Texas Ranks Third in Number of HOAs

The number of community associations in the United States grew from 10,000 in 1970 and 222,500 in 2000 to 333,600 in 2014, according to a new report published by Community Association Institute (CAI). While final 2015 data is not yet available, CAI estimates the year will end with between 336,000 and 338,000 associations.

An estimated 66.7 million Americans—20.7 percent of the U.S. population in 2014—lived in common-interest communities, including homeowners associations, condominium communities and cooperatives, according to CAI’s National and State Statistical Review for 2014. Homeowners associations account for 51 to 55 percent of the 333,600 associations, with condominiums representing 42 to 45 percent and cooperatives 3 to 4 percent.
To read more about CAI's facts about associations, click here. 

CMA manages more than 200 of the premier community associations in Texas.  

TOP TEN STATES, 2014

	Associations	Residents
Florida	47,100	7.9 million
California	43,300	7.2 million
Texas	19,400	3.2 million
Illinois	18, 250	3.0 million
North Carolina	13,600	2.3 million
New York	13,400	2.2 million
Massachusetts	12,000	2.0 million
Georgia	10,200	1.7 million
Washington state	10,200	1.7 million
Arizona	9,250	1.5 million

Two CMA Managers Make the Cut for Manager of the Year

Two CMA association managers have earned the distinction of placing in the Top Ten finalists for the Community Association Manager of the Year. The annual award is sponsored by Association Reserve and other service providers to community associations. Winners are recognized at the national Industry conference of the Community Association Institute.

Alice McKee

Alice McKee, previously a CMA association manager in its Allen Region, placed in the top echelon for Portfolio Managers. In other career accomplishments, she recently earned the PCAM professional designation, the highest certification in the community association industry. She was recently promoted to assume the role of on-site manager of Heritage Lakes Community Association in Frisco.  Ali joined CMA in 2007.

Michael Lesku came to CMA in 2007 to serve as a Portfolio Manager in the Allen region before being promoted to On-site Manager of Stonebridge Ranch Community Association.  The master planned community of more than 9,000 homes in McKinney has seen the association budget increase to more $7 million in 2015. He placed as a top ten finalist among On-site Managers nationally.Mike also recently was awarded the PCAM certification.  (See the related article on PCAM designees)

Finalists for Manager of the Year are selected from nomination essays and recommendations from clients, supervisors and others with whom they serve professionally.

Michael Lesku

“Mike brings a wealth of experience to Stonebridge Ranch Community Association, and I have been frequently amazed at the encyclopedic knowledge he has of all areas of association management and leadership,” said Richard Macfee, Treasurer on the Board of Directors, in his recommendation.   “He is a trusted resource for the board and is a major reason that the board has functioned as smoothly and efficiently over the past 7 years that I have been on the board. The consummate professional, he is meticulous in his research and attention to detail in planning and budget skills.”

Lisa Swan, Board Treasurer of Parker Lakes Estates HOA wrote:  “Alice has done an exemplary job as the manager of Parker Lakes Estates HOA and has surpassed the knowledge, experience and customer service that I have experienced (previously).” 

“Alice has a very positive, optimistic and professional approach to all of her communications, which helps the board resolve homeowner issues quickly and efficiently.  She has exceeded my expectations of a property manager,” said Swan.

Five CMA Managers Earn Top Career Credentials

 CMA is proud to recognize five outstanding staff members who have earned the highest professional credential awarded in the Community Management industry, the PCAM (Professional Community Association Manager). 

Two staff members were recognized for this accomplishment at the recent national conference of the Community Association Institute (CAI). 

They are:

Alice McKee, On-site Manager of

Heritage Lakes in Frisco, previously
was a manager in CMA’s Allen Region
and joined the company in 2007.

Michele Harris, Association Manager

in  CMA's Mid Cities Region, joined

CMA in 2011. She has managed HOAs
for more than 30 years.

The PCAM designation was also conferred on the following individuals who will be recognized at the 2016 national conference: 

Rob Koop, Regional Vice President, Allen,

 joined CMA in 2004 as an Association
Manager and was promoted to Regional
Vice President in 2010.

Michael Lesku, On-site Manager of
Stonebridge Ranch Community Association
in McKinney,  joined CMA in 2007.

Teresa Lamb, Association Manager
in the Allen Region, joined CMA in
2009.

About the PCAM

CAI awards qualified professionals with credentials to improve the quality and effectiveness of community management designation:

Professional Community Association Manager

The pinnacle of community association management. The PCAM designation is the highest professional recognition available nationwide to managers who specialize in community association management. Experienced managers who want to demonstrate advanced skills and knowledge are recognized as one of the best and most experienced managers in the nation.

“CMA values professional development and strives to set the bar in our industry," said Judi Phares, president and CEO of CMA. "We’re delighted to have eight staff members with PCAMs who serve as role models.  I congratulate our new PCAMs for this tremendous achievement.”

