CAI favors the large, resort type HOAs over residential HOAs


In this CAI report,[1] Large Scale Associations (LSA) are defined by CAI as having “more than 1,000 lots or units and budgets of several million dollars, by five primary-use and lifestyle-theme categories—Age Restricted, Mixed-Use, Private Club, Residential, and Resort/Residential.”   CAI is segmenting the HOA into types using criteria that I have been using for years:  resort vs residential.[2] “Private club” would also fall into a resort type community.

In my view, residential is precisely that, a subdivision of homes with minor or no amenities, where the owners do not realize what they have surrendered when entering the HOA. Residential and resort are two different types of animals. They do not mix!

The report goes on to extol the virtues of these LSA HOAs, including a higher percentage of member involvement with local government affairs. And consistent with the “CAI Manifesto”,[3] the report continues the CAI indoctrination, stating that CAI

“is proud to offer the Large-Scale Association Survey as a new tool to benefit managers, real estate developers, land planners, municipal governments, and private citizens seeking information on the amenities and services offered by large-scale associations.”

But what about the people, the average American, seeking to own a home of his own with perhaps an unfounded belief that the HOA scheme will protect his property values? They seem to have been cast aside as collateral damage from the forward march of HOA-Land in America.

The report fails to distinguish a LSA residential HOA from a LSA resort HOA. It fails to provide data as to the percentages of each.  Obviously, one must conclude that the resort HOA has minimal amenities, if any, and may simply have private streets and open space common areas.

However, CAI does not explain a Nevada CAI LAC report[4] in 2011(?) that shows some 2,978 HOAs (CICs), of which only 54 are over 1,000 units. That’s addressing a pitiful 1.8% of the HOAs in Nevada, and a corresponding tiny number of homes getting favorable treatment as compared to the rank and file homeowner.

My view is that all those blogs and commentaries and views in support of HOAs relate to the resort type LSA by far and large.  And the policymakers are also blind to the plight of the average American living in an HOA. The HOA legal scheme is not contributing to the unity of this country for which our presidential candidates are crying out, but for class segmentation and diversity.


PS.  The one good thing about this report is that CAI finally mentions, indirectly, that it is a business trade group, a 501(c)6 tax exempt and not an educational organization.  “Community Associations Institute (CAI) is a national nonprofit 501(c)(6) organization founded in 1973 to foster competent, responsive community associations through research, training and educationCommunity Associations Institute (CAI) is a national nonprofit 501(c)(6) organization founded in 1973 to foster competent, responsive community associations through research, training and education.”  Does the average reader know that a 501(c)6 is NOT an educational organization. From the statement above, he wouldn’t come to that conclusion, would he?


[1] “308New report examines trends in large-scale community associations,” News and Information From CAI, LARGE-SCALE COMMUNITY ASSOCIATIONS REMAIN POPULAR WITH HOMEOWNERS AND LOCAL GOVERNMENTS

[2] Analysis of 2005 CAI HOA survey. “With [resort and retirement categories], home buyers have a higher acceptance of rules and regulations, and the obligations to conform in these “institutionalized” settings. With respect to Residential, buyers expectations can run from “just buying a home” to “a property value protection association.”

[3] CAI manifesto: CAI’s plan for HOA-Land in America.

[4] “Why Legislative Advocacy Matters,” CAI Nevada Legislative Action Committee.

Published in: on July 23, 2016 at 11:07 am  Comments (1)  

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  1. Believe me..treatment in a little 35 home HOA, that has no common amenities…can be horrible. And I don’t half the time understand why expletive keeping up their homes appearances should be subject to such treatment when there is nothing to gain, but so much to loose in legal costs. I feel that they truly think having their land and home tied to an HOA is a status symbol. There are so many people (That know better) searching for homes that want no part of an HOA. Real estate agents need to stop telling people that don’t want an HOA..” It’s an old small community…not really an HOA. Because an HOA is an HOA, and there are lots of crazy authoritative minded people that love being in charge and making their 35 neighbors lives a living hell.

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