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This site has been created to allow those living in and serving community associations to participate in developing a legislative solution to the long-term conundrum: How to increase competence of volunteer Community Association directors to prevent mistakes and disasters without discouraging involvement.

Would you entrust your life savings to an "investment advisor" you knew had no education or experience in investing? ...and no license?
We expect professionals providing critical services to be licensed... required by the state to have demonstrated knowledge and competence in their respective fields.

So why is a person responsible for preserving the value of your most valuable asset not required to be trained or licensed?


Homeowners association directors can profoundly affect the value of your home and living environment. Damage to communities from lapses in oversight by well-meaning but untrained volunteers has spawned copius law to regulate homeowners associations. So why haven't HOA directors been required to be trained or licensed?

Of course, we know why...

Serving as a volunteer on a community association board can be a thankless job, requiring many hours each month, taking valued time from families and time to recover from stress of work and other household and civic duties. Recruiting volunteers can be difficult enough without imposing added burden, which may only discourage potential volunteers.

Requiring volunteers to undergo training to qualify for a license is not realistic

The conundrum of requiring competence vs. ability to recruit willing directors, albeit underinformed, has long plagued community associations. Whereas amazing organizations — such as CAI (Community Associations Institute) and ECHO (Educational Community for HOA Homeowners) — have created a wealth of educational resources for volunteer directors, education remains elective and undersubscribed. And detrimental consequences will continue.

building with ok switch

So if requiring competence means diminished volunteerism, what can we do to make our HOAs 'OK?'

Let's create a plan

For many years, I've contemplated the volunteerism vs. training conundrum. I've finally developed a draft outline of a program I believe can work. I offer this for public review to be scrutinized, criticized and prodded into shape — by you. Because integrating ideas from a spectrum of backgrounds will produce a superior result.

Perhaps we're breaking new ground doing this; whoever heard of crowd-sourced legislation?

Here's a draft to start with — you can help change and refine it...

You can help to shape this program before we take it to our friends in the legislature to help bring it into realization.

Below I'll describe the current state of the program as drafted. I have placed a description of its components into a GitHub respository, making it easy for anyone to examine and suggest edits, though you don't have to use GitHub to participate. (Git is a means for version control created by Linus Torvalds in 2005 for software development. It was so effective for software, it has since been used by writers for complex projects involving multiple contributors, where the need to track changes is essential.)

What is GitHub?

You don't have to use GitHub but it's cool if you can. GitHub is a website where authors of documents and computer programs can share repositories of project computer files others can access, examine and suggest changes. It allows many contributors to participate in creating and maintaining complex documents and computer programs, while it keeps track of revision details.

GitHub uses GIT, computer software that takes care of the complexities of version control and tracking changes. GIT was created by Linus Torvalds in 2005 for software development but was so effective for software, it has since been used by writers of other document types involving multiple contributors, where the need to track changes is essential.

Of course, you can contribute ideas, comments and suggested changes without using GitHub simply by using e-mail or the forum on this site. But if you're comfortable using GitHub, that will expedite development, particularly if you are an attorney willing to help draft legislation. (I'm not an attorney and while I've made a lay effort to adapt existing legislation for this, I'm sure it must seem pretty pathetic to an attorney experienced with crafting legislation. Please help(!) by helping to draft legislation to bring this program to reality.

While this program was created with the California legislature in mind, community association citizens and professionals and legislators across the country can participate here in crafting a program that can be adapted for other states. (Why not?! If your state requires an adjustment to accommodate a particularly law, just label your changes particular to that state.)

The program per the current draft

Rather than compel, let's incent education

The program would not be compulsory. Community associations may continue to operate as they have without fear of a requirement that might discourage prospective volunteers. However, for those associations that encourage their directors to become certified, benefits await...

What would you say to a program that

  • Provides template legislation any state could adopt that...
  • establishes a rating for every community assciation in the state, based upon level of directors' training, structural inspection frequency, reserves studies and sufficiency of funding, engagement of an attorney specializing in community association law, whether managed by a manager who is trained and certified, and record of directors following best practices?
  • requires boards to inform members of that rating annually and made it available publicly online for access by members, real estate agents and prospective buyers?
  • rewards those communities earning high ratings with lower insurance premiums (i.e. lower dues!) and prestige real estate agents can use to promote those communities and elevate property values — and other benefits?
  • increases caliber of board oversight by identifying on ballots and election materials those candidates who had invested time to attain training and earn certification as a Certified Community Association Director?

And can you imagine an HOA board — knowing they must send their report card to their members annually — not doing everything they can to elevate their rating?

This plan provides components heretofore absent in HOA oversight — essential for any business to ensure quality performance: (1) metrics and (2) feedback, enabling (3) adjustments to effect improvement.

Isn't it time we got serious about improving the caliber of governance for many millions of citizens living in community associations?

Components

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State legislature would establish a certification authority

Although language in the examples is for "California," there is no reason a program like this couldn't be adopted by any state.

The legislature would pass a bill (see legislation draft) establishing a board to administer the plan described herein. The authority may be called, for example, Board of Certification for Community Association Directors (BCCAD).

The bill would include standards for an educational program known as, for example, the ‘COMPETENCE’ training program, an acronym for Community Oversight and Management Principles Education To Engender Community Excellence. (This acronym also complements the preferred means of attaining certification — through the Competency Based Education method. See the US Department of Education explanation of this method.)

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The legislation would establish the credential of Certified Community Association Director

The legislation would authorize the authority to set standards for and administer tests and grant certifications to members of common interest developments who meet standards of knowledge of best practices and basic legal requirements for governance of state community associations.

The board would work with educational organizations such as CAI (Community Associations Institute) and ECHO (Educational Community for HOA Homeowners) to facilitate training and continuing education to prepare for and maintain the certification credential.

Election materials would identify any certified candidate with an asterisk, with a footnoted explanation, raising awareness of the value of the credential.

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Each Community Association would earn a rating

The BCCAD would maintain a community association rating system wherein ratings are derived principally by the proportion of communities' directors certified under this program, whether a reserves study has been conducted within the past four years, how well reserves have been funded, willingness to maintain continuing education and certifications, and their willingness to maintain relationships with legal and community association management professionals.

Director certifications as well as community ratings would be accessible online and a community rating certificate may be downloadable at any time.

Community associations would be required to disclose their ratings to members annually.




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Participation and rating should bring many benefits

Insurance companies have the power to make this work. They are rewarded when they insure communities with high ratings whose directors have undergone COMPETENCE training on best practices, legal requirements and risk management. Insurance may be one of the largest budget items affecting monthly dues. Actuarially-adjusted premiums may be a potent incentive.

Ratings also may be used by real estate firms when marketing and promoting properties within communities and by vendors who may choose to offer discounts or special terms for community associations that maintain a certain rating.

Community boards and members may take special pride in maintaining high ratings as other benefits also await.


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