Latest US Strata Title Research Data

My friend Clifford Treese has been working in the strata and community association sector for a long time and pioneered information services for owners, associations and managers in the US.

Part of his work involves researching and developing community association data for the Foundation for Community Association Research Foundation (CARF) and for CAI and publishing it regularly.

This time around the new Community Association Fact Book 2013 has 1,000-plus pages and is organised into three parts including 51 State Summaries.

The first part is a "Statistical Review 2013" over-viewing national and state association data.

The second part, "Community Association Fact Book 2013," covers the history and configurations of various associations as well as the major issues and trends impacting them today. It includes sections on governance and best practices, how associations function in other countries and dozens of links for more information.

The third part includes "51 State Summaries," which lists housing and population data, and resources for information about legislation and regulations for all 50 states and the District of Columbia

See this link for the new Community Association Fact Book.

Its a fantastic resource for anyone involved with strata and community title in the US (and elsewhere).   I just wish there was one for strata stakeholders in every county.

This article from the Chicago Tribune about the Fact Book includes comments from Julie Cramer, who serves on the board of trustees for the national Community Associations Institute explaining that Fact Book gives legislators and municipalities a clearer picture as to the vast number of associations and residents and saying that "They don't always understand how many people are affected by their legislation," she said. "It's a big percentage of the housing market, but you can't always tell by looking at a home that it is in an association."  

Great work (again) CAI and Clifford.

Francesco ...

The NSW Strata Law Reform Mirage

It seems that the anxiously awaited and much reported NSW strata law reforms are being delayed (again) because the new amendment bill has ‘overlaps and inconsistencies’ that need be addressed first and the government wants to wait until after the next election in March 2015.   




So, our new strata laws are now not planned to start until January 2016.  And, at least to me, they're looking more like a strata title mirage than reality.

The history of the latest NSW strata law reform programme goes something like this - 


April 2011 - Anthony Roberts appointed Minister for Fair Trading 



July 2011 - Government announces that will undertake major reform of NSW strata title laws



December 2011 - Global Access Partners conducts online forum and consultation programme for 3 months



September 2012 - OFT Dicussion Paper released for submissions over 3 months



Early 2013 - Roundtable meeting with industry stakeholder groups


November 2013 - OFT Position Paper released with reform proposals

December 2013 - Stuart Ayres appointed Minister for Fair Trading 



January 2014 - Draft bill circulated to industry stakeholders for comments



March 2014 - Industry stakeholders advised strata reform bill would be introduced to parliament in June-July 2014



April 2014 - Matthew Mason-Cox appointed Minister for Fair Trading



June 2014 - Industry stakeholders advised strata reform bill needs revision and would not be introduced to parliament until May-June 2015

That's a lot of of time for changes that are universally agreed as necessary.  

It seems to be a bit like trying to get something major approved and done in a strata corporation - where there's always another good reason to delay things, suggestions to make more enquiries, proposals to change, widen or narrow the issues covered and a tendency to have a bit more consultation.  Fortunately, there's no special levy associated with the law reforms that needs approval or it might never happen. 


You can find out more about strata law reforms direct from OFT here. 

Assuming this latest reform timetable is met, then it will have taken almost half a decade to get these changes finalised.  By that time the strata and community title sector probably need a few more reforms.

The good news is that we’re now going to also have NSW community title law reforms and they will only take another 18 months.
  After all it's only 25 years since the community title laws were introduced.

So, I'm not going to rush to prepare for the new strata or community title laws quite yet. 




Francesco 
  

Where's the Strata Thinking for Tomorrow?

Despite the hyperactivity on Australian strata law reforms (at least 4 of 8 states and territories underway at present) and the grand statements made in NSW that the new laws will 'future proof' strata title, the various proposals and draft reforms are typically more of the same.

For the most part they are backwards focused; reacting to vocal interest groups and minorities; dealing with problems that have already occurred; merely recognise current technologies rather than prepare for the future; and; continue the default position in current urban planning and real estate rather than adapt or advance them to deal with a higher density future for strata stakeholders.

In short, there's no real innovation or deep thinking about strata and community title fundamentals.

Fortunately some people are thinking about the future of strata, what issues will arise (and why) and some new ways to think about those things.

