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 CAI Heads Up Archive 

2013
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2013

 Illinois CAM Board Meets July 16 (7/2013)
The Illinois Community Association Manager Licensing and Disciplinary Board (board) met for a regularly scheduled meeting July 16, 2013. The meeting was held at the Department of Financial and Professional Regulation's Chicago office. The following were items of interest on the agenda: Community Association Manager License Report and Renewal Numbers, Prosecutions Report, Community Association Manager Licensing and Disciplinary Act (act) and Rules, and Continuing Education. Read more...

 Virginia CIC Board Meets June 27 (6/2013)
The Virginia Common Interest Community Board met Thursday, June 27, 2013, for a regularly scheduled meeting. Among other business the Board discussed an update on the regulatory review process, the applicability of statute regarding bonds to insure the completion of improvements on commercial condominiums, and preparation for the 2014 legislative session. Read more...

Senators Introduce Bipartisan Legislation to Replace Fannie Mae, Freddie Mac (6/2013)
Led by Senators Bob Corker (R-TN) and Mark Warner (D-VA), a bipartisan group of eight U.S. Senators has introduced legislation that if signed into law will make dramatic changes to the nation’s housing finance system. The “Housing Finance Reform and Taxpayer Protection Act of 2013” proposes to wind down the business operations of housing finance giants Fannie Mae and Freddie Mac and establish a new federal agency to facilitate the flow of mortgage credit to American households. Read more...

CAI Submits Comments to House Financial Services Committee on Dodd-Frank Act (6/2013)
On June 18, 2013, Community Associations Institute (CAI) submitted a report to the U.S. House Financial Services Committee Subcommittee on Financial Institutions & Consumer Credit called, “Examining How the Dodd-Frank Act Hampers Home Ownership.” Read more…

House of Representatives Clears Reforms to FHA Reverse Mortgage Program (6/2013)
The U.S. House of Representatives has unanimously cleared legislation permitting the Federal Housing Administration (FHA) to make changes to the popular Home Equity Conversion Mortgage (HECM) program. More commonly known as reverse mortgages, HECM loans allow senior citizens to access equity in their homes. Read more...

Consumer Financial Protection Bureau Faces Bipartisan Criticism over Mortgage Rule (6/2013)
On Tuesday, May 21st, members of a key U.S. House of Representatives subcommittee took the Consumer Financial Protection Bureau (CFPB) to task over the Bureau’s new mortgage lending standards. In what may be the fledgling CFPB’s first taste of bipartisan criticism, lawmakers from both political parties expressed concern over several aspects of the Bureau’s signature mortgage lending regulation, the qualified mortgage (QM) rule. Read more...

U.S. House of Representatives Votes to Delay Flood Insurance Rate Increases (6/2013)
The U.S. House of Representatives voted 281 to 146 to halt significant premium increases for federally-backed flood insurance policies during debate on legislation to fund the U.S. Department of Homeland Security (DHS). A broad, bipartisan coalition joined together to pass a one-year prohibition on implementing a key section of the Biggert-Waters Flood Insurance Reform Act (Biggert-Waters Act) requiring actuarially sound premiums for government backed flood insurance policies. Read more...

New Mexico HOA Act Goes Into Effect July 1 (6/2013)
This year New Mexico Senate Majority Whip Tim Keller and Senators Steward, Baldanado, and McMillan introduced the Homeowners Association (HOA) Act. The act is a product of four years of stakeholder input, and is the first HOA bill signed into law in New Mexico. The final act provides a framework for future amendments, but offers important protections to homeowners and associations. The act applies to all homeowners associations, but does not apply to condominiums governed by the Condominium Act. Read more...

CAI Advocates Fair Taxation for Community Associations at NCSL Meeting (6/2013)
On May 31, CAI staff presented an educational session to the National Conference of State Legislature’s (NCSL) Executive Committee Task Force on State and Local Taxation. The session explored the role of community associations within a public tax structure and explained why local jurisdictions are seeking relief through this model of privately funded community living. It was a great opportunity for CAI to advocate outside of state capitals for the fair taxation and levying of fees on community associations. The NCSL Task Force on State and Local Taxation is comprised of 37 state Representatives and Senators from 24 states. For more information on the presentation contact Matthew Green at mgreen@caionline.org
 

FHA Rules Common Condo Leasing Restriction Violates National Housing Act (6/2013)
CAI has learned the Federal Housing Administration (FHA) has determined a common restriction on transient leasing in condominium association CC&Rs violates a key section of the National Housing Act. To be eligible for FHA approval and recertification, FHA is advising condominium associations to amend CC&Rs to comply with the Agency’s minimum statutory requirements. Read more...

Colorado Governor Signs Two HOA Reform Bills (5/2013)
Governor John Hickenlooper signed two of the four bills in the HOA Reform Package Tuesday, May 28. The bills are aimed at providing consumer protections for owners and residents in HOAs. House bills 1276 (HB 1276) and 1277 (HB 1277), which address HOA debt collection and the licensing of managers and management companies, were signed into law today. Read more...

Pennsylvania’s Legislative Day at the Capitol a Major Success (5/2013)
On Tuesday, May 14, members and staff of CAI’s Pennsylvania and Delaware Valley Chapter and CAI’s Pennsylvania LAC met with over 35 state legislators in the house and senate in Harrisburg, PA as part of a legislative day at the capitol. During the meetings CAI dropped off informational materials containing copies of a CAI-developed white paper addressing existing and desired legislation in the state. The talking points included summary positions of legislation in Pennsylvania affecting the common interest community industry throughout the state. Areas of interest included the Joint State Government Commission Report, tax equalization, association records and open meetings in condos and planned communities. Read more...

CAI Colorado LAC 2013 Legislative Session Report (5/2013)
The Colorado General Assembly adjourned its legislative session May 8. It was a demanding session for the Colorado Legislative Action Committee as they focused their efforts on a group of bills known as the HOA Reform Package. Read the full update and outcome of the session and summary of the bills here.

FHFA Limiting Fannie Mae and Freddie Mac Loan Purchases (5/2013)
T
oday, Fannie Mae and Freddie Mac announced the companies will only purchase mortgages complying with the new Qualified Mortgage standard. This policy announcement means that beginning in 2014 Qualified Mortgages will be the only option for most Americans who want to purchase or refinance a home. Read more…

FHA Hosts Condominium Approval Process Webinar (4/2013)
On Wednesday, April 24, the Federal Housing Administration (FHA) hosted a 90 minute webinar to address concerns and questions related to the FHA Condominium Approval Process. Regulators presented a Power Point to all attendees and answered questions at the conclusion of the presentation. The webinar was open to the general public. A copy of the presentation given by FHA was made available to CAI and can be viewed here.

Webinar on FHA Condominium Approval Process (4/2013)
On Wednesday, April 24, the Federal Housing Administration (FHA) is hosting a 90 minute webinar to address concerns and questions related to the FHA Condominium Approval Process. Members who are interested in learning more about FHA’s new mortgage qualification process are invited to participate in this event. Read more...

CAI CEO Attends Rep. Hensarling Fundraiser (3/2013)
On March 13, Tom Skiba, CAI’s Chief Executive Officer, attended a fundraiser hosted by U.S. House Financial Services Committee Chairman Jeb Hensarling. During the private event, Skiba discussed housing finance reform, the stability of the Federal Housing Administration, the housing market recovery and community associations. Read more...

CAI Joins Coalition for Sensible Housing in Calling for QRM Rule to Sync with QM (3/2013) On March 11, during a Capitol Hill panel discussion hosted by the Coalition for Sensible Housing Policy, housing experts highlighted the need to synch the forthcoming Qualified Residential Mortgage (QRM) rule with the recently released Qualified Mortgage (QM) rule and warned of the unintended consequences of a narrow QRM definition. The panel agreed that harmonizing QRM and QM will ensure that safe and sound lending protections are put in place, but without locking lower-wealth families out of homeownership or unduly restricting the housing market from efficiently accessing private capital. Read more...

CAI Joins Coalition Cautioning Federal Regulators on QRM Re-Write (3/2013)
On March 4, CAI joined partners of the Coalition for Sensible Housing Policy in sending a letter to federal regulators and senior staff in the U.S. Department of Treasury and the Executive Office of the President. The letter urges regulators writing the new Qualified Residential Mortgage (QRM) rule to stay as close to the Bureau of Consumer Financial Protection’s (CFPB) Qualified Mortgage (QM) standard as possible. The letter also cautions against very high down payment requirements for potential homeowners. The CFPB earlier issued the final rule defining “ability to repay” and the QM standard under the Dodd-Frank Act on January 10. In addition to defining safe mortgage products and mortgage underwriting standards, QM marks the maximum breadth of the QRM exception of the risk-retention rule, a rule currently under consideration by federal agencies. The coalition’s letter to federal regulators can be read here.

CAI’s Ohio LAC Holds Breakfast at Statehouse, Pushes Priority Lien Bill (2/2013)
On February 20, CAI’s Ohio Legislative Action Committee (LAC) hosted its first ever meet-and-greet breakfast with state legislators at the Statehouse in Columbus. The goal was to educate legislators and legislative staff on the importance of a limited lien priority for community associations in the state. Read more...

CAI Faces Expanding Federal Agenda in 2013 (2/2013)
With a new Congress sworn in and the pageantry of President Obama’s inauguration passed, CAI is moving aggressively in Washington, DC to make sure your voice is heard. The road ahead for CAI’s federal affairs agenda includes fairness in disaster recovery for community associations and preparing for the central role associations will play in new federal mortgage rules. Read more...

FEMA Relief for Community Associations (1/2013)
CAI’s recent member alert discussed the difficulties many CAI members impacted by Hurricane Sandy and other natural disasters are facing due to high recovery costs as community associations are being excluded from federal disaster relief. Meanwhile, local governments are being denied Federal Emergency Management Agency (FEMA) reimbursement for debris removal and other disaster recovery expenses in community associations.

As a direct result of our action alert initiative, we established a working relationship on this issue with New Jersey Senator Robert Menendez. CAI is hoping to continue our momentum and further our grassroots campaign to secure FEMA funds for community associations. Read more...

Qualified Mortgage (Ability to Repay) Guidelines Released (1/2013)
On January 10, the Consumer Financial Protection Bureau (CFPB) released its long-awaited federal Qualified Mortgage (QM) standard. The new federal guidelines, which are required by the Wall Street Reform and Consumer Protection Act (commonly known as the Dodd Frank Act), establish minimum requirements for all mortgage loans. Read more...



2012 

FEMA Denies Community Associations Disaster Assistance (12/2012) CAI members impacted by Hurricane Sandy are facing high recovery costs as local governments are being denied Federal Emergency Management Agency (FEMA) reimbursement for debris removal and other disaster recovery expenses in community associations. Read more...

