Federal and state legislation and regulation can sometimes be introduced overnight and, during a hectic legislative session, bills can move swiftly. Legal issues can arise almost as quickly. This page provides general government affairs insight (updates, overviews and trends), regulatory items affecting CAI's members, and legislative information of note or news. For specifics on industry federal and state legislation, log in to the Advocacy Center.
"Heads-Up" Archives
Manager Licensing
CAI 2009 Legislative Yearbook (4/2010)
CAI FAQ on FHA Condo Approval Recertification: (8/2010)
Continuing its implementation of the new condominium project approval process, the Federal Housing Administration (FHA) has released guidance for condominiums seeking project recertification. Read more ...
FHFA Proposed Ban on Private Transfer Fees - FAQ (8/2010)
On August 13, 2010, the Federal Housing Finance Agency (FHFA) issued a proposed regulation to ban the use of deed-based or covenant-based transfer fees. The proposal would prohibit Fannie Mae, Freddie Mac and all federal home loan banks from purchasing mortgages for properties in communities with deed-based transfer fees. While the target of the regulation appears to be private transfer fees that require a payment to a third party each time a property is sold, the proposed rule, as currently written, would include deed-based transfer fees used by many community associations. Read more ...
CAI Engages White House on Mortgage Issues: (8/2010)
CAI has engaged the White House on critical issues affecting the future of mortgage financing. Responding to a request for information from the White House, CAI, through its Federal Affairs Task Force, submitted comments on how the evolving federal requirements for mortgage qualification are affecting the more than 60 million residents of community associations. The comments also provided feedback on proposals to overhaul the entire federal mortgage finance system. Read more ...
FHFA Issues Draft Guidance on Deed Transfer Fees (8/2010)
On August 12, 2010, the Federal Housing Finance Agency (FHFA) issued draft guidance on so-called deed-based transfer fees. Under the draft guidance, communities that have deed -based transfer fees that require a payment at time of sale or transfer of property will not be eligible for mortgages underwritten by Fannie Mae, Freddie Mac or other federally supported mortgage underwriters. The guidance is in draft form and makes no distinction between transfer fees that go to support a community association and controversial transfer fees that require a payment to the developer or other third parties who have no ongoing relationship with the property. Read more ...
CAI Alerts Congress on Financial Services Reform Issues (6/2010)
Seeking to reign in the excesses of the banking system, Congress has passed a sweeping bill to reform the financial services industry. The bill would create a new agency, the Bureau of Consumer and Financial Protection, which would be empowered to regulate a broad array of financial transaction. As drafted, community associations and management companies could be considered financial institutions and fall under the regulatory scope of this new agency. In addition, a last minute amendment by Senator Mary Landrieu would create the potential for radical changes in the mortgage markets that could threaten community associations. In response to these challenges, CAI has sent a detailed letter to the chairs of the House and Senate Banking and Finance Committees. Read more ...
Health Care Reform FAQ (6/2010)
The Patient Protection and Affordable Care Act is the name of the key bill passed by Congress to overhaul the provision of health care in the United States. The law makes many consumer-friendly changes to health insurance, mandates that individuals obtain health insurance or face fines, and requires certain employers to provide health care insurance for their employees. The provisions of the law will be implemented in phases between 2010 and 2018. Read more ...
Governor Crist Signs Key Florida Senate Bill (6/2010)
On June 1, 2010, Florida Governor Charlie Crist signed the final version of SB 1196, passing the bill into law. CAI members’ timely emails to Governor Crist played a crucial role in communicating the necessity of this bill. The Florida community association industry will benefit from many of its provisions. By coordinating with CAI’s Florida Legislative Alliance, CAI’s members were able to send a clear and unified message to Tallahassee. All members that voiced their support to the governor for SB 1196 share in this victory.
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Lead Renovation, Repair and Painting Rule Now in Effect (6/2010) Most Americans have long been aware of the dangers of lead, particularly in paints. Recognizing these dangers, the Environmental Protection Agency (EPA) recently finalized its Lead Renovation, Repair and Painting (RRP) rule to protect people from the lead generated by renovation activities like sanding, cutting and demolition. This work can create hazardous lead dust and chips by disturbing lead‐based paint, which can be harmful to adults and children. Read more...
Data Protection, the Next Big Thing from the Feds? (6/2010)
Over the past several years, greater attention has been paid to issues related to protection of sensitive consumer data collected by businesses, government and other organizations as more consumers utilize the Internet for a host of personal and business transactions. High profile news reports of theft of millions of credit card numbers, social security numbers or other personal data are not uncommon. In fact, fear of identity theft has led to the emergence of data protection companies like Lifelock, which claim to protect consumers from identify theft. Read more ...
FTC Delays Red Flag Rules: (6/2010)
The FTC has announced it will again delay its so-called red-flag rules from taking effect pushing the date to December 1, 2010 from June 1, 2010. The new rules require businesses and organizations to take affirmative steps to protect consumer financial data from identify theft. The regulations have been criticized for being overly board and applying to too many organizations. Find out what the rules are and what they mean for you here
New Hampshire LAC Priority Lien Bill Enacted! (5/2010)
CAI’s New Hampshire Legislative Action Committee successfully passed legislation to protect community association finances. Working with the state legislature the LAC supported House Bill 1340 which establishes a limited priority lien right for associations. Read more ...
