Community associations are subject to state laws that control how associations are established, governed and managed. This state-based regulatory system has proven successful because it is predicated on the principle of local control over land-use and real estate decisions. CAI supports effective state regulation that ensures community association housing is developed, maintained, governed, and managed with sound public policy objectives and standards that protect homeowners, volunteer board members, management and the community association as a whole. State legislation should:
● Provide for full and fair protection of the consumer, including existing residents in conversion projects, through the disclosure of all material facts relating to the development, operation and ownership of such housing.
● Be comprehensive in its coverage of the material aspects of the development, governance, management, and operation of this housing form.
● Provide adequate standards to promote the viability and sustainability of the community association.
● Provide for flexibility for communities to develop rules for the common good. State legislation should not be used as a solution for individual constituent complaints.
CAI believes that these objectives are best achieved by state governments and not by or through legislative or regulatory procedures at the federal level or at the local government level. The likely diversity of legislative policies adopted by local (city and county) governments would unnecessarily inhibit the process across local jurisdictional lines, while enactments at the federal level would be too broad in scope to achieve these goals and fail to reflect and respond to the unique character and needs of local markets.
CAI recommends that when state governments amend their community association laws they consider the need for updated and comprehensive legislation to regulate the development of community association housing consistent with the listed goals. Moreover, in undertaking such review, state governments are urged to consider and give favorable treatment to one or more of the uniform acts, such as the Uniform Common Interest Ownership Act (UCIOA).
CAI, with our network of 33,000 members and hundreds of volunteer leaders throughout the country, work to clarify issues, preserve policies and protect the interests of the 65 million people living and working in America's community associations by staying in close communication with Congress, the administration, state and local officials and regulatory bodies, as well as the general public.
For a current conversation on community association government affairs issues, please visit www.caionline.org/government.