Membership Engagement Crucial
As I have alluded to in my earlier posts, the 2009 Financial Crisis aftermath resulted in HOA communities experiencing a sharp increase in the number of non-primary/secondary residence owners in their memberships; with many of these members composed of REITs and / or corporations.
In my experiences as an Association Member and Director, I have found that the bulk of HOA community engagement comes from primary and secondary residence owner members.
That said, communities in my area regularly have an average of over 25% non primary / secondary residence owner members, which in my opinion substantially affects voter pool size and makes primary / secondary residence owner member votes even more impactful and important to the community.
For example: The community I live in has 515 homes with a non primary / secondary residence owner percent at ~26%.
In a worst-case scenario (all non primary / secondary residence owners not voting) the voter pool would be pared to ~382, with many HOA decisions needing a percentage of total owners (515) to be implemented.
The importance of Primary / Secondary Residence Homeowner engagement can be seen in the following:
- COMMUNAL
- Primary / Secondary Residence owners have more of a vested interest in the community longer term
- Primary / Secondary Residence owners usually have lived in the community longer and can spot trends / issues
- FINANCIAL
- Primary / Secondary Residence Homeowners pay the dues themselves, cannot pass on to a renter
- High HOA dues can negatively affect potential sales, especially if nearby similarly sized communities have dues that are lower
- Primary / Secondary Residence Homeowners are grappling with rising property taxes, insurance premiums and other fees
- MANAGERIAL
- Primary / Secondary Residence Homeowners are far more likely to become Board Members
- Primary / Secondary Residence Homeowners are more likely to vote on initiatives and in elections
- The Associations Board of Directors is the only buffer between their non-profit Association and the for-profit Community Asset Management companies (see: CAM ratings below)
- Again, many big changes to By Laws / CC&Rs need a substantial percentage of total membership to vote
CAM RATINGS 2024
If you are a Primary or Secondary Residence homeowner in your community, I encourage you to get involved by attending meetings, vote, and if you can; run for a Board position.
Have a wonderful 2026.