CAI Signs Letter Opposing the Use of Guarantee Fees to Pay for STEM Jobs Act (12/2012)
CAI signed on to a coalition letter sent to congressional leaders urging them to oppose the use of guarantee fees generated by the Government-Sponsored Enterprises, Fannie Mae and Freddie Mac, to pay for the amendments to law proposed in H.R. 6429, the STEM Jobs Act of 2012. Diverting the income generated by these fees was a bad idea a year ago and it remains a bad idea today that should not be extended. The housing industry is aware that any increase in fees by Fannie Mae and Freddie Mac will likely be passed on to the consumer, increasing the cost of homeownership. Read more…
 

Audit Shows Federal Housing Administration May Need Taxpayer Funds (11/2012)
A congressionally mandated independent audit of the Federal Housing Administration (FHA) projects that FHA lacks sufficient funds to cover expected losses in its Mutual Mortgage Insurance Fund (MMIF). The audit estimates that FHA has a capital deficit of $13.5 billion for its forward mortgage programs and a $2.8 billion capital deficit for its reverse mortgage program. The MMIF supports the bulk of FHA program activities for single family mortgage loans, including condominium unit mortgages. Read more...

CAI Urges CFPB to Consider Community Associations in Proposed Rules (11/2012)
On November 6, CAI submitted comments to the Consumer Financial Protection Bureau (CFPB) on its proposed integration of consumer disclosures required by the Real Estate Settlement Procedures Act and the Truth in Lending Act and its proposed rule on High Cost Mortgages and homeownership counseling. CAI expressed concerns on the integration of consumer disclosures and provided recommendations in support of the community association model of housing to present the most efficient and cost effective method to proceed. CAI also expressed concern with CFPB’s proposal to amend the definition of finance charge and urged it to consider the potential impact of the proposed changes on consumers’ access to credit. Read our full comments on High Cost Mortgages and on the integration of consumer disclosures.

Slight Change to Recently Released FHA Condo Certification Has Major Impact (10/2012)
Appendix A, Project Certification, of the FHA condominium project certification approval guidelines, has been amended by FHA effective immediately. A provision (Item No. 2 of the certification) requiring the undersigned to acknowledge they have reviewed the project application and “upon the advice given by an attorney the application meets all state and local laws” has been removed from Appendix A. Read more...

CAI Submits Comments on CFPB Servicing Standards (10/2012)
On October 9, 2012, CAI submitted comments to the Bureau of Consumer Financial Protection regarding proposed mortgage servicing standards. Once a foreclosure is complete, CAI members report their communities continue to face substantial financial difficulty as servicers fail to fulfill the most basic obligations of property preservation. Servicers are required under Freddie Mac, Fannie Mae, and HUD guidelines to preserve properties, to communicate with a governing community association, and to ensure timely payment of applicable community assessments. Servicers disregard these requirements as a matter of routine. Read CAI’s letter here…
 

CAI Releases FHA Condominium Update FAQ (10/2012)
CAI has developed an FAQ summary in response to the Federal Housing Administration’s revision of its condominium project approval guidelines that were released on September 13th. The revisions to FHA condominium guidelines are contained in Mortgagee Letter 2012-18 and expire on August 31, 2014. The FAQ will serve as a resource to answer questions from within the community association industry. CAI’s FHA Condominium Update FAQs can be found here.

CAI Supports Legislation to Help Underwater Owners Refinance (9/2012)Federal legislation supported by CAI looks to be moving in the final days of the 112th Congress. On June 18th, CAI endorsed the “Helping Responsible Homeowners Refinance Act of 2012”. This legislation, championed by U.S. Senators Robert Menendez (D-NJ) and Barbara Boxer (D-CA), will help millions of homeowners reduce their monthly mortgage payments and rebuild equity in their homes. Stabilizing homeowner finances will lead to fewer assessment delinquencies and provide greater stability for community associations. Read more...

FHA Releases New Condominium Project Approval Guidelines (9/2012) The Federal Housing Administration released a long-awaited revision of its condominium project approval guidelines on September 13th. The revisions to FHA condominium guidelines are contained in Mortgagee Letter 2012-18 and expire on August 31, 2014. FHA states it is making temporary adjustments to its condominium standards in response to market conditions. Read more…

Fannie Mae and Freddie Mac Change Short Sale Requirements that Affect Community Associations (8/2012) Fannie Mae and Freddie Mac have announced changes to short sale policies to help more borrowers avoid foreclosure and stabilize neighborhoods. Mortgage servicing companies will begin using the new short sale procedures in early November.

A short sale allows a homeowner to sell their home for an amount less than the value of the existing mortgage. In an important change of policy, Fannie Mae and Freddie Mac will now allow mortgage servicers to qualify borrowers who are current on their mortgage for a short sale. Read more...

FHA Signals Release of New Condominium Guidelines (8/2012) FHA officials have confirmed to CAI their intention to release revisions to existing condominium approval guidelines prior to September 1. The new requirements are pending final approval by FHA Acting Commissioner Carol Galante. Unfortunately, it is not likely the revised guidelines will offer substantive or sweeping relief from current FHA condominium program requirements. Read more...

U.S. Government Announces Plans to Shrink Fannie Mae & Freddie Mac (8/2012) On August 17th, the U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) announced plans to expedite the wind down of Fannie Mae and Freddie Mac operations. Fannie Mae and Freddie Mac have been instrumental in the development of the community association model of housing. Read more…

FHFA Weighs in on Use of Eminent Domain for Mortgage Reductions (8/2012)
On August 8, the Federal Housing Finance Agency (FHFA) requested public comment on the use of eminent domain authority by municipalities to seize mortgage loans for purposes of offering homeowners a reduced mortgage balance. The County of San Bernardino, California and the City of Chicago, among other municipalities, have expressed interest in eminent domain as a means to reduce the number of residents whose mortgage obligations exceed the current market value of their home. Read more...

Freddie Mac Updates Condominium Requirements (7/2012)
Freddie Mac has revised the standards lenders must use when originating condominium unit mortgages eligible to be purchased by the housing finance giant. The new standards are effective December 1, 2012, but Freddie Mac will permit lenders to immediately implement the revisions

The revisions reorganize and clarify Freddie Mac’s Single-Family Seller/Servicer Guide Chapter 42, Special Requirements for Condominiums. Freddie Mac notes the reorganization is intended to make the condominium requirements easier to understand and implement. Read more...

NJ Manager Licensing Bill Passes Assembly (6/2012)
New Jersey Assembly bill 2658, which requires community association managers to meet professional and educational requirements to become licensed and creates a regulatory board to oversee the profession, had its first major victory Monday, June 25. The bill passed the Assembly with a 51-26-1 vote and now moves to the Senate. Compliments to the outstanding effort by the New Jersey Chapter for getting the measure introduced and working with legislators and industries to produce preferred language and support for the bill in the first chamber. The Chapter is now working to secure sponsorship in the second chamber and will be assisted by CAI National in a grassroots advocacy campaign targeting key members of the Senate to bolster support for the bill as it moves forward. Click here to view the text of the bill.

FHA Instructs Lenders to Comply with State and Local Anti-Blight Laws (6/2012)
On June 20, the Federal Housing Administration (FHA) reminded its lenders of their obligation to follow state and local laws while they hold title to a foreclosed property that was purchased with FHA-insured mortgage financing. Due to concerns over loss of tax revenue and other negative effects of neighborhood blight, numerous states and localities have adopted laws requiring that lenders and mortgage servicers protect and preserve abandoned homes. Read more...

RI LAC Secures Victory in Transfer Fee Legislation (6/2012)
Rhode Island Governor Lincoln Chafee (I) signed legislation in late June prohibiting transfer fees based solely upon the resale or subsequent transfer of real property. The state LAC promoted language exempting community associations from the prohibition. The language was incorporated into the final measure which became effective immediately. Rhode Island became the latest state to enact the ban on deed-based transfer fees leaving only 13 states to address the issue. Click here to view the legislation.

CAI Endorses Responsible Homeowner Refinancing Act of 2012 (6/2012)Community Associations Institute has endorsed S. 3085, the “Responsible Homeowner Refinancing Act of 2012.” The legislation, spearheaded in the U.S. Senate by Senators Robert Menendez (NJ) and Barbara Boxer (CA), will help more homeowners with mortgages greater than the value of their home refinance and lower monthly mortgage payments. Read more...

CAI Urges Fannie Mae, Freddie Mac Regulator to Recognize Community
Associations
(6/2012)
Noting changes in housing development and modern housing preferences, CAI urged the Federal Housing Finance Agency, or FHFA, to recognize community associations as a distinct housing market. Read more...

Compliance for ADA Pool Requirements Extended (5/2012)
In mid May the U.S. Justice Department announced an extension for public pools to comply with new requirements of the Americans With Disabilities Act (ADA). Now community and municipal pools and pool owners such as hotels, water parks and health clubs have until January 31, 2013, to comply with the ADA requirement and install fixed, permanent lifts that assist disabled people getting in and out of pools. In general, common interest communities and owners of private pools are exempt from the ADA requirement; however, associations that open their pools to the public, whether admittance is free or accompanied by a fee, may be required to comply. CAI recommends to an association that opens its pools to the public to consult its legal counsel for compliance requirements.

Flood Insurance Extension Passes U.S. Senate (5/2012)
On May 24th, the U.S. Senate passed legislation to extend the National Flood Insurance Program (NFIP) for an additional 60 days. The legislation, H.R. 5740, now returns to the U.S. House of Representatives for consideration. Unless an extension is signed into law by May 31st, the NFIP will no longer have the legal authority to issue new flood insurance policies or renewals. Read more...

U.S. Senators Tee Up Fannie Mae, Freddie Mac Mortgage Refinance Legislation (5/2012)
On May 24th, the U.S Senate Banking Committee held a legislative hearing on “The Responsible Homeowner Refinancing Act of 2012” (S. 3085), introduced by Senator Robert Menendez (D-NJ). If signed into law, S. 3085 will help borrowers whose mortgages are owned by Fannie Mae and Freddie Mac refinance. Read more...

CT Gov. Malloy Signs Manager Licensing Bill (5/2012)
Connecticut Governor Dan Malloy (D) signed HB 5536 into law May 23, which revises requirements concerning certification as a community association manager and continuing education for a licensed real estate broker. The bill requires all community association managers to successfully complete a nationally recognized course on community association management. The bill also requires community association managers to pass the National Board of Certification for Community Association Managers' Certified Manager of Community Associations (CMCA) examination or similar examination. Read more...

CLAC Outreach on FHA Guidelines Sees Early Success (5/2012)
The Colorado Legislative Action Committee (CLAC) received word in late April that its efforts to garner congressional pressure on the Federal Housing Administration’s (FHA) condominium certification guidelines gave way to preliminary success. CLAC’s outreach to Representative Ed Perlmutter (CO-7) allowed CAI to contribute comments on a letter sent to FHA Acting Commissioner Carol Galante expressing concern over the agency’s strict certification requirements. Read more...

CAI Leads Industry Letter to FHA on Transfer Fees (5/2012) On May 2nd, CAI urged the Federal Housing Administration (FHA) to avoid creating a second, conflicting national standard governing community association transfer fees.

