Exploring the Future of Governance in Community Associations

Envisioning the future might not necessarily mean jet packs and flying cars, but significant shifts lie ahead in how community associations operate.

A group of 50 experts, members, and stakeholders came together to explore the anticipated changes in community association governance. Their collaborative insights have been documented to provide a glimpse into what the future might hold.

Looking ahead is crucial for effective community management. By anticipating shifts, best practices can be established to deliver exceptional services to dynamic communities.

Let us delve into the considerations for the future of community association governance.

There is no one-size-fits-all model for community association governance

Different communities have diverse needs. Smaller associations often find themselves burdened with rules suited for larger entities, creating unnecessary hurdles. Future legislators, developers, and associations need to recognize these distinctions. A trend emerging in this context is "policy governance," an approach that outlines specific parameters set by the board, with management expected to operate within these limits.

Training for volunteer board members

Volunteer board members often manage associations comparable to multi-million-dollar corporations, making proper training crucial. Excellent property management companies can offer essential support and training for board roles, ensuring effective governance.

Reevaluating reserve studies

The significance of well-funded reserves is often underestimated by developers, legislators, and other stakeholders before transferring community control to associations and owners. Advocating for state statutes that require complete and adequately funded reserve studies as part of the initial community documents can provide a layer of consumer protection and draw more support.

Demographics shift everything

With an aging population, millennial homeowners, and increasingly diverse communities, associations must adjust their focus. Older residents choosing to stay in their homes necessitate strategies tailored for retirement-style living. Millennials may push for fewer formal meetings, more digital communication, and a greater focus on community-building through social media. Diverse communities require bilingual communications and meetings, highlighting the importance of effective property management in navigating these challenges.

Tech rules

The demand for electronic communication and online transactions is rising, driven largely by younger residents. This shift is expected to streamline processes and enhance engagement, particularly through innovations such as online board elections. Leading property management companies will need to provide technological solutions that benefit both residents and board members.

Trade organizations will become more important

As state-by-state legislation continues to impact associations, a disconnect often exists between laws and neighborhood realities. Trade organizations, like the Community Associations Institute, play a critical role in uniting the industry to advocate for practical, sensible statutes. They also help forge strategic partnerships with realtors and other relevant groups.

Is your board prepared for the future of community association governance? Consider these insights and implement them to stay ahead in an ever-evolving landscape.