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Our Objective
WHAT IS OUR OBJECTIVE?
IIn California, there are estimated 35,000-40,000 community
associations comprising condominiums, townhomes and single
family associations (more being built every day). They represent
an estimated 3,000,000 units and are occupied by an estimated
6,000,000 people. Annually, California community associations
spend an estimated six billion dollars and own an estimated
450 billion dollars in property values.
In years prior to the California Association of Homeowners
Association the value of condominiums and townhomes decreased
in value at a faster rate and recovered at a slower rate than
other single family homes and often the outstanding loan balance
on condominiums and townhomes would be greater than the appraised
value. This has been of great concern to us. Today this trend
has changed. Community living has become the preferred mode
of housing for many California homeowners.
For years Board members and homeowners have relied heavily
on the Property Management industry for information and direction.
This, at the time, was perhaps the only source of information.
Today the California Association of Homeowners Associations,
dedicated to strength in Unity and the Value and Enjoyment
of Property, has placed a complete resource of information
on the internet for Condominium and Community Association
owners, property managers and others interested in this industry.
The California Association of Homeowners Associations, Inc.
has been organized to benefit all condominium owners in California.
Our purpose is to strengthen Boards of Directors and collectively
unite the members of their respective associations. It has
been formed to provide a complete and comprehensive collection
of documents, laws and information for California’s
condominium and townhome owners. It has also been organized
to provide a means whereby homeowners’ associations
can communicate with each other and thereby assemble the best
current and relevant information from all associations throughout
the state of California to the mutual benefit of each other.
Ultimately, the purpose is to protect your investment, to
increase property values and assure the reasonable enjoyment
of your property.
WE ARE CONCERNED
We are concerned with the negative effect renters are having
on the value and enjoyment of our property, and that the ratio
of renters to owners is increasing annually. Have you considered
that you pay a greater and disproportionate share of property
taxes than other single family homeowners? Did you know that
the State of California Department of Real Estate does not
require property managers to obtain a license of any kind
to management community property? Are you concerned with the
perception and apprehension many people have about community
living? We have been concerned with these and many other issues
… and we have observed many improvements and successes.
The California Association of Homeowners Associations is
committed to correct these matters. We have prompted legislation
to address these issues and have assembled an impressive organization
to accomplish our objectives. But we cannot succeed without
your help. United we will change associations for the benefit
of all condominium and townhome owners.
SAVING MONEY - SOLVING PROBLEMS
The California Association of Homeowners Associations Incorporated,
can help homeowner associations in solving financial and other
problems. By joining together and utilizing the strength of
our great numbers, community associations can significantly
reduce costs of major items. Items such as insurance, painting,
roofing, slurry sealing and tree trimming, and other large
ticket items. Moreover, vendors such as contractors, plumbers
and electricians will offer discounts when providing services
on a group basis. Work provided is often better performed
when the vendor is aware the quality of service will be known
to other homeowners. There are many functions performed by
vendors that are common to most Homeowners Associations where
group rates could result in substantial savings for Homeowner
Associations.
INSURANCE
The cost of HOA insurance has recently dramatically increased.
We can reduce this cost, when associations adopt appropriate
policies on an industry wide basis to manage their insurance
coverage and work together to mitigate claims and losses.
At the same time, we also convey a message to primary insurance
companies and reinsurance companies that there is enormous
strength, order and direction in the community association
industry that will affect future insurance rates and regulations
at state and federal levels.
IMPOSED COSTS
There are also matters that can only be solved when an industry
has a sizable muscle to flex. Take one City in the south land
for example. About three years ago this City changed their
water rates for condominiums from residential to industrial.
Consider what effect that has had on water and sewer bills
in this region. If it happened once, how long before other
cities will follow? Some cities are holding water deposits
of condominiums on file until the corporation changes ownership,
which can never happen. These, and other similar matters,
are being challenged by the California Association of Homeowners
Associations.
PROPERTY TAXES
Consider your property taxes? Within a city consider the geographic
size of a condominium association of 100 units compared with
the geographic size of one hundred single family homes. The
100 homes are typically on asphalt streets with curbs, parkways
and landscaping, with sewer lines, fire hydrants, telephone
and power lines, street lights, street sweeping, police patrol
and street maintenance. The 100 unit condo complex has none
of these public-funded amenities. If one asks the police to
tow an abandoned car, they will tell you they cannot for it
is on private property. Both the homes and the condos pay
the same property taxes. Appropriate legislation resolving
this matter alone could solve the financial problems of most
condominium and townhome associations.
ACCOUNTING AND FINANCIAL REPORTING
Financial planning and reporting are essential to the survival
of any organization. CPAs are available to offer boards and
managers consultation on financial matters, accounting functions,
budget preparation and reserve analysis and tax preparation.
The California Association is providing guidelines to Boards
of Directors and Property Managers to standardize the accounting
and financial reporting of community associations.
EDUCATION & TRAINING
The California Association provides education and training
for Board Members, Homeowners and Management Companies. Seminars
are being held periodically throughout the year to accommodate
new board members on subjects of finance, conducting meetings,
parliamentary procedure, preparing essential records, etc.
UPDATING DOCUMENTS
Why should each homeowner associations reinvent the wheel?
It is common knowledge that the CC&Rs, Bylaws and other
association documents are out of date. So why should each
association hire an attorney to update these documents at
high costs? Could not a committee of attorneys bring the best
of all associations together, prepare one generic document
on computers and then attorneys could tailor a new document
for each association at a fraction of the cost?
LICINSING PROPERTY MANAGERS
Now on the drawing board!
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