In 2010, FHA established a policy that all transfer fees violate its program rules and guidelines. This decision, which was taken without any examination of long-standing legal principles or understanding of market impact, has not been uniformly enforced. Read more…

CAI Testifies Before Congress on Impact of Foreclosure Crisis on Associations (5/2012)
Mr. Dick Pruess, long-time CAI member and chair of California’s Legislative Action Committee, told federal lawmakers that association homeowners suffer when lenders delay foreclosures, allowing delinquent owners to remain in their properties.

The U.S. House of Representatives Financial Services Committee asked CAI to testify on a plan to sell real estate owned (REO) held by mortgage giants Fannie Mae and Freddie Mac to private investors. The federal agency that oversees Fannie Mae and Freddie Mac is testing a program that will sell large numbers of REO to investors who must agree to rent the properties for a minimum of three years. CAI was asked to share how bulk sales of Fannie Mae and Freddie Mac REO would impact community associations and homeowners. Read more...

Federal Communications Commission Studies HAM Radio Antenna Restrictions (4/2012)
The Federal Communications Commission (FCC) has announced a new study on CC&Rs that impede the installation of amateur radio (HAM) towers and antenna. To assist in the study, the FCC seeks public comment on questions about the role of HAM radio in disaster response and how antenna restrictions in CC&Rs may impede the federal response to national emergencies. The deadline for comments is May 17, 2012. Read more…

FHA Action on Condos, Transfer Fees in Pipeline (4/2012)
The Federal Housing Administration (FHA) is likely to take action in the coming months that will affect community associations. FHA is preparing new policies for condominium project approvals and will soon release guidelines on the use of transfer fees by community associations. Read more...

CAI Responds to NY Times Op-Ed (4/2012)
On Sunday, April 1, 2012, the New York Times ran an editorial by Richard Benjamin titled “The Gated Community Mentality.” Mr. Benjamin’s piece did not mince words, placing the blame on the tragic death of Treyvon Martin on America’s community associations and their residents. Smug, like-minded, overzealous, wooden dolls is how Mr. Benjamin describes the more than 60 million residents of HOAs, condominiums and cooperatives. CAI responded in a strongly worded retort.

Federal Reserve Issues Guidance to Banks on REO Rentals (4/2012)
On April 5, the Federal Reserve System issued guidance to banks intended to spur the temporary conversion of Real Estate Owned (REO) to rental property. Earlier this year, the Federal Reserve strongly encouraged the sale of REO to investors for use as rental properties. With this new guidance, the Federal Reserve is offering banks the option to keep ownership of REO properties while making the properties available for rent. The Federal Reserve’s REO rental guidance will impact CAI’s members in two general areas. Read more…

CAI Urges Community Association Perspective in Bulk Sales of HUD, Fannie Mae, and Freddie Mac Properties (4/2012)
Many believe the answer to the national foreclosure crisis lies in bulk sales of foreclosed properties to investors for use as rental properties. Outspoken supporters of this approach include Federal Reserve Chairman Ben Bernanke and Mark Zandi, Chief Economist and founder of Moody’s Analytics. These efforts have culminated in the launch of a pilot program for bulk sales of Fannie Mae and Freddie Mac owned properties to investor syndicates. Read more...

CAI Files Comments on FHA Seller Contributions Rule (4/2012)
CAI has submitted comments on a proposal by the Federal Housing Administration to limit seller contributions at FHA mortgage closings. In February, FHA proposed to limit the total dollar amount of seller contributions for FHA loans to a maximum of three percent of the loan amount. FHA also proposed to prohibit sellers from offering to pay any amount of association assessments for buyers. Read more…

CAI Secures Important Transfer Fee Victory (3/2012)
On March 15, 2012, the Federal Housing Finance Agency (FHFA) issued its long awaited final rule on transfer fees. FHFA had proposed a federal regulation which would have banned federally backed mortgages for any property in a community association with a deed-based transfer fee in place. As originally drafted, the proposed rule would have cut off nearly all mortgage funding for the 11 million housing units, or 49 percent of all community association housing, that have existing deed-based transfer fees. Read more…

White House Announces FHA Refinance Program Changes (3/2012)
President Obama has announced changes to the Federal Housing Administration’s streamline refinance program to help more borrowers take advantage of historically low mortgage interest rates. FHA’s streamline refinance program allows existing FHA borrowers to forgo strict loan underwriting requirements when refinancing to another FHA-insured mortgage. Read more…

CAI Prods Mortgage Loan Servicers on Assessment Delinquencies (2/2012)
On February 23rd, CAI wrote the U.S. Department of Justice, the U.S. Department of Housing and Urban Development, and the Iowa Attorney General, urging that mortgage servicers be required to pay association assessments on real estate owned (REO) and properties in foreclosure. On February 9th, the federal government and 49 states agreed to a nationwide settlement on foreclosure violations by mortgage servicing companies. Read more…

HUD Files Rule Banning Seller Payment of Assessments at Closing (2/2012)
The U.S. Department of Housing and Urban Development has acted to ban the practice of sellers agreeing to pay a set amount of association assessments for a buyer when closing on a FHA-insured mortgage. The ban is included in a proposed rule limiting concessions sellers may offer buyers to complete a sale. Read more...

President Announces Housing Initiatives (2/2012)
President Obama has unveiled a series of initiatives to help move the nation’s fragile housing markets to recovery. The president’s proposals fall in four basic categories: mass refinancing program; homeowner bill of rights; foreclosure mitigation; and REO to Rental Pilot Transaction.

The president will propose legislation to Congress allowing all borrowers whose mortgage exceeds the value of their home to refinance to a mortgage insured by the Federal Housing Administration (FHA). The administration believes that by refinancing to current mortgage rates, which are at historic lows, the average American homeowner can save up to $460 per month. Read more...

WA Manager Clarification Bills Pass Committees (1/2012)
In response to the Washington State Real Estate Commission indicating it would likely be regulating community association managers as realtors, the WA-LAC worked with key legislators in both chambers to have bills drafted clarifying that managing common interest communities is a distinct profession. The bills have passed their committees of referral and are making their way to the chamber floors. Additionally, the LAC worked to garner support for manager licensing and was successful in having a bill introduced requiring that managers be certified as a CMCA, AMS or PCAM, furthering the goal of professionalizing community management. Click here to view the clarification bill and here to view the manager licensing legislation.

President Discusses Housing Proposals in State of the Union (1/2012)
I
n his State of the Union address, President Obama announced two measures to address the ongoing housing and foreclosure crises. The programs will allow homeowners to refinance mortgages to take advantage of historically low interest rates and will crack down on mortgage fraud.

While the details and legislative language on the president’s refinance proposal have yet to be released, the Administration is planning to use the Federal Housing Administration as a vehicle to allow “responsible” homeowners to refinance existing mortgages. Interest rates for 30-year, fixed rate mortgages are currently below 4 percent. The Administration estimates borrowers could save up to $3,000 per year by refinancing existing mortgages to these lower rates. Read More...

Pennsylvania Joint State Government Commission Releases Report on Common Interest Communities (1/2012)
In December 2011, the Joint State Government Commission of Pennsylvania released a detailed study outlining the relationship between Common Interest Ownership Communities (CIOCs) and municipal governments in the Commonwealth. The commission report was ordered after the adoption of HR 350 in 2009, which directed the commission to study the relationship between state and local governments and homeowners associations. The report analyzed the impact of CIOCs in Pennsylvania by collecting information from communities and their residents to better determine how infrastructure development, the municipal tax burden on residents of CIOCs and potential access to state funding sources affects CIOCs as well as local government. Read more...

CAI Applauds Administration Guidance of GSE Foreclosures (1/2012) In a letter dated January 6, 2012, CAI has thanked the Office of the Comptroller of the Currency (OCC) for guidance to banks and federal savings associations on their responsibilities in foreclosure. That guidance, embodied in OCC Bulletin 2011-49, provides notice that lenders who foreclose are responsible for payment of community association assessments. CAI survey data indicates that more than three out of four bank-owned properties do not pay required assessments, putting strain on the rest of the homeowners in the community. You can read CAI's letter here.

CFPB Director Sets Agenda (1/2012)
I
n his first remarks as CFPB Director, Richard Cordray announced the Bureau will begin to immediately exercise its supervisory authority over non-bank entities offering certain consumer financial products or services. Specifically, the Bureau will target mortgage originators, brokers, and servicers as well as entities offering mortgage modification or foreclosure avoidance services. Read more...


2011

Congress to Increase Fees on Fannie Mae, Freddie Mac, and FHA (12/2011)
The Congress has opted to increase fees for Fannie Mae, Freddie Mac and FHA to pay for a reduction in the payroll tax. As part of an economic stimulation package, the Obama Administration ushered in a reduction in employee payroll taxes. The temporary reduction is set to expire on December 31st unless Congress votes to approve an extension. Read More...

Subcommittee on Capital Markets & GSEs Moves Housing Finance Bill (12/2011)
On December 14th, the House Financial Services Subcommittee on Capital Markets voted 18 – 15 to advance the Private Mortgage Markets Investment Act (PMMIA) of 2011. The proposal will next be considered by the House Financial Services Committee. Read More...

Congress Passes Short-term Flood Insurance Extension (12/2011) Congress has included an extension of the National Flood Insurance Program through May 31, 2012, in a fiscal year 2011 omnibus appropriations package, which awaits the president’s signature. To allow the president time to review the expansive appropriations package, which funds several Cabinet departments and agencies, Congress also passed a short-term funding bill that extends the flood insurance program through December 23rd. Read More...

Colorado LAC Moves on Manager Licensing (12/2011) CAI’s Colorado LAC’s efforts to move forward with manager licensing legislation in the state got a boost today with additional positive press coverage. Increases in favorable press coverage not only enhances the profile of the LAC’s mission but also helps readers better understand the significance of manager licensing. Read the story here.

City Council Adopts CAI-backed Condo Trash Bill (12/2011) A short time ago, Philadelphia's City Council, by a vote of 12 for and 5 against, adopted Bill Number 110130, which provides a credit against the tax for owners of condominiums and cooperatives and planned community unites who do not receive regular City refuse, recycling and bulk item collection services, under certain terms and conditions. Read More...

Colorado Lender Plays Fast with Priority Lien Requirements (12/2011)
CAI members in Colorado have reported that a mortgage company in the state is telling lenders that in order to obtain a mortgage for a home in a community association the association must waive its priority assessment lien rights under Colorado Law. In justification for this requirement the mortgage company cites “VA, FHA and [Company name’s] internal company requirements.” CAI’s Government and Public Affairs Staff have reviewed the Federal Housing Administration (FHA) and U.S. Department of Veteran Affairs’ (VA) requirements, discussed this matter with officials at FHA and examined FHA’s ongoing and active lending in the 19 states with priority assessment lien laws. We have concluded that there is no federal regulatory or statutory requirement that would require an association to waive its priority assessment lien rights under Colorado Law to obtain a FHA or VA backed mortgage. We are working with the CAI’s Colorado Legislative Action Committee to bring this issue to the attention of legislators. Read more...

