Community Associations and increasing the value of homes in the neighborhood

A new study done in Northern Virginia by a George Mason University professor and student shows that community associations may increase the value of property by 5-6% over comparable homes in adjacent communities without associations. Publishing their findings in Regulation magazine, the authors note that the home value added by community associations is “especially remarkable when one considers that (HOA) residents pay twice for many local services—once in taxes and then again in HOA fees.” In addition, the authors put forth legitimate questions, including: Do community associations add to home values by offering higher-quality services than local government or by providing benefits that governments can't (for example, greater zoning restrictions)? To find out more: http://www.cato.org/pubs/regulation/regv28n3/v28n3-2.pdf

Home Owners' Associations increase property value

A new study done in Northern Virginia by a George Mason University professor and student shows that community associations may increase the value of property by 5-6% over comparable homes in adjacent communities without associations. Publishing their findings in Regulation magazine, the authors note that the home value added by community associations is “especially remarkable when one considers that (HOA) residents pay twice for many local services—once in taxes and then again in HOA fees.” In addition, the authors put forth legitimate questions, including: Do community associations add to home values by offering higher-quality services than local government or by providing benefits that governments can't (for example, greater zoning restrictions)? To find out more: http://www.cato.org/pubs/regulation/regv28n3/v28n3-2.pdf

Community Associations make for better homeowner satisfaction

U.S. citizens residing in community associations are largely pleased with their communities, stating that they are firmly satisfied with the board members running their associations, as well as their supporting community managers.

Over 7 out of 10 people who live in community associations state that they are content with their experience, as shown in a survey done by Zogby International, a major public polling company. Nearly 40% of those living in community associations state they are "very pleased", and just 10% convey any degree of dissatisfaction. Another 20% took neither position.

Roughly 54 million Americans reside in about 274 thousand homeowner associations, condo communities, co-ops and other planned communities.

A breakdown of what community association residents report:
 88% think their governing boards make a strong effort to fulfill community members' interests.
 90% state that they are on pleasant terms with board members, and only 4% suggest relations issues.
 86% state that they are on very good terms with immediate neighbors, only 5% indicating that they have problems. Among the negative responses, the most frequently-stated issues had to do with pets, overall lifestyle, noise and parking.
 78% think that the rules set by their associations "protect and enhance" the value of their property, and only 1% think that these rules hurt value instead.
 88% of respondents who have had to deal directly with professional community managers indicate that they had positive experiences.

The research was paid for by the Foundation for Community Association Research, a not-for-profit group set up by Community Associations Institute (CAI) in 1975.

This survey, which was derived from phone interviews made during August of 2005, has an error margin of +/- 3.5%. A survey summary can be found at www.caionline.org/about/survey.cfm.

Why should an HOA save money?

Building machinery and large elements, such as roofs, have to be redone periodically, no matter if we've made financial arrangements. We are better served to plan and allocate funds now. Reserve funds are not an added expense - they are just a way to even out the cost. Here are other urgent reasons that association funds are placed in reserve each month:

1. Legal, professional and fiduciary needs such as:
- Secondary mortgage markets that the association is engaged with (such as VA, FHA, Fannie Mae or Freddie Mac);
- Regulations, statutes and court rulings set by the State;
- Community Association governing documents
2. Major repairs/replacements that will eventually be needed. Owners living under or in the immediate area of a roof, even one as old as 25 years, should contribute towards its replacement.
3. Minimized need for borrowing or special assessments. This is the biggest justification for a reserve fund among most association members.
4. Enhancement of resale value. Lenders and real estate agents know the consequences of insufficient reserves for new buyers. Several states mandate that associations reveal the contents of their reserve funds to anyone planning to make a purchase.
5. The American Institute of Certified Public Accountants (AICPA) also demands that community associations show the amount of their reserve funds as part of their financial statements.

Strategic planning for HOA board members

Strategic planning is the method used to identify where we're headed and how we're going to arrive. Here are the steps we're taking:
- Examining where we are now. We'll figure out our strengths and weaknesses, and what opportunities and threats we face. Getting an idea of where we presently stand will aid us in arriving at our future goals.
- Defining our purpose. We will make that our "mission statement". For instance, "Our association's aim is to secure the best possible quality of life for our residents."
- Setting goals that clarify what we require to complete our mission. These goals will be clear-cut and measurable, and will show the degree of progress we make.
- Determining how to reach our goals. It may be necessary to set aside resources, build committees, or take on other duties to reach our goals.
- Building an action plan. Every step will need its own action plan. For instance, if a committee is required, who will participate, what tasks will they be given, and at what point will a result be necessary?
- Overseeing and making changes to our plan. The strategic plan will be looked over periodically. If we find that ideas and goals previously set were impractical or faulty, we will make the necessary changes.

Duties of an HOA President

- Cooperating with the board, manager, and residents to set the general goals of the association. 
- Ensuring that the association functions as stated in the association guiding documents. 
- Presiding over board and other meetings, sets meeting agendas, and makes sure that the correct voting procedures are used.
- Finding and readying potential association leaders. 
- Teaming with professional managers and other association professionals to assure the successful running of the association.
- Acting as the formal spokesperson for the community. 

Landscaping and HOA

Meadows, woods, ponds and streams bring value to a community. It's our good fortune when we have these, as they increase the value of property, add beauty and visual appeal, benefit our environment, block wind and noise, and provide energy savings.

 Lawn care providers are limited in their ability to maintain these natural areas, so we must be the ones to maintain our common ground, both natural and landscaped.

 For this reason, the association focuses on wildlife habitat and diversity, and water resources and quality. We hold that maintaining and managing the local ecosystems properly will benefit them and result in monetary savings for the association.

 Always keep in mind, the stewardship of our environment begins with our community.