New Research Shows Community Associations Reduce Municipal Costs While Delivering Essential Services

Foundation for Community Association Research survey highlights how community associations support local governments through infrastructure, services, and economic contributions. 

 Across the United States, community associations, including homeowners associations, condominium associations, and housing cooperatives, play a critical and often under-recognized role in supporting local governments. They do this by delivering essential services, maintaining infrastructure, and contributing to local economies, according to new research from the Foundation for Community Association Research. 

Findings from the Foundation’s Public Benefit of Community Associations to Local Municipalities survey show that community associations play an essential role in local governance and infrastructure and warrant greater recognition in municipal planning and public policy. 

“Community associations quietly absorb millions of dollars in infrastructure and service costs that would otherwise be borne by local governments and taxpayers,” says Jake Gold, CAE, executive director of the Foundation for Community Association Research. “This research helps quantify the public value community associations provide every day.” 

Community Associations as Local Service Providers

Survey respondents report that associations commonly fund and manage services traditionally handled by municipalities, including: 

• Landscaping and open space maintenance (63%)
• Street maintenance and repairs (57%)
• Sidewalk maintenance (54%)
• Street lighting and signage (47%)
• Stormwater management systems (46%)
• Trash and recycling collection (43%)
• Snow removal (37%)

A Growing National Impact

Nationally, community associations are home to more than 77 million Americans across approximately 373,000 communities, representing more than one-third of U.S. housing, and their role in supporting local governments and public infrastructure continues to grow. Local delivery of services reduces pressure on municipal budgets while ensuring neighborhoods remain safe, functional, and well-maintained. 

Reducing Financial Burdens on Municipalities

More than three-quarters of respondents say their community association reduces the financial burden on local governments either significantly (38%) or somewhat (38%). Many associations report annual operating budgets exceeding $1 million, with substantial portions dedicated to infrastructure and services that benefit not only residents, but surrounding communities as well. 

Economic and Civic Contributions Beyond Association Boundaries

In addition to infrastructure and services, community associations contribute directly to local economies and civic life: 

• 90% hire local vendors or contractors for maintenance and operations
• 73% support local real estate values through ongoing community upkeep
• 25% promote nearby small businesses
• 16% host community events that attract visitors and nonresidents

Many associations also maintain parks, trails, lakes, and green space used by nearby residents, schools, and visitors, extending benefits well beyond association boundaries. 

Opportunities for Stronger Local Partnerships

Despite these contributions, only 18% of survey respondents believe local governments clearly recognize the value community associations provide. Participants identified several ways municipalities could strengthen collaboration, including: 

• Including community associations in local planning and zoning discussions (56%)
• Establishing regular communication with association leaders (53%)
• Offering grants, matching funds, or technical assistance for community improvements (50%)
• Partnering on shared services such as stormwater management and emergency preparedness (40%)

“Community associations are a form of housing where neighbors share both responsibility for and ownership of amenities and infrastructure,” says Dawn M. Bauman, CAE, chief executive officer of Community Associations Institute. “Local municipalities rely on this model to mitigate their burden of delivering municipal services to these communities. Recognizing that millions of Americans have ownership and responsibility in these communities, we encourage localities to engage associations in policy discussions to help municipalities better serve residents and make more informed policy decisions.” 

For additional research and data on community associations, visit foundation.caionline.org.  

BlaineTobin

Senior Media Relations Manager