FHA Responds to CAI on Transfer Fees (11/2011)
In October, CAI called on the Federal Housing Administration (FHA) to take action and address the issue of deed-based transfer fees in community associations. Early this year FHA issued an “interpretation” of its regulations which concluded that it cannot underwrite mortgages in community associations with deed-based transfer fees, which exist in close to half of all community associations. CAI called on FHA to address the issue through a waiver or other regulatory means. You can read the October letter here.

On November 23, 2011, FHA responded. In a short letter FHA indicated it recognizes such fees have value to homeowners and community associations and it was working to take action in the coming months to address the issue. CAI will continue to pressure FHA to take quick action on this matter. You can read the response from FHA here.

CAI Delegation Meets with FHA Head (11/2011)
On November 17, 2011, CAI led a delegation to meet with Carol Galante, the Acting Commissioner of the Federal Housing Administration (FHA). The delegation included representatives from the National Association of Realtors and the National Association of Home Builders. The purpose of the meeting was to discuss ongoing concerns with the FHA condominium guidelines. The meeting was a follow up to CAI’s July 25 and October 12 letters expressing concerns on new criteria found in FHA’s Mortgagee Letter 2011-22. Read more...

Illinois Community Association Manager Licensure Application Available (11/2011)
Individuals practicing community association management must obtain a professional license to work in the state by September 30, 2012. Click here to view the application and the specific requirements of the methods to obtaining the license – Grandfather, Examination, Endorsement and Restoration. Applicants must be 21 years of age, meet the requirements of the method of application and submit the $300 application fee. Licenses are good for two years. The state has yet to set renewal fees and continuing education requirements.

CAI White Paper on ADR Presented to Canadian Condo Institute & Members of Parliament (11/2011)
CAI’s G&PA Department prepared a white paper on requirements for alternative dispute resolution (ADR) in community associations in the United States for our friends in the Canadian Condo Institute. The paper provides an overview on dispute resolution requirements imposed by state legislatures in key states across the USA. As part of their effort examining mechanisms to address homeowner disputes with community association boards, the Canadian Condo Institute presented the paper to key members of Ontario’s Parliament. You can review the white paper here.

Leading Senator Chides FHA on Condos (11/2011)
Massachusetts Senator Scott Brown has sent a strongly worded letter to the Secretary of Housing and Urban Development expressing concerns over the development and implementation of FHA’s condominium guidelines. The letter specifically addressed the concern over the recent actions by FHA to deny mortgage funding to associations with special assessments or loans for property improvements. Read More...

Key Congressmen Express Concern with FHA Criteria, Process (11/2011)
Condominium owners struggling to meet stringent and conflicting Federal Housing Administration (FHA) underwriting requirements got a helping hand in their efforts from key members of Congress. Members of the Massachusetts Congressional Delegation, led by Congressmen Barney Frank, Michael Capuano and Stephen Lynch, sent a letter expressing their concerns with the current FHA condominium underwriting criteria and the lack of stakeholder input in the development of the guidelines. Read More…

Philadelphia City Council Moves on Condo Trash Bill(10/2011)
The Finance Committee of Philadelphia’s City Council held a hearing on Tuesday, October 18, 2011 at City Hall on Bill 110130 which would provide a credit against the tax for owners of condominiums, cooperatives and planned community units who do not receive regular City refuse, recycling and bulk item collection services. After lengthy testimony and questioning on the Bill from many proponents, and the Nutter Administration, the Finance Committee unanimously reported the Bill out of committee and to the full City Council, where it now awaits action. Read the testimony here.

CAI Cautions FHA on Transfer Fees, Calls for Waiver (10/2011)
As part of a series of training sessions on the revised, Federal Housing Administration’s (FHA) condominium mortgage guidelines, FHA informally announced that it would be issuing new regulatory guidance to address the issue of deed-based transfer fees. FHA indicated that it would likely disqualify any condominium association with deed-based transfer fees from access to FHA-insured mortgages. This news comes as condominium associations across America are still reeling from the July 2011 FHA Guidance which imposed new and confusing underwriting guidelines that conflict with condominium business practices, state law and common sense. In response to this sudden announcement by FHA, CAI has dispatched a letter warning FHA of the dire consequences to the condominium market if it follows through on its announcement. Read more...

CAI Advocates for Manager Licensing in Maryland (10/2011)
During the Maryland General Assembly’s 2011 session, CAI and the MD-LAC supported three manager licensing bills and worked with sponsors to create a model bill to serve as the vehicle. Those bills failed to receive a vote in committee and were referred to interim study, but as a result the House of Delegate’s Housing and Real Property Subcommittee hosted a study session October 12, 2011, to receive public and industry testimony on the issue. CAI and the MD-LAC testified together at the hearing and provided astute answers to the Subcommittee’s questions in addition to offering a hard copy of our statement and a white paper providing an overview of the benefits of regulating the profession and options to achieve sound regulating policy. CAI and the MD-LAC will soon meet with the Senator who championed the issue in the Senate last session to discuss revisions so an approved, model bill will be introduced in 2012.

FHA Backs Away From Management Company Insurance Mandate (9/2011)
Thanks to pressure from CAI members across the country, the Federal Housing Administration (FHA) indicated that it will revise a controversial regulatory mandate that would require management companies to carry a fidelity bond if they managed a condominium association. In June, FHA released new guidelines for its condominium mortgage insurance program. The guidelines set standards that condominium associations must meet in order for any potential buyer to qualify for a FHA-backed mortgage. As FHA accounts for nearly one in three condominium mortgages, the guidelines have a significant impact on the marketability of condominiums. Read More...

CAI Engages House Committee on FHA Condo Program (9/2011)
The House Financial Services Committee’s Subcommittee on Insurance, Housing and Community Opportunity hosted a hearing on September 8 examining the role of FHA in the mortgage markets. Acting FHA Commissioner Carol Galante testified to FHA’s role in the post crash housing market and noted progress made by FHA in ‘improving’ the condominium insurance process. Her testimony stands in sharp contrast to the statement submitted to the subcommittee by CAI. Read more…

CAI Mortgage Teams Deliver a Message to Congress (8/2011)
In July, CAI set a goal of working with state LACs to target 40 members of the House Financial Services Committee and the Senate Banking Committee. LAC appointed “Mortgage Matters Teams” were empowered to set up visits with targeted members to discuss three key issues, FHA condominium underwriting standards, Qualified Mortgage Rules and Qualified Residential Mortgage Rules. All of these federal proposals have the potential to have a substantial negative impact on access to affordable and fair mortgages for residents in Community Associations. So far state LACs have met with close to half of the targeted members during the month of August! Read more...

CAI – OC Meets with Local Congressman to Discuss Mortgage Situation Impact on Community Associations (8/2012)
Earlier this week, several members of the CAI-OC Chapter met with the local representative, US Congressman John Campbell. They spoke with the Congressman about the unique impact on community associations of the mortgage situation. Earlier this week, several members of the CAI-OC Chapter met with the local representative, US Congressman John Campbell. They spoke with the Congressman about the unique impact on community associations of the mortgage situation. Read More...

CAI Files Comments on Qualified Mortgages (7/2011)
CAI has filed extensive comments on proposed federal regulations defining Qualified Mortgages. These regulations are the result of the Wall Street Reform and Consumer Protection Act of 2011. The law made important changes to the types of mortgages lenders will be able to offer consumers. These loans are called Qualified Mortgages or QM. QM regulations focus on a borrower’s ability to repay a mortgage. The draft regulations will include mandatory payments associated with a mortgage in qualifying applicants. This will include association assessments. The government also sought comment on the impact of special assessments and transfer fees on borrowers. CAI provided detailed comments to help ensure that any final regulations do not have a negative impact on community associations. You can read the comment letter here.

CAI Files Administrative Challenge to FHA Guidance (7/2011)
On Friday, July 22, 2011, CAI filed a challenge to provisions of the FHA Mortgage Insurance Guidance with the Office of Information and Regulatory Affairs. CAI’s letter asserts that FHA failed to perform neither the necessary due diligence nor appropriate research prior to issuing Mortgagee Letter 2011-22. Under federal policy embodied in Executive Order 12866, federal agencies are required to meet procedural and substantive requirements prior to issuing regulations. CAI challenged the FHA guidance in four areas: the fidelity insurance mandate for management companies, the 30 day delinquency standard, project certification requirements and provisions related to deed restrictions. Read More...

CAI Comments on IL Manager Licensing Regulations (6/2011)
On June 15, 2011, CAI submitted comments to the Illinois Department of Financial and Professional Regulation concerning proposed regulations to implement the state’s community manager licensing act. The draft regulations provided additional details on defining who would be covered by the Act, what types of credentials and education will be required of licensees and what fees would apply to the program. Read More...

CAI Surveys Members on Proposed Mortgage Rules (5/2011)
CAI has engaged its members for input into shaping the future of mortgages. In response to draft Qualified Residential Mortgage regulations issued by the federal government, CAI has asked its members to weigh in with their thoughts on the proposed new lending standards. The new regulations will reset the rules for mortgages for nearly all homebuyers. In addition to the survey, CAI has put together a short Frequently Asked Questions document to give members background on the standards set by the proposed regulations. CAI will use the data from this survey to help us in our comments to the government on their draft regulation. Read More…

Governor Signs Maryland Priority Lien Bill (5/2011)
On May 10, 2011, Maryland Governor Martin O’Malley signed HB 1246, The Maryland Priority Lien Bill, into Maryland state law. The bill was originally passed by the Maryland Senate on April 11, 2011, after previously being passed through the House of Delegates. The bill establishes a 4-month priority ahead of lenders of up to $1,200 for condominium and homeowner association assessments when there is a lender foreclosure. It applies to new loans obtained after October 1, 2011. Read More...

CAI-New Hampshire Chapter Donates CAI Publications, Meets with New Hampshire House Speaker (5/2011)
On April 27, 2011, CAI’s New Hampshire Chapter hosted a legislative breakfast for New Hampshire legislators at the state capitol in Concord. The meet-and-greet served as a means to educate representatives and senators on the activities of CAI-New Hampshire and CAI’s national role across the country. New Hampshire legislators had the opportunity to discuss CAI with both state and national staff. Each legislator was also provided with hand-outs and informational materials covering the many different aspects of CAI’s mission. Read More...

Arizona Legislature Adjourned (4/2011)
The Arizona Legislature adjourned on April 20. Governor Brewer has signed six HOA-related bills and one is on her desk. All bills will become effective on July 20, 2011. The bills that will impact associations are: HB2245 will permit owners to audio or video record annual membership meetings, special membership meetings, and board of directors meetings that are open to the membership. The board of directors can adopt REASONABLE rules and regulations regarding the recording, but cannot preclude the recording. Read More...

CAI Comments on Revised FHFA Transfer Fee Regulation (3/2011)
CAI has submitted a second set of comments in response to the revised draft regulatory guidance issued by the Federal Housing Finance Agency on private, deed-based transfer fees. FHFA issued a revised draft regulation on private, deed-based transfer fees in late January 2011. The revisions reflect input from more than 2,600 interested parties. As originally drafted, the FHFA private, deed-based transfer fee regulation would have prohibited federally backed mortgages for any property in a community with a private, deed-based transfer fee. Read More...

