The January issue of the DORA HOA Info Office Complaints Report, contains a review of what exactly the HOA Information Office and Resource Center has done, seen and heard in the past year. Here is what stands out to me:
- The largest area of complaint (17% of the 477 complaints) relates to records and transparency issues;
- Most complaints come from low income mid-rise condominium associations;
- Colorado Springs/El Paso county had the highest number of complaints (21% of the 477 complaints).
What can we, in the industry, take away from this data?First, non-profit corporations are following in the steps of for-profit corporations where shareholders/members are demanding more transparency and more disclosure through records. Think Enron, Sarbanes-Oxley Act, etc.. If we do not continue to provide increased access to information and transparency, legislators will force it through law which may only apply to community associations. Second, it is likely that the high number of complaints coming from low income, mid-rise condominiums are a result of volunteer board members taking on duties beyond their scope of knowledge due to the lack of funds to hire professionals (association managers, attorneys, accountants, engineers, etc.). Lastly, with only 477 complaints, I wonder if this will at all impact the sunrise process currently underway with respect to credentialing or licensure and regulation of community association managers. 477 complaints from over an estimated 20,000 associations represents only 2.3% which may indicate that there really aren’t widespread problems in need of legislative fixes but rather a few abuses.