Visit any condominium community and you’re likely to see two populations: young first-time homeowners and empty-nesters and retirees. Each group has its own ideas of what association living should be, and those ideas often clash.
“I’ve seen some bitter battles,” said certified public accountant Chris Nyborg of Hanover Park, who specializes in association finance. “People at the end of the home-buying cycle and who may be on fixed incomes say, `We’ve never done it that way and we don’t care’ about something like concierge services” and they’re “competing with younger people who say, `We do care and we’re willing to spend the money.'”
“I’m seeing the generation gap get wider and wider, depending on the association,” said Paul Grucza, immediate past president of the Community Associations Institute in Alexandria, Va., and regional vice president of RTI/Community Management Associates in Dallas.
The gap exists because condos are the housing choice for both demographic groups. According to the National Association of Realtors’ 2004 Profile of Home Buyers and Sellers, 45 percent of condo purchases were made by first-time buyers with a median age of 32. Fifty-four percent of condo purchases were made by buyers 45 and older, largely empty-nesters, and 18 percent were made by buyers 65 and older.
“The `bookends’ trend has been going on for some time,” said Realtors spokesman Walter Molony. “First-time buyers have always been a large component of the condo market, but the upper end began to grow following tax law changes in 1997,” which eliminated capital gains taxes for most people trading down to smaller and less expensive homes.
In addition to the newcomers, many older associations have populations of longtime owners who have aged in place, said association attorney David Sugar of Arnstein & Lehr in Chicago.
Just how polarized the factions can be varies by association and issue. One subject sure to raise some dander is money.
“I don’t want to stereotype, but from my experience the older group is often very concerned with assessment increases of even small amounts,” said Christine Evans, president of Vanguard Community Management in Schaumburg. “A couple of dollars a month is a big deal to them. The younger ones might complain about it, but they usually take it in stride. They’re the ones spending $4 on a cup of coffee at Starbucks.”
As for reserves, younger residents don’t always understand why they should put away money for a roof that won’t be needed for many years, long after they have moved out, she said.
In an association mix of older residents with limited means and younger residents who spent everything on down payments, special assessments are a disaster, Sugar said.
“In new developments, many times you have [empty-nesters] who raised their families and moved into the city from the suburbs,” he said. “They tend to be fairly well off financially and better able to withstand a special assessment or increase in assessments.”
“Sometimes special assessments work better with seniors,” said Grucza. “When it comes to putting money in reserves, their mantra may be, `I’m not going to be here to see it.'”
“Most groups are pretty much aware of the really essential things,” said Evans. “They all know if there is water penetration, that has to come first. Given discretionary funds, the younger ones think [association] Web sites are a great idea and the older ones ask why?”
The most senior of residents may prefer to spend money on services such as delivery of goods and bus transportation that will help them remain longer in their homes, Grucza said.
Other hot topics that seniors relate to is lifestyle. Notable among them: who isn’t following the rules and who is making too much noise and who is complaining about whom.
“It’s all in how people view their homes,” said Evans. “Younger people view it as a steppingstone to where they are going. Older people may view it as their last stop. It makes for different views and opinions.”
“Newer residents may not be aware of all the procedures or be receptive to the procedures such as how to renovate or apply for a storage locker that people who have been there a while know,” said Lou Lutz, president of Legum & Norman Mid-West in Chicago and Glen Ellyn. Rules and procedures “seem too burdensome or too bureaucratic.”
Another source of conflict is owners who renovate their units, Sugar said.
“A new owner comes in to a unit that has been furnished the same way for 30 years and wants to put in hard-surface flooring or gut a kitchen,” he said. “Older residents are often home during the day and not used to having major construction going on.”
Which side wins often depends on who controls the board. In long-standing associations, that usually means the older owners, said Sugar.
“I don’t see tremendous changes on those boards,” he said.
“To be fair, the senior association members generally have more time available to devote to volunteer responsibilities,” said Gene Fisher, who falls into that category. He is a board president and executive director of the Diversey Harbor Lakeview Association, a coalition of about 30 Lincoln Park high-rises.
“Some veteran condo [owners] see this lack of involvement as apathy and they are concerned about what this portends for the future of their associations.”
His association launched a mentoring program to identify younger, inactive residents and encourage their participation. It’s working. At the most recent election, two residents in their 30s were brought on board.
“Sometimes you’ve got younger folks who are trying to make a mark and contribute to the community and they are held back because of seasoned, career board people and they aren’t budging,” said Grucza. “It’s not all over, but you see it.”
In La Grange, 30-something Laura Geis resigned from her condo board of mostly older residents in frustration over budget and accountability matters.
“The relationship of the board to the owners seems to be that of a parent-child relationship as opposed to adults to adults,” she said.
With all this disparity, can everyone get along? They can, when given a dose of compromise and shared vision.
Younger residents may not get themselves elected as board president the first time around, but they can attend meetings and look for openings where their services will be valued, said Evans. “Maybe the board is struggling with how to deal with wetlands, which is a newer problem for some associations, and the person has some knowledge because he studied it in college or works for a company that does that.”
In Los Angeles, William Huss is a past president the Bunker Hill Tower Homeowners Association, former superior court judge and co-author of “Working with Your Homeowners Association: A Guide to Effective Community Living” (Sphinx Publishing, 2003). He’s also a professional mediator who offers this technique for those tricky issues:
Form a committee made up representatives from both groups. Have them draw up what they would like the association to do for their needs. Invite them to meet together. Determine what they have in common. Define the issues that are specific for each group and try to work out solutions, particularly those that don’t present direct conflict.
“Next thing you know, you’ve got something everybody can live with,” he said. Most people will lose graciously if they believe they have been listened to and treated fairly, he said.
Grucza agrees. “Take each issue and work toward middle ground,” he said. “An important element of the association concept is give and take.”
Whatever you do, don’t make exceptions for any group or individual, said Huss.
“You’ll create chaos and animosity,” he said. There are people watching for special treatment, and they’ll nail you on it.”
Another approach is the one Lutz has taken: Consider how a decision will affect property values. Using high-speed Internet lines as an example, he said, “If everybody else out there has it all ready and you’re considering it, whether or not you’ll ever use it as a board member is irrelevant. It probably affects market values. Check with a [real estate agent] or someone who can say, `People ask about this and when you don’t have it, it’s not a positive.'”
If everyone puts the association ahead of individual agendas, everything will turn out pretty well, said accountant Nyborg.
“The responsibility goes both ways,” she said. “Younger people might have to understand the financial constraints of the older ones and, conversely, older people can’t be afraid of technology or financial effects on a personal level. Everyone has to think of the long-term effects to the association.”