CAI Members Defeat Manager/Condo Deregulation in Florida (3/2011)
CAI’s work at both the national and local level in Florida preserved community associations and the community management profession throughout the state. By pooling their resources together, CAI’s Florida Chapters and LAC were able to work with CAI members and lobbyists to prevent the deregulation of community association managers and condominium trust. Read More...

FHA Issues Waiver on Leasing Restrictions (3/2011)
Leasing restrictions have been one area of the FHA condominium guidelines that has caused problems for associations seeking to get FHA approvals. CAI has brought this issue to FHA’s attention and has petitioned FHA to review these criteria. On March 18, 2011, FHA issued a waiver that will provide greater flexibility on leasing restrictions under the FHA condominium insurance program. This means that many condominium associations whose FHA approval was rejected due to rental restrictions may now qualify under the FHA waiver. Read More...

CCAL and CAI Attorney Member Surveys Guide CCCAL Board (3/2011)
The College of Community Association Lawyers (CCAL) Board of Governors met on March 10 and 11 to map out the future of the College. Founded in 1993 to recognize excellence in the practice of community association law, the College has had a growing role in shaping the law and the business environment for community associations. The College’s premier event is its sponsorship of the Annual Law Seminar which has seen attendance growth over 50% in the past five years. Read More...

CAI Fights Community Manager Deregulation in Florida (3/2011)
Florida Governor Rick Scott has prioritized the deregulation of various professions in Florida. As a result, The Florida House of Representatives Business and Consumer Affairs Committee has introduced legislation to deregulate community association managers. Read More...

CAI Calls on FHA for Stakeholder Input, Transparency in Condo Guidelines (3/2011)
CAI has reached out to the leadership of FHA to express concern over continued problems and mismanagement of the condominium insurance program. The program requires condo associations to get FHA approval for the entire association in order for any buyer to qualify for FHA financing to purchase a condominium unit. As FHA’s share of condominium mortgages has exploded during the housing crisis from less than 5% to 30% of all mortgages, sound underwriting guidelines and administration are critical to ensure appropriate qualification criteria are adopted. To date, FHA has continued to issue guidance with no public notice or stakeholder input. The result is an increasingly troubled program that is needlessly disqualifying healthy condominium associations and burdening homeowners with added compliance costs. Read More...

CAI’s NC-LAC and Chapter Team up for Law Day (3/2011)
CAI’s North Carolina Chapter and Legislative Action Committee (NC-LAC) teamed up to host their second Law Day for Community Associations on Saturday, February 26, 2010 in Durham, North Carolina. With more than 300 attendees, the even was an unqualified success. Read More...

Georgia LAC Raids Capitol, Pushes Priority Lien Bill (3/2011)
On February 22, 2010, CAI’s Georgia Legislative Action Committee (GA-LAC) hosted its second meet and greet with state legislators in the Capitol building in Atlanta. The goal was to educate representatives and senators on the importance of priority lien legislation supported by the LAC.Read More...

CAI issues an IAF Grant to Support Texas Legislative Battles (2/2011)
With Texas community association residents and managers facing more than 40 bills specifically targeting community associations, CAI’s Government and Public Affairs Committee has issued a $15,000 grant from the Issues Advancement Fund (IAF). The grant is to match funds raised by CAI chapters to support legislative efforts on behalf of CAI by the Texas Community Association Advocates (TCAA), which functions as CAI’s Legislative Action Committee in the state. Read More...

CAI Member Efforts on FHFA Regulation Featured in National Press (2/2011)
Ken Harney of the Washington Post Writers Group has recognized the work of CAI members and their grassroots effort to block the FHFA proposed regulation on deed-based transfer fees. In his article, which ran in the Sunday, February 13, 2011 Washington Post, and was picked up by papers across the country, he credits CAI members strong response for forcing the agency to rethink its efforts. Calling CAI members action “was swift and intense” and forced the FHFA into a posture of “Oops, sorry.” Read More...

FHFA UPDATE: FHFA ISSUES MAJOR REVISIONS TO DEED-BASED TRANSFER FEE PROPOSAL (2/2011)
Federal Housing Finance Agency (FHFA) has issued a revised draft of their proposed regulation on private transfer fees and their revisions reflect the comments expressed by CAI and its members. CAI expressed strong concerns over FHFA’s assertion that such fees do not benefit community associations. The new draft proposal will be open for public comment and CAI will follow up with a full analysis and sample comments in the coming days. Read More...

Utah LAC’s Capitol Kick-Off (1/2011)
On Friday, January 21, 2011, the members of CAI’s Utah LAC and over 80 of their CAI colleagues kicked-off the legislative session with a luncheon at the Utah State Capitol. To memorialize the event the Governor declared January 21 as Community Association Day. Read More...

CAI Joins Stakeholder Groups with Concerns on Qualified Residential Mortgage Regulations (1/2011)
CAI has signed on to a letter urging the federal government to take a studied approach to overhauling the mortgage finance system. Under provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 7 federal agencies were empowered to draft regulations defining Qualified Residential Mortgages (QRM). The goal of developing QRM is to provide strong underwriting requirements and incentives for responsible lending and borrowing. If a mortgage does not meet the requirements established under the QRM regulations, a lender will have to retain partial ownership of the loan. This would be a strong disincentive to lending. For community associations the outcome of the QRM regulatory process could very well determine the future mortgage-ability of units in associations. Read More...

CAI Members Meet with FHA to Discuss Condominiums (1/2011)
On January 7th, a delegation of CAI members met with policymakers at the Federal Housing Administration (FHA), presenting the agency with practical difficulties condominium associations face when qualifying for FHA’s condominium mortgage insurance program. CAI’s member delegation focused on three problem areas that are preventing homeowners in many condominium associations from using FHA programs. Read More...

CAI Takes Action on Mortgage Regulations (1/2011)
In 2011, a host of federal agencies will be issuing regulations that will create Qualified Residential Mortgages (QRM). These regulations are required under provisions of the Financial Services Reform Act passed in 2010. Under a provision titled “Risk Retention,” lenders will be required to retain an ownership interest in each mortgage they lend unless the mortgage meets the requirements of a QRM. The effect of this new law will be to reset the rules governing mortgages including mortgage qualifications and lending criteria for properties in community associations. Read More...


2010 

 FHA Announces Delay in Condominium Project Approval Expiration Deadlines  (12/2010) 
FHA has announced a revised schedule for condominium project approval expirations and urged all condominium communities wishing to retain FHA approval to complete the recertification process. CAI strongly encourages all condominium communities with FHA approval to be mindful of the new expiration deadlines and to begin the recertification process in a timely fashion to avoid disruption in the sale of units. Read more...

 FHA Condominium Project Approval Recertification (Update) (11/2010)
Continuing its implementation of the new condominium project approval process, the Federal Housing Administration (FHA) has released guidance for condominiums seeking project recertification. To review FHA documentation on project recertification and to verify required information for recertification, please click here. To view general information on FHA’s condominium program, click here. To view CAI’s FAQ on the recertification process, Read more... 

 FHFA Comment Period Closes - What Happens Next? (10/2010)
On Friday, October 15, 2010, the comment period for the proposed Federal Housing Finance Agency (FHFA) regulation on private transfer fees closed. Prior to the comments closing, more than 2,600 organizations and individuals submitted comments to the FHFA. CAI submitted comments opposing the regulation and included a copy of our member-developed deed-based transfer fee survey. CAI G&PA staff worked with other stakeholder organizations and shared our survey data on the impact of the proposed FHFA regulation. CAI’s survey was cited in the comments of several other organizations including the National Association of Homebuilders (NAHB), The Coalition to Save Community Benefits and The Leading Builders of America. CAI members from across the country also submitted comments in opposition to the proposed FHFA regulation. Read more...

 Pennsylvania Representative Stands with Community Associations in Opposition to the FHFA Transfer Fee Regulation (10/2010)
As CAI members know, the proposed regulation on banning federally backed mortgages for any property in a community with a deed based transfer fee would have a devastating effect on community associations. Forty-nine percent of community associations utilize deed-based transfer fees to fund reserves, capital projects or to supplement operating expenses. If enacted, the FHFA regulation would ban any federally backed mortgage for property in a community association with such a fee, rendering properties unmarketable. Read more...

 CAI Comments on FHFA Proposed Transfer Fee Regulation (10/2010)         CAI has submitted comments to the Federal Housing Finance Agency (FHFA) in response to their proposed regulation on so-called “Private Transfer Fees.” CAI’s comments call on the FHFA to rescind the proposal, allow time for state and federal legislators to address the issue and to consider the reality of how such fees are used by community associations in any future regulatory proposal. CAI noted that the application of such a regulation to community associations, which would impact the ability of property in community associations to qualify for most mortgages, would be catastrophic. Read more...

 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. Read more...

 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 … 
 


2009

 CAI Expresses Continued Concern on FHA Rules (12/2009)
On November 6, the Federal Housing Administration issued revised guidelines outlining requirements for condominium associations to qualify for FHA mortgage insurance. With mortgage underwriting giants Fannie Mae and Freddie Mac still struggling in receivership, FHA mortgage insurance is playing an increasingly important role in providing financing options to condominium buyers. Because of this increasingly important role, CAI has been actively engaged with the FHA in response to their evolving guidelines for condominiums to ensure that the final requirements are realistic, achievable and are informed by real-world association experience. Read more ... 

 FHA Condominium Guidelines - FAQ  For Associations (11/2009)
The FHA has released its latest regulations dealing with FHA insured condominium mortgages. Although these regulations deal primarily with requirements FHA is seeking from lenders, they do affect your association. CAI has prepared this FAQ to help you understand what it means for your condominium association. Read more ... 

 FHA Issues Revised Guidance in Condo Loan Approvals (11/2009)
On Friday, November 6, 2009, the Federal Housing Administration (FHA) issued two documents related to FHA mortgage insurance requirements for condominium associations.  These two documents: HUD Mortgagee Letter 2009-46A and Mortgagee Letter 2009-46B provide an overview of the FHA-proposed transitional criteria and successor criteria for condominium association requirements for FHA mortgage insurance.

These letters replace earlier proposals issued by FHA that triggered a strong response from affected industries.  CAI provided FHA with its feedback on the earlier drafts of the criteria.  The new transitional criteria and the successor criteria found in these documents demonstrate a positive movement by FHA in areas in which CAI provided comments, but will continue to pose a challenge for condominium associations. Read more ...