CAI Seeks Additional Revisions of FHA Condo Guidelines (5/2010)
As the federal government props up the finances of mortgage giant Fannie Mae and struggles to restructure the nation’s mortgage finance system, federal agencies are also re-examining their criteria for mortgages within condominium associations. Recently, the Federal Housing Administration (FHA) has indicated that it may revisit its most recent set of requirements for financing purchases within condominium associations. Read more ...
FHA Red Flag Rules Effective June 1, 2010 (5/2010)
The repeatedly delayed FHA Red Flag Rules are scheduled to take effect on June 1, 2010. The rules require that certain institutions adopt written policies to “flag” potential identity theft of customer data. The broadly written rules, while targeting financial institutions, may be applicable to some community associations. To make sure your association is in compliance, please review CAI’s guidance on this matter here and review our compliance template here.|
Congress Fails to Act on Flood Insurance Reauthorization (4/2010) Congress adjourned on Friday, March 26th without taking action to reauthorize the National Flood Insurance Program (NFIP). As a result the NFIP program expired on Sunday, March 28th 2010. While the program will be reauthorized at some point after Congress reconvenes in April, the immediate effect is that insurance providers will not be able issue new policies, renew current policies or amend existing ones.
CAI LACs Work to Protect Association Finances (3/2010)
In 2009, CAI LACs in Pennsylvania, Rhode Island and Nevada successfully passed or expanded state statutes that grant associations priority status in collecting past due assessments in foreclosures. Such legislation, referred to as “Super Priority Liens,” help ensure that associations can adequately fund operations and the foreclosed properties continue to pay part of their obligation to maintain the common elements of the association. Read more ...
North Carolina Legislature Focuses on HOAs & Condos (3/2010)
The North Carolina legislature has established the House Select Committee on Homeowners Associations, a standing legislative committee focused exclusively on community association issues, which has held public hearings across the state. CAI’s North Carolina Legislative Action Committee (NC-LAC) worked to make sure that the committee heard the full story about the benefits of community association living. Read more ...
FHA Condo Guidelines: Why Should You Care? (3/2010)
CAI’s CEO Thomas M. Skiba, CAE, provided an overview of the changing world of mortgage finance to attendees at the CAI Michigan Chapter Annual Trade Show on March 12, 2010. In his keynote address, he walked attendees through the recent changes to the FHA Condominium Insurance Guidelines, why CAI members should care about these changes and what it means for community associations across the country. Read more ...
Maryland LAC Spikes So-Called Freedom of Speech Bill (3/2010)
Maryland LAC members pull out all the stops to block passage of Senate Bill 212 (SB212), a bill that would have gutted association rule enforcement and required associations to allow non-residents access to private association property for “Non-Commercial” purposes. The bill died on the floor of the Senate by just four votes. Read more ...
Georgia LAC Launches Legislative Agenda (3/2010)
The members of CAI’s Georgia Legislative Action Committee (GA-LAC) began the 2010 legislative session by hosting a breakfast for lawmakers in the State Capitol in Atlanta on February 3. More than 30 state legislators and other attendees stopped by to grab a bite to eat while discussing GA-LAC’s agenda for Priority Lien legislation in Georgia while also preventing the ban of covenants regulating the display of flags on homeowner property. Read more ...
Maryland LAC Stands Up for Associations & Residents (3/2010)
The Maryland Legislative Action Committee has hit the ground running in the 2010 state legislative session. The LAC is supporting legislation to advance the interests of community associations and their residents and also taking a tough-line with legislators on particularly onerous or silly legislative proposals. Read more ...
UCIOA Bill Advances in Kentucky (2/2010)
The Kentucky LAC supported Common Interest Ownership Act (UCIOA) was passed out of the House Judiciary Committee on February 17, 2010. Read more ...
Utah LAC’s Legislative Kick Off: (1/2010)
The members of CAI’s Utah Legislative Action Committee (UT-LAC) kicked off the 2010 legislative session at the State Capitol on Friday, January 15. The more than 70 attendees were briefed on CAI’s priorities in the current session which include passage of the Uniform Common Interest Ownership Act (UCIOA) and amending or blocking legislation which would ban transfer fees charged by associations. Read more ...
CAI, NBC-CAM & CAI Alabama Submit Comments to Alabama Taskforce: (1/2010) Looking to update the state’s legal infrastructure for common-interest communities and to examine issues of potential regulation related to professional community association management, the Alabama Real Estate Commission appointed a Community Association Taskforce in late 2009. Inspired in part by the passage of manager licensing legislation in Illinois, the taskforce is examining issues related to consumer protection in communities such as resale disclosures and potential regulation of community association managers in the state. Read more …
Alabama Appoints Taskforce on Community Association Issues: (1/2010)
Inspired in part by the passage of legislation in Illinois to regulate community association managers, the Alabama Real Estate Commission has appointed a taskforce to examine two critical issues related to community associations: professional manager licensing and legal protections for homeowners. Read more …
50 State Session Summary and Legislative forecast (1/2010)
The 2010 legislative calendar kicks off another exciting year in politics and policy. For CAI and our state Legislative Action Committees (LAC), it means continued involvement in the legislative arena to ensure that the voices of our community association boards, managers and businesses are heard. Currently, there are 31 states in session, joined by the District of Columbia, Puerto Rico and the U.S. Congress. Additionally, California, Tennessee and Wisconsin are currently in the midst of a special session. Before the conclusion of January 2010, an additional four state legislatures will be convening sessions. Read more …