> The underlying premises are flawed because they wrongly assume:
> 2. Directors are qualified to serve on the Association’s Board by dint of their professional background or extensive training by the Association.
> Alas, this is usually untrue. Most Directors have little or no relevant background in such areas as accounting, finance, government, or quantitative analysis.
The Communisty Associations Institute (C.A.I.) - the H.O.A. industry trade and lobbying organization - offers "education" for H.O.A. board members. "Education" which is intended to make it easier for C.A.I. managers, C.A.I. attorneys, and other C.A.I. vendors to use homeowners as their personal A.T.M. machines.
I especially like your suggestion that government - at all levels
> should be required to provide formal oversight over how Associations are run (analogous to what the SEC and Federal Department of Justice does for stocks, bonds, and other equities).
> 7. Explicitly and unambiguously require H.O.A. corporations to regularly produce, file with an appropriate state agency, and make freely available a “prospectus” type document.
The S.E.C. requires publicly traded corporations to do this, so that investors (and potential investors) can make informed decisions about their investments.
There is no reason that investors (and potential investors) in H.O.A.-burdened property should not have easy access to such information so they, too, can make informed decisions about their investment.
Lots of good stuff here, especially
> The underlying premises are flawed because they wrongly assume:
> 2. Directors are qualified to serve on the Association’s Board by dint of their professional background or extensive training by the Association.
> Alas, this is usually untrue. Most Directors have little or no relevant background in such areas as accounting, finance, government, or quantitative analysis.
The Communisty Associations Institute (C.A.I.) - the H.O.A. industry trade and lobbying organization - offers "education" for H.O.A. board members. "Education" which is intended to make it easier for C.A.I. managers, C.A.I. attorneys, and other C.A.I. vendors to use homeowners as their personal A.T.M. machines.
I especially like your suggestion that government - at all levels
> should be required to provide formal oversight over how Associations are run (analogous to what the SEC and Federal Department of Justice does for stocks, bonds, and other equities).
One of the items in my list of policy suggestions - which you can read at https://homeowners.substack.com/p/make-our-neighborhoods-great-again-224 - is
> 7. Explicitly and unambiguously require H.O.A. corporations to regularly produce, file with an appropriate state agency, and make freely available a “prospectus” type document.
The S.E.C. requires publicly traded corporations to do this, so that investors (and potential investors) can make informed decisions about their investments.
There is no reason that investors (and potential investors) in H.O.A.-burdened property should not have easy access to such information so they, too, can make informed decisions about their investment.