Understanding private elitist HOAs as social welfare HOAs
Data on HOA member demographics is scare but I’ve been able to uncover documents, 11 years apart, that lead one to believe that H-O-As are elitist for the most part. A CAI survey showed 79% respondents with incomes over $50,000 and 86% with some college of more. US Census showed 24.4% and 44.9% respectively. A confirming study on a large-scale H-O-A showed 88.1% with some college or more and 76.4% with income over $45,000.
According to CAI’s LSA (large-scale associations) category of 1,000 or more units, a Nevada CAI survey showed a mere 2.0% were LSAs. This emphasis by CAI on LSAs, a small minority of HOAs across the country, impacts all H-O-As of every size in the state as a result of its intense lobbying efforts, its one size fits all policy.
These surveys are not consistent with the totality of social welfare HOAs as contained in the IRS databases of 36,532 organizations filing under (c)4. Just 10.8% (3,931) of these organizations met the criteria for “homeowner associations” under the IRS subcategories, a far contrast with the surveys. Analyzing the justification by the IRS for one large-scale H-O-A raised concerns about the (c)4 tax-exempt process.
The absence of any discussion by SCG, a large-scale H-O-A, of it’s social welfare status and related activities is compelling. Based on my many years exposure to HOA legalities, I would hazard a guess that the board had advisers and assistance in preparing and filing its application. SCG has close ties to CAI by virtue of its directors being CAI members, its attorney and CAM being CAI members, and its accounting firm, Mansperger Patterson & McMullin, also being a CAI member.
Read the full research study at elitist H-O-As.
HOA Constitutional Government 