CAI finally admits to being a business trade tax-exempt 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 education. […] We work to identify and meet the evolving needs of the professionals and volunteers who serve associations, by being a trusted forum for the collaborative exchange of knowledge and information, and by helping our members learn, achieve and excel.
In my 17 years as a HOA reform activist this is a landmark first! This is a personal achievement. There was very little support from other reform advocates and homeowners regarding misrepresentation by CAI. As a result of my repeated criticisms and exposes, CAI had to apparently fess up.
Over its 44 years in existence CAI has mislead its viewers, members, the public and legislators as to its legal tax-exempt status. It news releases, websites, Common Ground magazine, communications with state and federal elected officials, and court filings that refer to representing homeowners and HOAs. CAI is not allowed to have HOAs as members! Example, CAI’s current web page reads,
CAI provides information, education and resources to the homeowner volunteers who govern communities and the professionals who support them. CAI members include association board members and other homeowner leaders, community managers, association management firms and other professionals who provide products and services to associations.
CAI serves community associations and homeowners . . ..
CAI cutely sidesteps this criticism using legal “word games,” parsing sentences and the meaning of words. In my view, CAI will use the First Amendment right protecting the freedom to associate and so HOA directors are free to join the vendor trade organization. However, by using their CAI vendors, lawyers and managers, to educate them as to what is good and right for their community and HOAs in general, directors are placing themselves in a conflict of interest violations.
CAI even to urges HOAs to support legislation harmful to the membership. Please understand that CAI is legally protected by leaving the decision to become a CAI member up to the HOA board and individual director.
It is the director who holds the bag as to conflict of interest and loyalty violations of state laws and the governing documents. In whose best interest is he functioning? CAI’s view of authoritarian, un-American de facto governments, or the HOA members? It is unconscionable and laughable that HOA boards would become CAI members!
The reason for doing so, in my experience, is a direct fault of the HOA legal scheme: Boards of directors are incompetent, grossly negligent, and do not wish to run the HOA or educate themselves, aside from being indoctrinated by CAI seminars. Some are competent and are not CAI members. Others by far are rogue boards who freely get away with violating the laws and governing documents, because there are no civil monetary penalties to deter such illegal activities.
In short, CAI as a business trade organization is legally bound to promote the interests of its members, the lawyers and managers. What is the business interest of a nonprofit HOA or its individual directors? The purpose of CAI as a business trade organization is not to support the consumers of its products and services, the HOA consumers.
 Misrepresentation: CAI comes with unclean hands. Contains multiple quotes by CAI HQ and state chapters evidencing this misrepresentation.
 See Complaint filed with NJ Supreme Court for CAI lack of “candor to the tribunal” as an example of a CAI court filing.