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1 COMMUNITY GOVERNANCE FORECAST Maturation of the Community Association Industry Attracts Legislative Scrutiny Just as individuals grow, learn, and mature, the same is true for many industries and companies, including the community association industry. The numbers* are quite staggering as to the growth of community associations nationwide: • Nearly 70 million people, 21.3 percent of the population, in the U.S. now reside in community associations; • There are more than 340,000 community associations nationwide; • Annual assessments/dues paid by owners in community associations total $88 billion; and • More than 2.3 million volunteer board and committee members serve their community associations performing 80 million hours of annual service. As part of community association living, associations and their owners are governed by a specific set of legal documents that establish the rules by which the association operates and under which residents agree to abide. These legal documents are filed in the county where the association exists and are often statutorily required to be provided to potential buyers. Homeownership, whether a condominium or single family home, is more than likely a person's most costly and valuable investment. Historically, residences in community associations are valued 5 to 6 percent higher than other homes, which can be a motivation for someone buying into such a community. The rapid growth of community associations nationwide has fueled increased scrutiny of this industry in state legislatures over not only the association's operation and management but also its means of enforcing its rules. With this increased scrutiny, a growing number of laws are passed each year and often the courts are asked to weigh in, which creates another regulatory source for periodically reshaping the operational landscape of associations. * Source: 2016 Community Association Fact Book, CAI >>

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