Community Associations Institute
PUBLIC AFFAIRS EXPERTISE
Community Associations Institute
CHALLENGE
Legislation To Rein In Bad Apple HOAs Creates Unintended Consequences For Responsible Homeowners
After the media showcased a homeowners association’s (HOA) foreclosure on a senior resident, consumer protection legislation was created and sailed through both houses. This well-intentioned legislation unfortunately held the potential to financially strap small communities and hurt residents on fixed incomes. The Community Associations Institute (CAI) enlisted Perry Communications Group at the end of the legislative session to secure a veto from the Governor.
SOLUTION
Acknowledge The Need For A Legislative Solution; Rally Support Urging The Governor To Find A Better Answer
Perry Communications Group’s strategy mobilized Californians to tell Governor Schwarzenegger and the Administration their untold story – responsible homeowners and business interests would be unintentionally hurt rather than helped by AB 2598. The grassroots effort included: a dedicated Web site that collected homeowner testimonials and facilitated Administration outreach, a letter writing campaign that generated substantial correspondence saluting the Governor for finding the right answer for HOA residents and an issues ad in The Sacramento Bee that featured an open letter signed by thousands of Californians. Earned media showcasing homeowners and community leaders further elevated the shortcomings of the current measure and outlined opportunities to bring forth a better solution in the next legislative session.
RESULT
Legislation Vetoed; CAI Encourages Stakeholders To Come Together To Find A Win-Win Solution
- Governor Schwarzenegger pointed to CAI’s major arguments in his veto letter and called for a better solution.
- CAI emerged as a political leader on HOA issues and achieved targeted media coverage to reshape public perceptions of HOAs.
- Following the legislative session, CAI proactively invited all stakeholder groups – senior interests, consumer advocates, lenders, realtors, developers, HOA managers and residents – to form a working roundtable where concerns and potential remedies could be shared.
- In 2005, a foreclosure law with broad stakeholder support was passed by the legislature and enacted into law.
- The HOA Roundtable continues to be an impartial forum where community issues can be better understood and amicably resolved.
