Appendix 1.

An analysis of 1999 CAI "Homeowner

Satisfaction" survey
November 19, 2002
Re-edited October 13, 2004
By George Staropoli (View author info)
Scottsdale, AZ - This survey can be found on the CAI web site under "Research
Foundation, Research Projects". It contains the published results and questions asked.
I found it highly questionable when I glanced through it a year ago, and I'm now
providing a more detailed analysis. Why? Because it is being used as propaganda against
homeowner interests -- the media buys into it, and so do the legislators.
We need to set the record straight.

Conclusions By CAI Regarding Its 1999 National Survey of Homeowner

Satisfaction:
Overall, Community Association members are very satisfied with the association in
which they live. This high level of satisfaction is evidenced by the fact that many
members (40%) would not consider selling their house even if given 15% above the
market value. Because of this high level of satisfaction, 48% of Community Association
members plan to live in a Community Association again, or plan to not move from their
current community.
The overall appearance of the community is the leading driver of most members wanting
to live in a Community Association again and of members' general satisfaction with their
community.
The financial attributes, location of the community, and responsiveness of the
Community Association are the factors that are the significant drivers of members not
wanting to sell their house under any economic circumstance.
An interesting finding was that non-members' most common reason for not living in a
Community Association was that there was not a Community Association that was near
enough for them to live in. This indicates a demand for more Community Associations.
Methodology how the survey was conducted
The Community Associations Institute commissioned The Gallup Organization to
conduct interviews with 401 homeowners who currently live in a Community
Association, to assess members' satisfaction with their community in general and
specifically with their Community Association. In addition, 3,289 homeowners who do

not live in a Community Association were also interviewed for comparison purposes. [It
appears that Gallup had to call so many non-HOA owners because they couldn't find
HOA owners].
The surveys were administered by a team of Gallup consumer telephone interviewers
between 4:00 p.m. and 10:00 p.m. local time from February 1, 1999 to February 15,
1999.
My comments:
[My logic may be difficult to follow, but that only reflects the unnecessary complexity in
the survey with respect to some very simple questions].
1. Why didn't they simply ask, "Are you satisfied living in your HOA?" This could have
then been followed by several questions as to why or why not. Instead, CAI proclaims
that Q12 is an indicator of satisfaction and avoids asking the direct question given above.
Q12 reads, "Based on your level of community satisfaction ... would you consider selling
your home" and titles this question in their results under "Indicators of Satisfaction".
2. CAI then proclaims, "because of this high level of satisfaction 48% plan to live in an
association again" Actually, their published results for this Q32 show only 37% in this
category of plan to live in an association again and 11% in the category of response,
"don't plan to move category". Looking at the actual Q32, we see that the "don't plan to
move" response is a secondary response, to the "why" question, that is, the interviewers
were asking for a reason why the respondent planned to live in an HOA again. However,
the response dont plan to move again was offered for both Q33 and again in another
question, Q34, without identifying the any breakdown between the two questions.
In other words, we don't know how many responded to the why question with not
planning to move from "No, I would not live in an HOA again'. Yet, CAI includes this as
part of the overall response to the question posed. The results are distorted and should
have been presented as, "of the 37% who said, yes, x% said because they didn't plan on
moving". Strictly speaking, this category of response should be taken out of the
percentage that responded YES. The question should have been asked, "If you were [not
the word plan] to move, would you live in an HOA again."
CAI failed to ask a direct question as to overall satisfaction, such as, Overall, are you
satisfied with your HOA? Instead, the response to the "not wanting to sell" question,
which was given in answer to another question, "do you plan to live in an HOA again" is
used to falsely demonstrate overall satisfaction.
3. Q10 asks, "Do you believe property values in your community are increasing rapidly,
slightly...' ". This question does not contain the important wording, "as compared to nonHOAs in your general community" .The survey took place in 1999 and property values
have been increasing, in general, for several years. Yet, CAI proclaims, "Eighty-five % of
Community Association members believe the value of their home is increasing ...

indicating that they feel the Community Association adds value to their home".
4. CAI makes use of the term "driver" to imply a causal relationship between responses
to several of these questions. Based on these questions and responses, it's hard to make a
sound inference that they are causally related. Example, based on the responses, CAI
claimed that "The overall appearance of the community is the leading driver of ...
wanting to live in a community association again". Since this Q32 was open ended,
allowing the respondent to make an entry, we can look at what answers made up this
true 37% response to the live again in HOA qusetion. Only 18% of that 37% who
would live again in an HOA responded with "upkeep of property", the leading response.
CAIs conclusion is highly over-stated. Only 18% said upkeep of property to be
classified as the motivating factor for staying in an HOA.
5. Q2 was asked only of non-HOA homeowners. It was an open-ended question asking,
"Why did you not choose to live in a community association". The only result published
with respect to the open-ended responses was the unsubstantiated "because there was no
community association around". No percentage of respondents was given. Was this "most
common" reply just 50%, 20%, or 10%?
Results that were not published
6. Q35 asks, "How well did you understand the community's covenants, rules and
restrictions before buying?" There was a ranked response list from "extremely good" to
"don't know". However, the answer to Q36 was published. It asked a similar question,
referring to the respondents knowledge as of now.
This is a very important omission directly affecting claims that homebuyers did have not
awareness or knowledge of the provisions of the CC&Rs and could not be viewed as
giving their consent to be governed by the HOA.
7. Of the 3200 odd non-HOA homeowners called by the Gallup people, only 2 of the 39
questions were asked of those that were not published. THIS IS A STUDY OF SOME
400 ASSOCIATION HOMEOWNERS.
8. Q1 was only asked of non-HOA homeowners. It asked, "what is your opinion of the
neighborhood you live in" Its results were not published.

Citizens for Constitutional Local Government, Inc

George K. Staropoli
http://pvtgov.org