is the fifth 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.

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.
 

Whisper Listings Spark Debate Over Fairness in Co-op and Condo Sales

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HABITAT Magazine

They’re called whisper listings — co-ops and condos and other homes available for sale only to those in the know, before they’re added to a public multiple listing service, known as an MLS.

One brokerage, Compass, has taken the concept to a new level, Crain’s reports. The brokerage has rolled out a curated, Compass-brokers-only website that potentially allows the brokerage to keep the buyer- and seller-side brokers’ fees in-house. Compass says the program is intended to give homebuyers and -sellers a lift in a tight housing market. Prospective buyers can bid without being muscled aside by as many competitors, while sellers can tweak pricing without coming across to the general public as desperate.

Critics see whisper listings a bit differently.

“Let’s be clear,” Brown Harris Stevens CEO Bess Freedman writes in the website Inman. “Any brokerage that advocates for only marketing listings internally is not putting the client’s interests first, but rather it is an attempt to pad its own pockets. Private listings minimize competition for the client.”

But Rory Golod, president of growth and communications at Compass, says the program helps ensure fairness for sellers by preventing them from having to combat the impression that if the asking price for their home has been lowered, or if the property has been on the market for a long time, then it is of low quality or somehow less desirable.

According to a recent Compass filing with the Securities and Exchange Commission, the so-called private exclusives program is designed to test prices, obtain industry insights and generate early buzz before a property is added to an MLS. The brokerage contends that private listings help sellers avoid having “negative insights” about their homes, namely data on price drops and days on the market, published online and available to prospective buyers.

Of the roughly 2,300 listings in New York City for which Compass alone was the marketing agent, about 500 were cordoned off in mid-March as private exclusives, according to a Crain’s analysis of the brokerage’s data. Of those, 370 involved co-ops, condos or townhouses in Manhattan, the borough Compass focuses on the most.

Among the opponents to whisper listings, unsurprisingly, is StreetEasy, the popular Zillow-owned data service that relies on open listings. “StreetEasy believes in fair, transparent and equal access to real estate information, and is staunchly against anything that prevents it,” says StreetEasy General Manager Caroline Burton. “Hiding listings from the public — especially in a market like New York, which faces the biggest housing shortage in the country — not only exacerbates this issue, but puts buyers, sellers and agents at an extreme disadvantage.”

HOA Homefront: Why is HOA living and governance so HARD

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By KELLY G. RICHARDSON | kelly@roattorneys.com | Contributing Columnist for the LA Daily News

Living in HOAs and governing HOAs can seem frustrating at times, but there are reasons for that frustration, and sometimes recognizing the issues helps.

Property independence

Our society highly prizes the independent ownership of land. The “my home; my castle” philosophy is uniquely strong in the American culture, and it’s hard for us to embrace shared ownership of property.

However, for over 50 years, economic forces have pushed the American public increasingly to common interest communities to make property ownership affordable with amenities in desirable living locations. Many cultures around the world have few problems with the concept of shared control of property, but we haven’t fully embraced it yet.

Failure to embrace the trade-offs

What makes common interest communities work is the tradeoff of shared benefits for shared control. It’s great to be able to use a tennis court or a nice clubhouse, but it’s not mine, it’s OURS. That means the individual doesn’t have control over management of the court or clubhouse. Homeowners who enjoy HOAs the most are those who recognize and appreciate that trade-off.

Failure to read governing documents

The Covenants, or “CC&Rs” operate as an agreement that automatically binds all owners in the HOA. This is very powerful document, with provisions enforced by California courts unless there is a specific legal reason not to do so. However, many HOA homebuyers never bother to read through the CC&Rs before agreeing to close escrow.

Only later, after getting a violation letter from the HOA do they learn that, for example; recreational vehicles cannot be parked in driveways, that pets or rentals are subject to limitations, or that certain aspects of the home cannot be altered without HOA permission.

HOA CC&Rs, bylaws, and rules should be reviewed by homebuyers before their cancellation rights cease, to avoid major surprises that can change the way the homebuyer might have expected to own in that HOA.

Believing myths

One very common HOA problem is the homeowner who “shoots first, and asks questions later” regarding alterations of their property or common area around their property.

There is a reported appeal case in Southern California upholding a judge’s order that a homeowner dismantle the second story they had added to their house (in violation of the CC&Rs) and that they pay the HOA’s attorney fees.

Some people think that once they’ve moved a fence or changed their driveway that it will be harder for the HOA to challenge it, which often proves to be a very expensive mistake.