 White House Extends and Expands Home Buyer Credit (11/2009)
President Obama has signed legislation that will both extend and expand the home buyer credit through April 30, 2010.  As before, first time home buyers will be entitled to an $8,000 tax credit provided they enter a sales contract by the deadline and finish closing proceedings no later then June 30, 2010.  Also, a smaller credit worth $6,500 is now available to families that have lived in their current home for a minimum of five years and wish to upgrade to a larger property.  The law further extends a similar tax benefit to military personnel until May 2011.  Additionally, financial eligibility restrictions have also been relaxed, raising the ceiling to qualify for the full credit to $125,000 for individual buyers and $225,000 for married couples. Read more …


 FTC Delays Red Flag Rules (11/2009)
The FTC has announced a delay in implementing new regulations, which would require organizations to implement, so called “Red-Flag” rules. The new regulations will be implemented on June 1, 2010. CAI will continue to monitor and communicate our concerns to the FTC on this issue.

Under the initial proposal, a covered organization to put in place procedures for addressing any ‘red flags’ related to a consumer account when there are indications that the security of a consumer’s identity has been compromised. This document analyzes the pending proposal. Read more ...  
 

 FHA Delays New Condominium Requirements (10/09)
The FHA has announced that it will again delay the implementation of the
new regulations governing condominium mortgage insurance until December 7th, 2009. The new regulations were initially proposed in June and would change the approval process and the criteria used to determine if a mortgage for a unit in a condominium association qualifies for FHA mortgage insurance. Read more …  

 Senate Introduces Climate Change Legislation: Solar Mandate Not Included  (10/09)
The introduction of SB 1733, the Clean Energy, Jobs, and American Power Act, marks the continuation of the Congressional debate on global climate change legislation.  This Senate legislation excludes provisions preempting homeowner association covenants and rules governing solar panels.

 North Carolina Key Law Changes  (10/09)
Effective October 1, 2009, townhome communities, planned unit developments and condominiums in North Carolina will be subject to several statutory changes in both the Planned Community Act and the Condominium Act.  These changes in the law will require some additional procedures on the part of the HOA and on the attorney for the collection of delinquent assessments.  Additionally, there are enacted legislative changes affecting the use of solar collector devices in subdivisions or condos created after December 1, 2009.

 FHA Condo Insurance Regs Delayed --- But Still Flawed  (9/09)
The Federal Housing Administration (FHA) still plans to implement new regulations changing the approval process for a condominium to be eligible for FHA mortgage insurance. Originally scheduled to be implemented on October 1, the new regulations are now slated to take effect November 2, 2009.   

As proposed, the spot approval process would be replaced by a comprehensive approval process that expires every two years.  CAI believes the new regulations would be a serious burden for condominium associations, and lead to market confusion that could hinder the housing and economic recovery.  CAI has formed a working group of industry experts to identify specific areas of the regulations that need to be changed, and to prepare a policy position and supporting data to advocate the changes that are needed to make these regulations an effective tool for the housing market.  Read more ...     


 Illinois Manager Licensing Law FAQ Sheet  (9/09)
The Illinois Community Association Manager Licensing Act passed by the Illinois Legislature August 2009 requires community association managers to obtain a professional license to work in the state. A brief FAQ sheet about this new law has been developed to help members better understand key provisions.

 Illinois Licensing Law Is Signed   (8/09)
After years of discussions, coalition building, and drafting language, the Illinois Community Association Manager Act, SB 1579, became law on August 25, 2009.  The Illinois Legislative Action Committee, with support from CAI and NBC-CAM, led the initiative to establish important consumer protections, set professional standards for managers, and distinguish the unique role managers play in community associations.

 Kentucky Exemption Excludes Association Managers from Real Estate Commission's Jurisdiction  (8/09) 
This member-promoted exemption language, the result of industry’s multiple discussions and negotiations with state’s Association of Realtors and the Real Estate Commission, paves the way for the (new) Kentucky Chapter to expand the professionalism of the community association management industry throughout the state.

2010 State Legislative Sessions Calendar   (8/09)
While it seems to many that their state just completed governor’s actions on 2009 legislation, state legislatures have already released 2010 session dates.  Click on Calendar for a listing.

 Indiana Passes New HOA Statutory Provisions and Lien Statute Modifications  (7/09) 
HB 1071, effective July 1, 2009, has created new statutory provisions for homeowner associations.  Until the adoption of this statute, there was little statutory guidance for a community association in Indiana unless it was a horizontal property regime (a true condominium).  Additionally, a second part of this new law makes changes to an existing Indiana HOA lien statute, resulting in substantial changes.

 Georgia Session End Overview  (7/09)
Georgia Passes Foreclosure Deed Reporting & a Developer Expense Report Requirement

 Draft Regulations for Manager Licensing in Virginia Have Been Issued  (7/09)
In 2008, Virginia implemented a statutory based manager certification, management company licensing program.  As part of that program, the Common Interest Community Board (CICB) was charged with drafting regulations to clarify and assist with implementation of the new law.  On June 22, 2009 the CICB published proposed regulations to provide additional clarification to the state’s licensure requirements.  Once finalized, these regulations will become part of the permanent regulatory requirements governing licensing, replacing the initial set of emergency regulations.  CAI, on behalf of its members, will submit comments on these regulations.  Interested members are encouraged to review the proposed regulations and to submit any comments to CAI.

 Pennsylvania Resolution to Count the Number of Associations in the State  (7/09)
In what may be one of the first of its kind, a Pennsylvania resolution has just been approved that would establish a state government funded study counting how many private communities there are in the state and in each municipality.  Also under study will be how much these communities pay in taxes, and the age of the privately owned infrastructure in the private communities.

Climate Bill to Override Association Covenants (7/09)
Last week the House of Representatives passed ground-breaking and controversial legislation designed to change America’s energy use and to curb the emission of carbon dioxide and other greenhouse gases. 
Members read more ...

 Vermont Clothesline Legislation -  Behind the Scenes  (6/09)
Clotheslines are now “renewable energy devices” under Vermont’s new “Right to Dry” law.  Get a behind the clothesline peek at how this legislation developed and passed. Members read more ...

 Maine Priority Lien and Solar Bills  (6/09)   
In its first year as a LAC, the Maine Legislative Action Committee became involved in two significant pieces of legislation:  priority lien and solar rights bills.

CAI Engages Congress on Key Issues
One effect of the current economic crisis is that we find ourselves facing a set of once in a lifetime challenges and opportunities as the federal government works to address the many imbalances in the economy. The housing crisis has resulted in a re-examination of how the federal government regulates the mortgage markets while the economic slump spurred a historic $700 billion stimulus package of spending and tax cuts. As the year progresses, both health care and the environment will take center stage as sweeping reform proposals are considered.

As each of these issues could have a profound effect on homeowners, management companies and our business partners, CAI is working to ensure that Congress is provided with input on how their actions will affect the 1 in 5 Americans living in community associations.  Some of the issues we are following include: Federal Issues (6/09)

 May 2009 Telecommunications Report  (6/09)
See, especially, the May 25, 2009 court released opinion affirming the FCC’s October 2007 order, which banned cable operators from entering into agreements with CAI communities and real estate developments that grant the cable operator the exclusive right to provide video services on the property.  Members read more ...

 Nevada End-of-Session Recap  (6/09)
Nevada’s busy session ends, and a number of industry-impacting bills pass.  Included in this listing:  a super priority lien bill (AB 204) that is effective October 1, 2009.

 Washington CA Law Day Review  (6/09) 
Washington State’s first annual CA Law Day (June 6, 2009) exceeded expectations with 225 attendees.  The day-long event featured an array of industry legal experts offering nine different seminars on a range of topics, and included remarks by Andrew Fortin, Esq., CAI’s National VP of Government and Public Affairs. (See, also, Washington LAC and Chapter Team Up 2/09 below.)

 Texas End-of-Session Update  (6/09)  
The Texas 81st Legislative Session wrapped up on June 1, 2009. In the last week of the session, many bills died due to their failure to meet various House and Senate deadlines. CAI was incredibly involved in this session’s legislative process … and ended up with the best work product at the end of the Legislative Session.  For a “scorecard” on industry-related bills, and a THANK YOU to all who participated, please see this overview.

  Illinois Manager Licensing Law Likely This Year  (6/09)
The hard work and efforts of the Illinois Legislative Action Committee paid off last week when both chambers of the Illinois Legislature passed the (Illinois) Community Association Manager Act in a final vote May 30, 2009.  Next step:  the Governor's consideration.

 Vermont Clothesline Law  (6/09)
Vermont House Bill 446, relating to renewable energy and energy efficiency, became law on May 27, 2009 without Governor Jim Douglas’s signature.  This new energy law includes clotheslines under “renewable energy devices.”

 Maryland Insurance Legislation  (5/09) 
The Maryland General Assembly has acted to overturn the Anderson v Gables on Tuckerman case, 404 Md. 560, 948 A.2d 11 (2008), with the passage of HB 287.

 April 2009 Telecommunications Report  (5/09)
See, especially, the overview of  how the change in Administration will result in significant changes in the FCC membership.  Members read more ...  

 Fair Housing - Pets Court Decision  (5/09)
A court rules in favor of an association after a Board requests more information regarding the need for a service animal.

 Mortgage Modification Legislation Dies in Senate  (5/09)
The Senate voted 45 to 51 on April 30, 2009 to reject a proposal to allow homeowners to petition a bankruptcy court to rewrite their mortgage obligations. 

 March 2009 Telecommunications Report (4/09)
See, especially, the section on "How Might a New Commission Act on Matters of Interest to CAI?"   
Members read more. ..  

 Construction Defects and Voting Requirements Case  (4/09)
Construction defect case ruling in favor of an HOA

 Mortgage Cram Down Update (3/09)
H.R. 1106 passes the House of Representatives, and its companion legislation (S 61) awaits Senate consideration.  What are the key industry concerns with this legislation?

 February 2009 Telecommunications Report  (3/09)
Members read more...

Washington LAC and Chapter Team Up (2/09)
CAI’s Washington State Legislative Action Committee and Washington State Chapter have teamed up to host a Washington State Law Day and Mini Trade Show.
read more...

 First Look at the Federal Stimulus Bill (2/09)
In just a few short weeks in session, the new Congress has moved quickly to pass an unprecedented economic stimulus plan designed to help shore up the sagging economy. Known as the American Economic Recovery and Reinvestment Act, the 1,200+ page bill provides for more than $787 billion on a variety of tax cuts and spending programs as the country faces the toughest recession since the Great Depression.  Both the size and the scope of the legislation are stunning, and there will be more information rolling out on provisions in the bill beneficial to CAI members in the weeks and months ahead.


 New ADA Amendments (2/09)
On January 1, 2009, the ADA Amendments Act of 2008 became effective, significantly expanding the scope of the previous law.

 Clarification of Fannie Mae Delinquency Criteria (2/09)
On December 16, 2008, Fannie Mae announced new underwriting guidelines for mortgages in new condominium developments. Although the announcement was targeted at the lenders who work with Fannie Mae, the memorandum has been cause for concern throughout the condominium community, specifically over a provision related to delinquent member assessments. Because of the concern this provision has raised, CAI has reached out to Fannie Mae for clarification of the intent and application of this requirement.

 December/January 2009 Telecommunications Update (2/09)

Members read more ...

 2009-Digital Switch Deadline Delayed  (2/09)
The February 17th switch from analog broadcasting to digital is delayed by Congressional action.

