HOAS no longer accepted for CAI membership

For several years, we have been informing all interested parties that the CAI business trade organization, a tax exempt 501(c)6 nonprofit organization subject to the requirement of this federal tax exemption, has no business representing homeowners or homeowner associations, since they are consumer groups.

Finally, Community Associations Institute, CAI, has removed the category “homeowner asociation” from its memebrship. Instead, it offers discount membership to individual board members of an HOA, if the HOA signs up a group of board members. However, please be aware that CAI is inducing HOAs, via their board of directors, to sign up their board members in order that the board members qualify for discount memebrship fees. This action, if taken by HOA boards, still presents them with very serious conflict of interest and breach of fiduciary dutes to the membership, the assessment paying homeowners, if assessments are used to fund memberships and not used to maintain the HOA property.

As posted here, attorneys so advising boards as to the legal aspects of funding CAI dues should take a close look at our eEditorial of June 10, 2005, “HOA attorney fiduciary duty to homeowners.”

Excerpt for CAI’s web page:

CAI’s New Membership Structure
We’re Changing

Instead of “associations” being members of CAI, volunteer community leaders and homeowners will hold individual memberships as of July 1. Member benefits, including discounts, will be available only to those who hold individual memberships.

Community association volunteers: Annual dues will be $85, with discounts available when board members are signed up as a group by the association [emphasis added] ($55 for the second member, $45 for each additional member). Each individual member will receive benefits directly from CAI. Individual homeowners who are not part of the group membership will pay $85 in dues.

See CAI Membership web page: Membership

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Published in: on June 22, 2005 at 2:25 pm  Comments (2)  

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2 CommentsLeave a comment

  1. […] [4] HOAS no longer accepted for CAI membership. […]

  2. You must be joking….volunteer board member’s are in “office” at the most two years. Why would any board member want to engage in such practices? I realize you state you offer information on how to run an association as a volunteer but that information is readily available for free. BTW: HOA’s are not businesses…we don’t produce a product and we don’t sell a product…so we are not businesses. We are simply a group of homeowner’s who have a common interest in life stile. All that we ask is that all entities leave us alone….we don’t need your or anyone else’s advise on how to handle our association.


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