“Me” instead of “we”

Brilliant and otherwise highly accomplished people can become highly negative factors in their HOA because either as a homeowner or a director they focus only on their own desires and interests and base their comments, actions, and decisions on that focus.

If one only wants to focus on their own desires and has no time for anyone else’s values, opinions, or desires, that person will not do well in the common interest community housing model – as a homeowner or volunteer leader.

Here’s hoping these help toward better understanding and neighborliness in your community!

Kelly G. Richardson CCAL is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Send column questions to Kelly@roattorneys.com .

City Partners With AI to Rework Condo Property Tax Assessments

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New York City HABITAT Magazine

The robots are coming! The robots are coming!

New York City’s arcane, unfair and unloved property tax system is about the get help from a new source: artificial intelligence.

The Department of Finance has partnered with technology firm C3 AI for a six-month pilot program that will explore using AI to calculate the assessed value of the city’s residential condo properties, Crain’s reports. The program will use machine learning along with market and sales data, and it will investigate how practical it is to base property tax bills on sales comparisons for condo buildings with more than 10 units. Under the current system, co-op and condo assessed values are based not on sale prices but on the the value of comparable rental properties. (Assessed values, a fraction of market values, are part of the equation used to calculate property tax bills.)

C3 AI’s “approach is considered a more fair and transparent way to assess properties,” and the program could boost property tax revenues if successful, according to a notice published in the city record.

C3 AI’s appraisal platform would allow the city to identify and resolve data discrepancies, appraise several properties simultaneously and identify sites that require additional judgment, according to a promotional video on the company’s website. Every appraisal comes with “an evidence package and sales comparables that explain how the AI property value was generated.”

Valuations play a huge role in New York’s notoriously byzantine and controversial property tax system. Although officials tend to undervalue buildings, which leads to a lower tax bill, owners still frequently go to court to challenge their valuations.

The city released its tentative property tax assessment roll for fiscal year 2026 in January, which put the overall market value of the city’s buildings at about $1.6 trillion, up 5.7% year over year. It anticipated a 7.3% increase in the market value for condos, co-ops and rental apartment buildings.

If successful, the C3 AI pilot program could lead to a longer-term contract. Meanwhile, the organization Tax Equity Now New York (TENNY) is in the middle of a lengthy legal battle seeking to upend New York’s overall property tax system. The group argues that it breaks federal fair-housing laws by overtaxing neighborhoods where people of color make up the majority of residents and breaks the state real property tax law by overtaxing rental properties compared to owned homes.

The current law puts a cap on annual property tax increases, which has had the effect of lowering tax bills in neighborhoods where property is appreciating rapidly, while punishing neighborhoods that are experiencing slow or no appreciation in values.

The TENNY suit dates back to 2017, and the Court of Appeals revived it last year.

HOA Homefront: Why is HOA living and governance so HARD

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By KELLY G. RICHARDSON | kelly@roattorneys.com | Contributing Columnist for the LA Daily News

Living in HOAs and governing HOAs can seem frustrating at times, but there are reasons for that frustration, and sometimes recognizing the issues helps.

Property independence

Our society highly prizes the independent ownership of land. The “my home; my castle” philosophy is uniquely strong in the American culture, and it’s hard for us to embrace shared ownership of property.

However, for over 50 years, economic forces have pushed the American public increasingly to common interest communities to make property ownership affordable with amenities in desirable living locations. Many cultures around the world have few problems with the concept of shared control of property, but we haven’t fully embraced it yet.

Failure to embrace the trade-offs

What makes common interest communities work is the tradeoff of shared benefits for shared control. It’s great to be able to use a tennis court or a nice clubhouse, but it’s not mine, it’s OURS. That means the individual doesn’t have control over management of the court or clubhouse. Homeowners who enjoy HOAs the most are those who recognize and appreciate that trade-off.

Failure to read governing documents

The Covenants, or “CC&Rs” operate as an agreement that automatically binds all owners in the HOA. This is very powerful document, with provisions enforced by California courts unless there is a specific legal reason not to do so. However, many HOA homebuyers never bother to read through the CC&Rs before agreeing to close escrow.

Only later, after getting a violation letter from the HOA do they learn that, for example; recreational vehicles cannot be parked in driveways, that pets or rentals are subject to limitations, or that certain aspects of the home cannot be altered without HOA permission.

HOA CC&Rs, bylaws, and rules should be reviewed by homebuyers before their cancellation rights cease, to avoid major surprises that can change the way the homebuyer might have expected to own in that HOA.

Believing myths

One very common HOA problem is the homeowner who “shoots first, and asks questions later” regarding alterations of their property or common area around their property.