 Nevada Members/LAC Secure Critical Victory  (02/09)
Thanks to the hard work of Nevada CAI members and the volunteers of CAI’s Nevada Legislative Action Committee (NV-LAC), the Nevada Legislature has sustained the Governor’s veto of Assembly Bill 396 (AB 396). The vote was one of the first actions of the new legislature as it opened its 2009 session. This victory means that - for now - associations in Nevada can continue to enforce traffic laws within their community, make independent editorial decisions in newsletters, better maintain common elements and adequately assess members for reserve funding. 


2008

 November Telecommunications Update  (12/08)
Members read more...

 Pre-Judgment Interest Calculation (12/08)
At what point in time should the calculation of pre-judgment interest commence in a construction defect action? The Colorado Supreme Court rules.

VA Licensing Application Available (11/08)
Virginia's Common Interest Community Board (CICB) has released the application for provisional licenses for common-interest community management firms operating in the state. Firms falling under Virginia's manager licensing law must complete and return the now available
CIC Manager Provisional Application to the CICB no later than December 31, 2008. CAI's guidance and resources, including a Virginia Manager Licensing FAQ, are posted.

Maine LAC Becomes CAI's 30th
On November 17, 2008, CAI's Board of Trustees approved the New England Chapter's application to form a legislative action committee (LAC), making the Maine LAC CAI's 30th. The founding LAC members are: attorneys Joseph Carleton and Lawrence Clough; and managers Paul Garrett, Robert Keegan and Debra Nugent. The Maine LAC will represent members in the public policy arena, and work on state legislative and regulatory activities important to the creation and operation of community associations. For more information, contact Chapter Executive Director Claudette Carini (
ccarini@caine.org).

 A First-Hand Peek Behind HAM Radio That Could Spur Future Dialogue (11/08)

 October Telecommunications Update (11/08)
Members read more...

 CAI Files Amicus Brief on Behalf of Homeowner in $550,000 Judgment (10/08)
CAI filed an amicus curiae brief September 30, 2008, in support of a Colorado condominium owner who won a lawsuit against his association over a long-standing water-intrusion issue. The District Court ruled that the association should pay $550,000 in attorney fees and related costs after what the trial judge called the association's "stubborn refusal" to address the problem. The association filed close to 30 motions, the case lasted seven years AND, according to court records, the original repair would have cost the association about $5,000-$545,000 less than the ultimate judgment against the association.

 September Telecommunications Update (10/08)
Members read more...

 California Legislative Victories Reflect Industry's Involvement (10/08)
Three steps forward in legislation that saw the Governor's review in late September 2008.

 August Telecommunications Update (9/08)
Includes: Information about a summary of the argument in response to the FCC's brief in support of its ban on exclusive video contracts and a section detailing ex parte communications with the FCC on the issue of bulk service agreements.
Members read more...

 New Jersey Legislation Concerning Sales in Age-Restricted Communities (9/08)
This new law requires certification by a purchaser or grantee that federal law will not be violated by a sale in an age-restricted community.

 Protecting Fannie and Freddie (9/08)
FHFA establishes a single regulator for GSEs and the Federal Home Loan Banks.

 Virginia Common Interest Community Board Appointed; First Meeting Scheduled (8/08)
Virginia's Common Interest Community Board appointees have been named, and the Board's first meeting is scheduled for September 4, 2008.

 July Telecommunications Update (8/08)
Includes: Information about numerous ex parte communications with the FCC regarding activities in the exclusive contracts docket; the FCC brief on the ban about exclusive video contracts; and an update on the New York legislation regarding mandatory access in favor of telephone service providers. Additionally, briefs have been filed in the National Cable & Telecommunications Association appeal regarding inside wiring, and the Court has docketed the case as No. 07-1356.
Members read more...

 Rhode Island Superlien Legislation Now Law—Effective July 2008 (7/08)
This legislation took a different route, becoming law, than the recent Pennsylvania super lien bill.

 Pennsylvania "Super-Priority" Lien Law Signed (7/08)
Pennsylvania legislation, effective July 2008, amends the state's Uniform Condominium Act by affirming condominium associations' statutory entitlement to the "super-priority" lien... 

 June Telecommunications Update (7/08)
Includes: Information about numerous ex parte communications with the FCC regarding rulemaking on private cable operators, exclusive marketing and bulk sales; intel on the June 13, 2008, Verizon filed petition for reconsideration asking the FCC to clarify its order banning exclusive agreements for voice service in residential properties; and state information about the newest state franchising laws and telco mandatory access.
Members read more...

 Changes to Virginia's Resale Disclosure Packets Requirements (7/08)
Effective this month, there are new requirements in Virginia regarding resale certificates and association disclosure packets. 

 Virginia Releases Compliance Information for the State's New Licensing Law (6/08)

 Re-Write of California's Common Interest Development Laws Dropped (6/08)
California will not see a re-write of the Davis Stirling Act, despite legislative and regulatory discussions (California Law Revision Commission). But look for legislation to be introduced in the 2009 legislative session. 

 May Telecommunications Update (6/08)
Includes: The multiple FCC ex parte meetings held on the bulk contracts and exclusive marketing arrangements issue, and Tennessee becoming the newest state franchise law state.
Members read more...

 Landmark Indiana Decision on Rental Restriction (5/08)
In a case about covenants and rentals, this state Supreme Court ruling may be of special interest for those associations that may have rental restrictions of some sort.

 Virginia Manager Licensing Bill Signed—Effective July 1, 2008 (5/08)

 New Georgia Laws (5/08)
Includes one law (effective July 1, 2008) that addresses what an association's obligation is regarding insurance coverage. 

 April Telecommunications Update (5/08)
Includes: Information about the FCC releasing two new petitions seeking the FCC's preemption of homeowner association rules that banned or limited the placement of antennas; and New York City and Verizon reach accord on franchise terms.
Members read more...

 Reserves & Disclosures Legislation Signed (4/08)
A new Washington state condominium association reserve studies and mandatory disclosures law is effective June 2008. 

 New Jersey Towing Law Effective 10/08 (4/08)
The Predatory Towing Prevention Act contains a section that applies to community associations and other property owners.

 Maryland Court Decision Will Impact Condominiums & Their Insurance Coverage (4/08)
In a decision that could have far-reaching repercussions for Maryland condominiums and their insurance coverage, this Court of Appeals holding will become effective after the Court issues its mandate (expected sometime after May 15, 2008).
Members read more...

 Feds Wade into Pool Safety (4/08)
Congress passed the "Virginia Graeme Baker Pool and Spa Safety Act" as part of a larger energy bill late last year. Virginia Baker, granddaughter of former Secretary of State James Baker, died when she was trapped by the suction of the pool drain at a neighbor's pool party. Virginia was one of more than 750 children who died in pool related drownings in 2002. 

 California Court Rules on Associations' Ability to Amend Governing Docs (4/08)
This case upheld an association's voting procedures and its method of obtaining consent of the holders of mortgages. 

 March Telecommunications Update (4/08)
Includes: Ban extended against common carriers entering into exclusive agreements with residential MDUs for voice services; FCC issues a Report and Order that expands the current ban on common carriers entering into exclusive agreements with the owners of office buildings to residential MDU settings.
Members read more...

 Virginia Manager Licensing Bill Passes Both Chambers (3/08)
When signed into law, this legislation would require that any person or entity engaged in management services in Virginia acquire a license, and any employees of management companies obtain a certification. 

 February Telecommunications Update (3/08)
Includes: Comments in response to the further notice of proposed rulemaking regarding order banning enforcement of exclusive access provisions; Court denies request to stay FCC order on enforcement of "exclusivity clauses."
Members read more...

 Reasonable Access Q&A Released (3/08)
Reasonable Modifications Under The Fair Housing Act, a recently released HUD/DOJ joint statement, offers technical assistance regarding the rights and obligations of persons with disabilities and housing providers relating to reasonable modifications. 

 Judgment Rendered in Maryland Resale Disclosure Statement Case (3/08)
A trial court has ruled about potential repairs and future assessments in a case that involved the state's Consumer Protection Act.
Members read more...

 California 2008 Education Bill Introduced (3/08)
In what may seem like legislative déjà vu, a California Assembly bill, providing basic education for volunteer Boards of Directors, was introduced in late February. 

 Uniform Common Interest Ownership Act Discussed (2/08)
The National Conference of Commissioners on Uniform State Laws meets to consider two important drafts.
Members read more...

 January Telecommunications Update (2/08)
Includes: Exclusive access to premises order; CAI's key points regarding further notice of proposed rulemaking on marketing agreements & bulk contracts; Dish Network calls for the FCC to expand OTARD rules.
Members read more...

 December Telecommunications Update (2/08)
Includes: Exclusive access to premises agreements; FCC refreshes competitive networks docket; Wisconsin adopts state franchise scheme for cable franchising.
Members read more...

FCC Order Delayed! New Regulations for Communities Pending (2/08)
The Federal Communications Commission proposal to ban enforcement of exclusive contracts has been delayed by a pending legal challenge. While that issue is sorted out, the FCC continues to issue proposals to expand its authority in ways that will directly affect community associations. CAI continues to submit comments to the FCC on their efforts.

 Florida Committee Holds Public Hearings on Governance Issues (2/08)
Florida's House Speaker has organized a Select Committee that, among other things, will hold public hearings on condominium and homeowners association governance issues. Meetings are being conducted across the state now. Information about the Committee's mission and meeting specifics are included here.

 Colorado's New Foreclosure Law Took Full Effect 1/1/08 (1/08)
Associations are encouraged to review the changes under this new law for possible impact on current and future actions.
Members read more...

 November Telecommunications Update (1/08)
FCC issues a "Further Notice of Proposed Rulemaking;" FCC refreshes Competitive Networks Docket.
Members read more... 

2007 

California Law Revision Commission Shares Recent Feedback on the State's Common Interest Development Law Study (12/07)
Among the community association issues under discussion of Statutory Clarification and Simplification of CID Law: fidelity bond insurance requirements; records/recordkeeping; and reserves.

States Work to Stem Foreclosure Rates (11/07)
Foreclosures—and more specifically—"solutions" to this problem, are being addressed through state and (perhaps) federal efforts.

FCC Makes it Official (11/07)
FCC issues official order banning exclusivity clauses for video services in residential communities. Check out our analysis and Q&A.

October Telecommunications Update (11/07)
Status and analysis of the recent FCC order regarding exclusive contracts; FCC refreshes competitive networks docket; and inside wiring update. Members read more...

California Manager (Voluntary) Registration Law Extended (11/07)
AB 691 reauthorizes, for another five years, the state's voluntary Manager Certification Titling Act.

Rhode Island's Legislative Action Committee (LAC) Formation Approved (11/07)
Rhode Island becomes CAI's 29th LAC.

Connecticut Manager Licensing Regulations Broadened Under Recent Legislation (10/07)
Effective this month, there are new manager registration requirements.

