Community Communication Corner
by Bob Gourley, MyEZCondo Founder, Member of CAI CT Board of Directors

Community Association Banking – The Greatest Story Never Told!

Did you know that as a homeowner in a community association, you are part of a banking empire that represents 41 billion dollars in operating revenue and another 35 billion dollars in investment accounts? These figures come to us courtesy of CAI National. I guess it’s a good thing that we don’t need our own government bailout plan! Or do we?

There is, perhaps, no greater business trust than that between a bank and its customers. Your association entered into an agreement to save with, and in some cases, borrow money from an institution. Monies collected as common fees and assessments are the life blood of any community association. Without them, the community would perish. Did your bank survive the most recent round of mergers, takeovers, and bailouts? Is your bank stronger or weaker because of the activity?

In a year that has seen some of our most venerated financial institutions crumble like a house of playing cards, there may never be a better time to tell the story of your community association’s banking policies and procedures. Sure, most of your residents know where their monthly checks get deposited (paper and electronic) but how many of them know why that particular institution was chosen or how strong that bank is in light of recent circumstances? If your association is financially strong enough to have a significant reserve, do your members know where it is invested? Now is a great time to let them know.

The Greatest Story Never Told
For a long time now, banking, in general, has been taken for granted. It has been a decision made by Board members and/or Property Managers. Community members had little or no say in which bank was chosen nor did they need to concern themselves with the process. Shopping for a bank often consisted of finding which bank would pay the highest interest rate on savings and charge the lowest rate on loans. If those were the only two criteria your community has used to make your community banking decisions, may I suggest it is time to reconsider your thinking?

The membership rosters of CAI National and CAI-CT are chock full of banks and lending institutions that service the community association marketplace. Some have gone as far as to position themselves as exclusive service providers to the community association marketplace, such as the aptly named Community Association Banc with a strong presence and service headquarters right here in CT. Others are more commonly known local brick and mortar institutions with divisions and dedicated personnel to service the community association marketplace, namely New Alliance Bank, Webster Bank, The Milford Bank, Rockland Trust, and Savings Institute Bank and Trust. Other institutions like Alliance Association Financial Services, National Co-operative Bank, Popular Association Banking, Union Bank of California, and Smart Street are divisions of larger regional banks that have moved into the lucrative area of HOA lending and financial services. All of these banks, along with their contact information can be found on our website at http://www.caict.org/vendor_directory.htm#Banking_Financial

Many banks were bolstered by the recent government bailout (your tax dollars), directly or indirectly. Your reason for choosing a bank to handle your community association banking needs is a story that needs to be told to your members. Banks that have survived (and in some cases, thrived) during this recent tumultuous turn of events have very interesting stories to tell and they want you to communicate that information to your members. They realize the importance of their relationship with their customers is of the utmost priority. So go ahead, tell the greatest story never told to your audience. Few things will make them feel as good as knowing that their money is safe and sound.

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