A good example of that is the recent paper by academics Hazel Easthope, Jan Warnken, Cathy Sherry, Eddo Coiacetto, Dianne Dredge, Chris Guilding, Nicole Johnston, Dawne Lamminmaki & Sacha Reid called How Property Title Impacts Urban Consolidation: A Life Cycle Examination of Multi-title Developments is a must read.  Or, at least read the Abstract below.

Abstract

Continuing urbanisation is triggering an increase in multi-titled housing internationally. This trend has given rise to a substantial research interest in the social consequences of higher density living. Fewer enquiries have been directed to examining how property title subdivisions generate social issues in multi-titled housing. This is a significant gap in the literature, as the tensions inherent in multi-title developments have significant implications for individuals, developments and entire metropolitan areas. This article employs a life cycle framework to examine the profound operational and governance challenges that are associated with the fusion of private lot ownership with common property ownership. The article calls for a more explicit recognition of these challenges by academics, policymakers, practitioners and the broader community.

Scattered through the broad ranging discussion in the paper, they've identified a range of day-to-day and policy issues that need grappling with if Australian strata and community title wants to avoid becoming second tier real estate.

You can find the entire paper here (but unless you're a student or academic) you'll have to pay to get.


Francesco ...

Sydney High Rise on Steroids

Sydney has fancied itself as a global city and consistently ranks high in various international comparisons.  And, there’s no doubt that it’s a great place to live.

But, in terms of high rise buildings and high density living it is falling behind many other established and newer cities.  That’s not surprising internationally when you consider the dizzying heights and massively scaled developments in the US, Middle East, India and China.  But, Sydney’s also falling behind Melbourne and Brisbane where taller buildings are now being be built.

But that might change if some new proposals Sydney reported in the Fifth Estate last week are implemented.

If Chris Johnson, of the Urban Taskforce, gets his way then the restrictions on building height in the Sydney and North Sydney business districts would be removed and our tallest building, the 309 metre Sydney Tower, will soon be dwarfed by new mega buildings.

Just look at some of the computer generated images of what things could look like in Sydney's future. 

It’s like Sydney buildings started taking steroids and suddenly got a whole lot bigger.  

Can’t wait to see it happen.

Francesco ...

PSST - Wanna be a strata committee member?

As an operational structure, strata and community title associations need owners to volunteer as committee members.

And whilst it makes logical sense that after investing significant amounts of their wealth into a strata apartment, owners would want to be committee members for the building, there would be more volunteers than available committee positions and elections would be necessary.  So, most strata laws and procedures are based on those assumptions about committees.

But, my experience suggests a very different situation in the real world of strata committees which is dominated by the following key features.

• Low owner participation levels - it's hard to get meeting quorums and even harder to find committee volunteers
• Long term committee appointees - appointed committee members tend to stay in those roles for a long time
• Increasing compliance requirements - committees have more and more regulatory controls and responsibilities impacting on them
• High owner complaint levels - when lot owners contact committee members its mostly about an immediate problem they have
• Single issue membership - where owners join committees to resolve or further a single issue that concerns or interests them 
• Inadequate resources - there are very few tools to help committee members in their roles

All of which have and are conspiring to discourage committee membership and participation.

This status quo has emerged over a long time to favour and entrench the existing vested interests - which are not always what's best for the strata building and/or the lot owners - and to concentrate decision making and power in strata buildings.

Funnily enough, many law reforms proposals are worsening things.  For example, in NSW there are law reform proposals and suggestions to further lower strata meeting quorums and restrict proxies (leading to even lower levels of owner participation), moves to increase committee member disclosure requirements, introduce committee training requirements, reduce committee power and increase committee accountability (making it harder to become and riskier to be a committee member), and changes to increase committee sizes (making it easier for anyone to join a committee and enabling single issue members).

What's actually needed to get better strata outcomes are more owners participating in committees (and meetings) and that requires more good reasons for owners to want to join strata committees with positive outcomes.  That's not easy.

But, I was encouraged by this recent article by Marc Bhalla in Condo Voice about his owner experiences as a committee member.  It's worth reading to help reset negative perceptions about strata committees and start you thinking about committee participation in different ways.

Francesco ...