September Telecommunications Update (10/07)
The FCC considers the status of exclusive contracts; inside wiring update; CALEA compliance and possible effects. Members read more...

FCC Rules on Exclusivity Clause (10/07)
Commission reverses earlier decision; unanimously bans exclusivity clauses for video services in residential communities.

August Telecommunications Update (10/07)
The FCC refreshes the competitive networks docket; inside wire rules are now effective. Members read more...

Florida's Revised Association Architectural Provisions (9/07)
New architectural guidelines are now in effect. Members read more...

"Capital Contributions" Bill Passes in New Jersey (9/07)
Effective now, this new law permits the imposition of a capital contribution upon the sale or resale of a condominium unit.

New Illinois Manager Standards Law (8/07)
Effective January 1, 2008, community association managers will be required to maintain standards of professionalism and financial responsibility.

July Telecommunications Update (8/07)
The FCC saw a number of comments regarding video services exclusive contracts; an overview of competitive networks docket comments. Members read more...

New DHS Regulations Will Tighten Employers' Workforce Eligibility Procedures (8/07)
Effective September 14, 2007, new regulations will require employers to fire workers who cannot verify their work eligibility and whose social security number does not match federal records.

Colorado Clarifies Use of Plats and Maps in Common Interest Communities (8/07)
Legislation (HB 1362) to clarify the use of plats and maps in common interest communities under the state's Common Interest Ownership Act has been signed.

New Jersey Supreme Court Rules for Community Associations (7/07)
The final ruling in Committee for a Better Twin Rivers v. Twin Rivers Community Association upheld the ability of residents of a community association to impose reasonable limitations on the display of political signs, use of community property and content of the association newsletter.

June Telecommunications Update (7/07)
Two states have adopted new cable franchising laws. Members read more...

CAI Responds to FCC (7/07)
CAI, on behalf of its members, submitted comments to the FCC in response to the Commission's March 27, 2007, Notice of Proposed Rulemaking for video services in MDUs.

Texas is Out of Session (6/07)
Texas members can count some victories in this legislative session, despite missing out on getting a resolution to expedited foreclosures. For a full recap of the session, access the Texas Legislative Action Committee's summary. Members can access a full listing of tracked legislation via CAI's Advocacy Center.

Georgia Addresses Proposed Developer Exemption (6/07)
The typical legislative process, from start to finish, can be a series of challenges. Georgia details its work regarding a proposal to exempt developers from paying assessments in developing properties. Members read more...

May Telecommunications Update (6/07)
Includes: Updated listing of state franchising legislation; FCC and two inside wiring proceedings; enforcement of OTARD Rules. Members read more...

April Telecommunications Update (5/07)
Includes: Comments due on FCC exclusive contracts for video service; competitive networks docket; state telecommunications rewrite bills; COLR update. Members read more...

Homeowner Protection Act of 2007 (5/07)
Colorado's construction defect legislation has been signed after a fast track through both chambers.

Manager Licensing (4/07)
Few issues can impact professional managers more than state-mandated licensing. The issue has surfaced—along with legislation—in several states. Members read more...

March Telecommunications Update (4/07)
Includes: Exclusives in MDUs, competitive networks docket, and carrier of last resort regulations. Members read more...

Federal Overview (4/07)
While it may appear as if almost half of Congress is running or thinking about running for president in 2008, some industry-impacting issues have surfaced. For a rundown of these issues, and some first quarter 2007 commentary on Federal activities, go to Federal Section under CAI's Advocacy Center. Members read more...

February Telecommunications Update (4/07)
State level telecommunications rewrite bills and anticipated notice of proposed rulemaking. Members read more...

CAI Responds to AARP on "Bill of Rights" (3/07)
With more than 35 million members, AARP can be the proverbial 800-pound gorilla in any room. That's why we are taking very seriously a model statute proposed by this powerful organization.

Many Voices Change the Course of Georgia's Leasing Bill (3/07)
Georgia HB 261 proposes prohibiting members of community associations from restricting the number of homes that could be rented, or any other requirement (i.e. minimum lease). Can CAI members and homeowners affect the progress of this legislation?

"Limiting Homeowner Assembly in Neighborhoods" (3/07)
A critical look at the Twin Rivers case and what may be at risk for association homeowners.

Colorado "Homeowner Protection Act of 2007," construction defect legislation, was introduced earlier this month. (3/07)

Proposed Denver Water Rate Prompts Rocky Mountain Response (3/07)
See how the Rocky Mountain Chapter of the Community Associations Institute addressed a (significant) proposed water rate increase, and how the Chapter's involvement shaped the outcome.

January Telecommunications Update (2/07)
Efforts to ban exclusive contracts, Florida COLR rule's effective date, and state telecommunications rewrite bills. Members read more...

Condo Tax Break a Possibility? (2/07)
Could a tax break for condominiums and cooperatives that do not receive regular city refuse, recycling and bulk item collection services become a reality? See the City Council bill that is proposing this.

CAI's 2007 Issues: The Circle of Homeowners' Rights (1/07)
How can three seemingly disparate items tie together and, together and separately, have the potential to be the issues for CAI members this year? Members read more...

Texas Uniformed Planned Community Act (1/07)
Though the Texas Legislature may not meet in regular session every year, considerable work is done during the non-session time. View interim House and Senate committees' studies of a proposed Texas Uniform Planned Community Act (TUPCA).

Twin Rivers Overview and Possible Aftermath (1/07)
Members read more...

December Telecommunications Update (1/07)
FL proposed rule on carrier of last resort; state franchising legislation; status of federal legislation H.R. 3876. Members read more...

November Telecommunications Update (1/07)
OTARD enforcement; FCC Memorandum Opinion and Order regarding OTARD; likely issues to be seen in 2007. Members read more...

California Earthquake Insurance Discussions: What Will the Future Hold? (1/07)
Members read more...

2006

Deal or No Deal?
Skip Daum, the California LAC's Administrator/Advocate, muses on key legislative options that could be posed in community association discussions (reprinted with permission).

October Exclusive Contracts & OTARD Update (11/06)
Members read more...

North Carolina Legal Decision Overturned: Amending Original Docs (11/06)

2005 North Carolina Law: An Exemplar of 2007 Initiatives? (11/06)
House Bill 1541, effective January 1, 2006, has provoked considerable interest. Could this legislation, An Act To Amend The Laws Governing Homeowner Associations to Provide Greater Protections For Homeowners, be the type of homeowner "protection" bill that other states may see? Members read more...

Fall Telecommunications, OTARD, Inside Wiring Update (10/06)
Members read more...

SBA Unveils Revised Website to Help Businesses Navigate Regulatory Compliance Information (10/06)

Fair Debt Collection Act Amendments Under SB 2856 (10/06)
As part of recently passed legislation, there will be changes to this Act under the Financial Services Regulatory Relief Act of 2006 presented to the President.

FCC's Inside Wiring Rules (9/06)
With cable, telephone, and emerging new tech providers advancing their products, an understanding of some matters involved with this new environment may be important. Members read more...

FEMA Funding Approval Nears (9/06)
After months of negotiations, it appears likely that FEMA funding (and overhaul) could be approved; Agency to remain part of the Homeland Security Department.

HR 42 Compliance (8/06)
CAI's College of Community Association Lawyers (CCAL) provides an overview of the July 24, 2006, signed Freedom to Display the American Flag Act of 2005, as well as some compliance guidelines. Members read more...

Federal Flag Measure is Now the Law (7/06)
President Bush signed legislation on July 24 that gives residents in community associations the right to fly the American flag, but with limitations that give associations the right to establish and enforce fair and reasonable limitations on how flags are displayed.

CAI's Newest LAC (7/06)
The Utah Legislative Action Committee (LAC) becomes CAI's 28th LAC.

GA Right to Repair Legislation Passes (4/06)
Another tough legislative battle concerning right to repair legislation. Members read more...

Right to Repair PA Legislation Vetoed (3/06)
Pennsylvania saw a much debated and (heavily) amended bill vetoed this month.

New Jersey Court Rules on Homeowner Rights of Expression (2/06)
In a long-awaited decision with national implications, a New Jersey appellate court has ruled that Constitutional protections supersede the business judgment rule when a community association's actions impinge on the fundamental rights of homeowners to "engage in expressive exercises...."

Privatization Study Presented to Florida's Regulatory Council of Community Association Managers (2/06)
The findings of a just-released, independent study commissioned by CAI demonstrate that privatizing the regulation of the community association management industry in Florida could have several advantages over its current administration within the state's Department of Business and Professional Regulation.

LA Special Session Includes Insurance Issues (2/06)
Louisiana legislators will discuss several property insurance issues during the special session that begins February 6.

An Issue States Are Sharing at the Start of 2006 Sessions (1/06)
Examine an issue that states are currently discussing, prompted by a 2005 court decision. Members read more...

Will Hawaii Condo Managers Need to be Certified? (1/06)
The Hawaii Sunrise Review has been completed, and the recommendations released.

2005

President Signs TRIA Extension  (12/05)

2005 Elections and Their Impact on 2006 Issues and Politics (12/05)
Can we predict the outcome of 2006 mid-term elections by the results of November's wins? Members read more...

TRIA Extension Passes; Next Step: President's Desk (12/05)
Just days before the Terrorism Risk Insurance Act of 2002 (TRIA) was set to expire, a compromise bill has been passed.

TRIA Expires at Year End—Or Does It? (12/05)
The House and Senate are working on compromise legislation that would extend the Terrorism Risk Insurance Act of 2002 (TRIA) that is due to expire this month.

Catastrophic Insurance Issues Capture Hill's Attention (11/05)
In a case of the Feds following the states' lead, a comprehensive catastrophic insurance bill was introduced in Congress on November 17.

Florida Omnibus Community Associations Bills Filed (11/05)
Florida gets a jump start on its 2006 session by introducing comprehensive legislation. Members read more...

State Synopsis of the Regulation of Community Association Managers (last updated 10/05) (11/05)
Understanding the importance of competent professional community association management, some states have taken steps to regulate the profession. Members read more...

Multi-State Insurance Regulators Convene Catastrophic Insurance Summit (11/05)
Meeting in San Francisco November 15 and 16, insurance commissioners from several states, along with the National Association of Insurance Commissioners (NAIC), will convene to discuss and devise a national catastrophic insurance plan.

More Florida Hurricane Insurance Investigations
The state's Office of Insurance Regulation has just released the results of a market conduct exam that reviewed Citizens Insurance Company's handling of the high volume of claims from the 2004 hurricane season. (11/05)

Florida Insurance-Related Orders (10/05)
Recently, a number of Florida insurance-related orders or rules have been issued. While some of these releases are a result of recent weather, the Consent Order released October 12 refers to claims from the 2004 hurricane season. Contact information for each of these items has been provided should further information be needed.

2005 Legislative Summary and 2006 Preview (10/05)
With information from several Legislative Action Committees (LACs) and the CAI legislative database, take a look back at some key legislation (passed as well as introduced) seen this year. Combined with a brief political overview, staff looks ahead to the 2006 political landscape that could impact issues.

 

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