Most people who purchase a home in a homeowner association (HOA) have no idea what a reserve study is, or why it is important. In spite of the critical role reserve planning plays in the long-term sustainability of the organization, many HOAs have never conducted a reserve study and do not maintain a reserve account.…
Fifty years ago, the term “homeowner association” or HOA for short, was relatively unknown in the United States. Various sources have estimated that the total number of HOAs in the U.S. as of 1963 was perhaps no more than five hundred. Other than a handful of large, established planned developments such as Rancho Santa Fe…
In the first installment we examined the evolution of the common interest development movement beginning with the publication of Ebenezer Howard’s 1902 book Garden Cities of To-morrow, which was a revised edition of Howard’s 1898 publication To-morrow: A Peaceful Path to Reform. Fast forward sixty years to 1962, there were perhaps 500 HOAs were scattered…
In 2009, CIDA’s founders introduced the subject of the Tipping Point in response to an invitation from the Community Associations Institute (CAI) to submit a proposal for an educational presentation at the CAI’s national convention. The tipping point thesis was that by 2020 the majority of the homeowner associations (HOA) in the United States years…
90% of all homeowner association (HOA) are organized as a non-profit corporation. In certain respects, these non-profit corporations are not unlike their for-profit, publicly-traded counterparts. Many homebuyers overlook this important fact only to find that the privatized community in which they now find themselves living is beset with financial problems. Problems within the organizational hierarchy…
Salem, OR – House Bill 2466, effective date 1/1/2020: The legislation applies to some planned communities and all condominium associations created “before, on or after” that date. In other words all condominiums and some planned communities created in the state. As a result of HB 2466 all condominium associations and planned communities are required to…
Salem, OR: In 2017 the Oregon Legislature approved House Bill 3057 resulting in changes to the language in chapters 94 and 100 of the Oregon Revised Statutes (ORS). ORS 94 is the statute that governs planned communities in Oregon while ORS 100 governs condominiums. Both statutes were “cleaned up” to paraphrase one esteemed former Representative…
Olympia, WA: In 2018 the Washington legislature passed Senate Bill 6175. The legislation, which took effect on July 1, 2018, is arguably a step in the right direction in the ongoing campaign to standardize the laws than govern HOAs. Patterned after a piece of model legislation known as the Uniform Common Interest Ownership Act, the…