FAQ

Frequently Asked Questions

We have taken the time to provide to you a host of some of our more common or frequently asked questions. We hope that this helps you in your evaluation and decision making process.

Are Community Association residents happy?

Do you know you are among the more than 60 million Americans who live in homeowners associations and condominium communities? We think most residents are happy living in our community—and we certainly hope you are among them—but how do these 60 million residents feel about their own associations? Are they happy with their elected boards? How do they feel about the rules?

The Foundation for Community Association Research, an affiliate of Community Associations Institute (CAI), sponsored a recent national public opinion survey to answer these and other questions. Here are some of the key findings:

71 percent of residents say they are satisfied with their community association experience. Only 12 percent express dissatisfaction and 17 percent are neutral on the question.
89 percent believe their association board members strive to serve the best interests of the community, while 11 percent say the opposite or they aren’t sure.
76 percent say their professional managers provide value to their communities, while 24 percent say the opposite or they aren’t sure.
70 percent believe their community association rules “protect and enhance” property values. Only 2 percent say rules harm property values, while about 29 percent see no difference or didn’t know.

We’d like to think that we would do even better than the national averages. If you feel differently, please let us know what you think we can do to make our community a better place to live. If you’re especially pleased about our community, share that too! It’s always good to know we’re on the right track.

More national survey results, which include comparative data from similar surveys in 2005 and 2007, are available under “Research Projects” at www.cairf.org.

What do Community Association residents have to say?

Americans who live in community associations are overwhelmingly pleased with their communities, expressing strong satisfaction with the board members who govern their associations and the community managers who provide professional support.

More than seven in 10 community association residents expressed satisfaction with their community experience, according to a survey conducted by Zogby International, a leading public opinion research firm. Almost 40 percent of community association residents say they are “very pleased,” with only 10 percent expressing some level of dissatisfaction. Almost 20 percent express neither point of view.

An estimated 54 million Americans live in some 274,000 homeowner associations, condominium communities, cooperatives and other planned developments.

Here’s what community association residents say:

88 percent believe their governing boards strive to serve the best interests of the community.
90 percent say they are on friendly terms with their association board members, with just 4 percent indicating a negative relationship.
86 percent say they get along well with their immediate neighbors, with just 5 percent reporting a negative relationship. Of those who reported issues with neighbors, the most common problems were pets, general lifestyle, noise, and parking.
78 percent believe community association rules “protect and enhance” property values, while only one in 100 say rules harm property values. About 20 percent see no difference.
88 percent of residents who have interacted with professional community managers say the experience has been positive.
The research was sponsored by the Foundation for Community Association Research, a non-profit organization created in 1975 by Community Associations Institute (CAI).

Based on telephone interviews conducted in August 2005, the survey has a margin of error of +/- 3.5 percentage points. A summary of the results is posted at www.caionline.org/about/survey.cfm.

What Is the Lender's Formula?

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What Do I Look for in Homes?

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Do I Need a Home Warranty?

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What is a Community Association?

Some residents think homeowners and condominium associations (generally called community associations) exist just to tell them what to do—or not do. Actually, the association is more like a housing management or service-delivery organization that provides three types of services to all residents—owners and renters alike

Community services: these can include securing trash collection, publishing newsletters, orienting new owners, holding community-wide information meetings, and scheduling recreational and social functions.

Governance services: these can include ensuring that residents are complying with the association’s governing documents, that the association is adhering to local, state, and federal statutes (like fair housing laws), enforcing community rules and policies, administering design review policies, and recruiting new volunteer leaders.

Business services: these can include operating the common property efficiently, bidding maintenance work competitively, investing reserve funds wisely, developing long-range plans, and equitably and efficiently collecting assessments.

Providing these services requires good management (whether carried out by a professional manager or a self-managing board of home owners), strong planning and organization, and carefully monitoring the association’s affairs. It isn’t easy, but by fairly and effectively delivering these services, community associations protect and enhance the value of individual homes and lenders’ interests in those homes.

Why do we need reserves?

Equipment and major components (like the roofs) must be replaced from time to time, regardless of whether we plan for the expense. We prefer to plan and set the funds aside now. Reserve funds aren’t an extra expense—they just spread out expenses more evenly. There are other important reasons we put association monies into reserves every month:

“Whether or not” to me is like “over” to you (and me).

1. Reserve funds meet legal, fiduciary, and professional requirements. A replacement fund may be required by:

Any secondary mortgage market in which the association participates (e.g., Fannie Mae, Freddie Mac, FHA, VA).
State statutes, regulations, or court decisions.
The community’s governing documents.

2. Reserve funds provide for major repairs and replacements that we know will be necessary at some point in time. Although a roof may be replaced when it is 25 years old, every owner who lives under or around it should share its replacement costs.

3. Reserve funds minimize the need for special assessments or borrowing. For most association members, this is the most important reason.

4. Reserve funds enhance resale values. Lenders and real estate agents are aware of the ramifications for new buyers if the reserves are inadequate. Many states require associations to disclose the amounts in their reserve funds to prospective purchasers.

5. The American Institute of Certified Public Accountants (AICPA) requires the community association to disclose its reserve funds in its financial statements.

Am I Ready to Rent?

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What Should I Offer?

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Can I Ask You for Advice?

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Let's Find You Together the Place You Deserve

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