To learn more about CMA’s professional industry credentials, view this page. 

CMA Then and Now

Manager Admires Commitment to Values and Innovation

Rose Hill joined CMA in 1998 and advanced to the positon of Assistant Controller, a role in which she supervised Collections, Closing and Customer Care services.

Rose Hill, CMA Association Manager

Rose left CMA in 2009 and took a position as a Controller for a steel fabrication company, which gave her a more structured schedule and time to be with her family.  Serving in that role for three and a half years, she organized all their financial systems and fine-tuned their processes.  

“After that first year and a half, I didn’t have anything new to challenge my mind,” says Rose. “I couldn’t very well change how steel was fabricated! "

What made you want to come back to CMA?  Having a positive impression of CMA’s business values and ready to tackle a fresh challenge, Rose returned to CMA in January, 2013, this time as an Association Manager. 

What has changed at CMA through the years?   Rose says there have been some big changes. The company has become more specialized. “I supervised Customer Care, Collections, Closing and was the “go to” person for Accounting, as needed, when I was Assistant Controller.  Now each of those responsibilities is overseen by different supervisors.

“CMA taught me that change is good, as they are always looking for better ways to serve their clients and assist those that work for them.  I felt CMA allowed me to grow in so many ways with the new challenges we continued to face in trying to be the best." 

Rose also observed the effect of changes to state laws in recent years, which have had an impact on the financial procedures CMA performs for HOAs. For example, homeowners benefit by being able to set up payment plans.

 

How would you characterize your experience with CMA “then” and how it has been now?  I feel like I was a big part of CMA’s growth during my first career here.  I learned so much during that time as CMA went through two software conversions, upgrading to new technology. 

 

What is it like being on the front line as an association manager?  Being a Manager allows me to continue to touch those areas that I had worked with before -- accounting, collections, customer care. Now I’m learning more about reading the documents and how they apply to the responsibility of the Homeowners Association.  And in a customer-facing role, it’s nice to see the results from your efforts."

Does it help that you’ve also worked on the financial side of the business?  “I think so.  It’s just second nature for me to see if any expenses look out of line and send an FYI to the Board so they know we are paying attention.   It helps me to explain the budget to those board members that may not understand, as well as being able to converse with those board members that are ”budget and numbers” people.

What things have not changed about CMA since you first came to work here?  CMA still values great teamwork and is always looking for ways to improve systems and processes.  I enjoy knowing each day will bring a new challenge. I’m fortunate to work with great people who are knowledgeable and helpful.

How Does Your Association Compare with a National Survey?

A recent national survey conducted by the Community Association Institute (CAI) revealed that managers and boards are mostly optimistic about the communities they serve. The national economy and housing market are improving—however slowly—and that means things are looking up for most associations, which is welcome relief to many communities that weathered some difficult years.

While some associations continue to feel the pinch, almost 90% of community managers and board members say their association’s overall financial health is "excellent" or "good," with 10% saying "fair" and only about 2% indicating "poor" financial health.

The results are based on responses from almost 1,000 community managers and association board members who completed CAI's 2014 State of Community Associations Survey.*

Looking ahead, almost 55% of managers and board members see their association’s financial condition being “much” or "slightly" better in the next five years, while about 42% expect little change. Less than 4% anticipate a turn for the worse in the next five years.

The results of one major topic of interest is summarized below.  More survey results will be featured in a blog post next week.

Assessments and Delinquencies

Almost 40% of associations did not increase assessments during the most recent budgetary cycle. Of those that did raise assessments, 33% of respondents say assessments increased 1 to 3%, while 17% report a 4 to 6% hike, 7% a 7 to 10% increase and 4% an increase of 10% or more. About 13% of associations levied a special assessment during the previous 12 months.

Most managers and board members are confident their homeowners believe they are getting a good value for their assessment dollars, with 26% "overwhelmingly" satisfied, 60% "for the most part" satisfied and 10% "somewhat" satisfied. Almost 5% acknowledge their members are "not really" satisfied with the value they are getting for their assessments.

Understanding that rates of assessment delinquency often reflect the health of a local economy and housing market, respondents were asked the percentage of owners who are behind on their payments to the association. About 81% of respondents say their delinquency rate is 6% or less, with three quarters of those in the 0 to 3% range. About 15% peg the delinquency rate at 7 to 15%, with 4% saying it’s more than 15%.

Asked if their associations pursue delinquencies differently than before the mortgage foreclosure crisis and economic downturn, 44% say they are now "much" or "somewhat" more aggressive, with a near-even split between the two. Almost 55% say their collection policies and approaches have remained largely consistent, while less than 2% say their associations have become less aggressive.

With more than 33,000 members dedicated to building better communities, CAI works in partnership with 60 chapters to provide information, education and resources to community associations and the professionals who support them. CAI’s mission is to inspire professionalism, effective leadership and responsible citizenship—ideals reflected in communities that are preferred places to call home. Visit www.caionline.org. 