There is a reported appeal case in Southern California upholding a judge’s order that a homeowner dismantle the second story they had added to their house (in violation of the CC&Rs) and that they pay the HOA’s attorney fees.

Some people think that once they’ve moved a fence or changed their driveway that it will be harder for the HOA to challenge it, which often proves to be a very expensive mistake.

“Me” instead of “we”

Brilliant and otherwise highly accomplished people can become highly negative factors in their HOA because either as a homeowner or a director they focus only on their own desires and interests and base their comments, actions, and decisions on that focus.

If one only wants to focus on their own desires and has no time for anyone else’s values, opinions, or desires, that person will not do well in the common interest community housing model – as a homeowner or volunteer leader.

Here’s hoping these help toward better understanding and neighborliness in your community!

Kelly G. Richardson CCAL is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Send column questions to Kelly@roattorneys.com .

Community Associations on the Rise in 2023

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Ashok Chaluvadi National Association of Homebuilders

In 2023, 64.8% of all new single-family homes started were built within a community or homeowner’s association. This share increased from the 62.6% recorded in 2022, according to data tabulated from the Census Bureau’s Survey of Construction (SOC). This marks the third highest share since the beginning of the series in 2009, after the high point of 67.1% in 2020 and 65.5% in 2021.  Prior to 2021, the share had been on a decade-long upward trend.  In absolute numbers, a total of 601,558 homes were started in community associations in 2023.

The Census Bureau defines community or homeowner’s associations as “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory.”

A recent NAHB study, What Home Buyers Really Want,  asked recent and prospective home buyers to rate the influence that 29 community features would have on their purchase decision.  For more than 65% of buyers, being near retail space and park areas, and having walking/jogging trails are the most influential community features. In contrast, only 39% feel the same way about a homeowner’s association.

When analyzed by the nine census divisions, the highest share of new homes started within a homeowner’s association was in the Mountain Division, where 81.9% of new homes were in such communities. In the Middle Atlantic Division, on the other hand, the share was only 28.6%. The share of new homes started within a community across U.S. divisions are shown in the map below.

CITY OF WASHOUGAL LAUNCHES HOA AND NEIGHBORHOOD REGISTRY

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Lacamas Magazine

Washougal, WA — The City of Washougal is excited to announce the launch of its Homeowners Association (HOA) and Neighborhood Registry, aimed at fostering stronger community connections and enhancing local communication. Washougal is comprised of roughly 200 neighborhoods with their own unique character and appeal.

The registry allows HOAs and neighborhood associations to officially register with the city, providing a centralized resource for residents to access information about community organizations. Residents are encouraged to register their associations online to stay informed about city programs, initiatives, and opportunities for collaboration. The city is committed to supporting neighborhoods and strengthening community ties through this new initiative.

“Woven together to create a distinct tapestry, each neighborhood brings its own beauty, its own charm, and identity to the overarching community,” said Sherry Montgomery, Community Aesthetics Program Coordinator. “This registry is a fantastic opportunity for neighborhoods to connect and collaborate. We believe that by working together, we can enhance the beauty and spirit of our community.”

For more information and to fill out the registration form, please visit https://cityofwashougal.us/789/HOA-Neighborhood-Registry.

Indiana lawmakers begin exploring changes to homeowners association powers

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WBAA | By Brandon Smith

Indiana lawmakers took their first steps this week in exploring whether changes are needed in the ways homeowners associations operate.

A study committee took testimony that was prompted by concerns from lawmakers like Rep. Julie Olthoff (R-Crown Point).

Homeowners associations must file their rules — known as covenants, conditions and restrictions — with their local county. But Olthoff said her county recorder told her only about 40 percent of HOAs are up to date on that requirement.

“They’re not even doing what they’re required to do and there’s nobody watching,” Olthoff said.

The Indiana Builders Association told lawmakers no changes are needed to the system.

But Kelly Elmore from the Community Associations Institute — which advocates for HOAs — said HOAs need more options to enforce their rules.

“That allows community associations, when there are violations or other issues in communities, to assess a penalty,” Elmore said.

Elmore suggested legislation could also include limits on certain fees and penalties.

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Rebecca Richter is the head of a condominium association in Hamilton County. She said organizations like hers need more power, not less.

“People buy into these associations because they like the look, the general look,” Richter said. “And if we can’t enforce the general look with effective tools at our disposal that don’t clog up the courts, it just makes our jobs that much more difficult.”

The study committee likely won’t make any recommendations about potential HOA legislation.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.