9.18 PCA

GATED COMMUNITIES: A CASE FOR MERGED LEADERSHIP… Reflecting on the independence between governance of the private club and governance of the homeowners association (HOA) in many gated developments, the president of a club research and facilities planning firm concludes that merged leadership would be better.

Frank Vain of The McMahon Group said because an HOA is obligated to protect home values, it also has by extension interest in the club’s success. Vain pointed to the general agreement of industry analysts that home prices are affected by the attractiveness of the club. Many estimates suggest club quality drives 20 to 40 percent of a home’s value, Vain said.

“If the HOA doesn’t have control of the club, it is vulnerable to forces that can significantly impact its con- stituents, ranging from poor performance to outright failure,” Vain wrote in the company publication, The McMahon Report.