CEO’S MESSAGE
Raison d’Etre – The Reason for
What a beautiful phrase, raison d’etre (reason for being). It every board member should consider and collectively agree
phrase engenders humanity. Frightening 2023TheMegatrends Shift The words roll from one’s t stark business senses and adds the element of humanity to HOA Business Reality a board: Strategic planning, execution and evaluation; mis
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management. The business realities should be reflective of common values of individuals in conduct. the community. community California has more than 54,000 2023 HOA Communities are imperfect – they are14.7 made of huma HOAsbecause with approximately million Megatrends unique residents living in them. It humans is relating. Humans using. Human living. Basically, b • Systemic extremely challenging for boards to being human, sometimes forget that manag Inflation communities manage these HOAs, especially given • Chronic Labor establish norms for a successful community. a sense, th the rapidly changing businessIn and Shortages Its purpose legal environment in which they serve. the community. is to establish order and eleva The constant barrage of new laws and • Community progress and pace by establishing norms and constraints judicial decisions makes the practical Mental Health to benefit all. role of being a board director ever Awareness
ifty years ago, the Executive Council of Home Owners was founded to organize the industry and help establish a set of laws that govern its growth and bring together homeowners, boards, and industry professionals. Its mission was to foster a better quality of life in communities managed by homeowners associations. It successfully advocated for a more challenging and complex. legal framework in Sacramento It seems apparent that board must understand This leadership year marks a new, materially allowing communities to empower different post-pandemic with an homeowners to self-manage the common areas of owners in order to orchestrate a era sense of emerging community and g new reality; 2023 was ushered in with frightening their communities and to ensure a safe and enjoyable and protect community values. The purpose of a board, ther megatrends that are expected to materially disrupt place to live, respectful of individual homeowner build community based on common for the good of the ability of volunteer boards tovalues successfully interests and shared community values. manage the business of their communities. And while Today, the vision and values established in the It takes time to orchestrate community. takes time the Davis-Stirling a Act provides someIt protection for to kno mission of Echo still ring true. For the most part, the the HOAvoices entity, it is threatened its own weight of these values have been incorporated into a legal time to listen to and build by a vision reflective of c amendments and propensity for rapid change, which framework called the Davis-Stirling Act. This act and you will be more effective as a board member and satis is hurting the very communities it was established to allows homeowners to manage their common reason forprotect being on the board. and preserve. In 2023, the HOA industry is interests. And even though there have your been many undergoing a fundamental shift. It is time to identify, assaults and judicial decisions that have challenged ECHO ishas committed to helping homeowner boards and resid understand, and manage the and remodeled the framework, this body of laws change it’s not survived as the preeminent frameworking within which and advocacy – –this is going our “raison d’etre”. away. HOA communities exist. In its evolution over the The threads in the years, the Davis-Stirling Act has protected individual articles are indicative rights and liberties while giving legal weight to the importance of building norms and standards for Continued on page 34
Sincerely,
ECHO CHIEF EXECUTIVE OFFICER 6
MARCH 2023 | ECHO journal
David Zepponi Executive Director