* Survey Sample

Almost 40% of survey respondents are association board members, 35% are on-site managers and 25% are portfolio managers. The latter were asked to provide answers based on their largest association client. About 50% of respondents work for or serve on homeowners association boards, while 45% are in condominium communities. The remainder represent mixed-use communities and cooperatives. Percentages may not always equal 100 due to rounding and a small number of "don’t know" responses.

The findings are based on information provided by community managers and association board members who chose to complete the online survey. Since respondents are a self-selected sample of CAI members, the results are not offered as a scientifically valid representation of all managers and board members, but rather to provide a snapshot of associations from the perspective of managers and board members. The survey will be repeated annually so the data can be tracked over time.

Lake Ridge POA Builds Close Ties with Cities

by Chad McCurdy, President of Lake Ridge POA

Lake Ridge POA, which stretches across two municipalities of Cedar Hill and Grand Prairie, has forged close ties with Cedar Hill.  As Cedar Hill’s largest master-planned development, Lake Ridge has more than 1,300 homes located in the southwest corner of the city overlooking Joe Pool Lake.  It is some of the most beautiful and unique geography in North Texas.

The long term relationship with Cedar Hill has been a boon to master Lake Ridge POA and its seven sub association, a beneficial result of the involvement of many of the community’s POA board members/leaders who serve on municipal boards and maintain close contact with the city. 

 The community was recently honored by the City of Cedar Hill,
which named Lake Ridge the 2014 Premier Neighborhood.

At least five or our homeowners and POA leaders currently represent the community on the city Economic Development Council, the Planning and Zoning Board, the City Council, and the Neighborhood Advisory Board.   Mayor Pro Tem Chris Parvin is also a Lake Ridge homeowner.

When I first moved to Lake Ridge in 2007, there were no community activities. A community our size needs these types of activities so that we can get to know and trust each other. It was about this time that our golf tournament and the non-profit community foundation began.

The golf tournament has accomplished a lot for the community. Through sales of advertising and sponsorships we have donated money to local charities, paid for our newsletters and created a lot of goodwill within the city toward Lake Ridge. The golf tournament made others aware of what Lake Ridge had to offer. Real Estate prices are more reasonable, traffic is lighter and people are less hurried.

The years between 2008 and 2011 were challenging for a lot of neighborhoods. During the economic downturn we had over 100 bank owned properties in our community. Some of these homes were incomplete and either eyesores or outright hazards. We worked with the cities of Cedar Hill and Grand Prairie to apply pressure to either complete them or tear them down. Today the bank-owned properties in Lake Ridge are a thing of the past.

Lake Ridge is definitely seeing a rebound.  Since January 2014 there have been 124 welcome letters sent to new residents and 16 house plans submitted for new home construction. Currently 27 homes are under construction, not to mention all the homeowners who are adding new pools, patios, outdoor kitchens. 

The landscape committee and Board were involved with the new landscaping that was included in the walking/biking path projected that extends through the neighborhood. The city held their weekly construction meetings in the community center conference room. The bottom line is that we have a great working relationship with city officials and it benefits the community.

We don’t constantly come to the city with our hand out. We bring value to the table and help them solve their problems too. It is the recognition that we are stronger together than on our own that has brought us this far.

Editor’s note:  The community was recently honored by the City of Cedar Hill, which named Lake Ridge the 2014 Premier Neighborhood.

DFW's Top Neighborhoods

What makes the difference in the quality of life of your community?

CMA (RTI/Community Management Associates, Inc.) is pleased to manage dozens of HOAs that contribute to the great lifestyle and livability of the Dallas Fort Worth area. We congratulate the many communities which were recognized in the recent ranking of tops neighborhoods in the Dallas Morning News. We especially appreciate Association Board members and other community volunteers for working to make their communities wonderful places to live.

1 CENTRAL PLANO

Central Plano has found the formula for success: strong schools, low crime, impressive parks. Those things, along with easy commutes, corporate growth and a lifestyle and amenities that appeal to empty-nesters, make it the top neighborhood in the Dallas-Fort Worth area in the Dallas Morning News’ analysis.

The Frisco ISD schools that serve Central Plano — Anderson, Taylor, Borchardt and Riddle elementary schools and Fowler Middle School — are what powered the neighborhood to the top over many neighborhoods that were similar.

The neighborhood, largely between Preston Road and U.S. Highway 75, also scored as the top spot for empty-nesters, and the area near Legacy Town Center was rated high for walkability.

The community has put a premium on parks, and with Russell Creek Park and a greenbelt trail that links it to other green spaces, there’s no shortage of outdoor spaces to explore.

Central Plano was among 10 North Texas communities that recorded areas of virtually zero serious crime in the last year, making it one of the safest neighborhoods to live in.

To read the full list of top Dallas area neighborhoods, click here.

And across the web, you'll find more rankings and data here:   Top 10 Best Cities to Live in America

And the specific Plano page here: Plano Livability Score