Policy
Community Associations Institute (CAI) supports and recommends consideration and adoption of the one or more of the Uniform Community Association Acts by all states. In those states where it is not appropriate, practical or possible to adopt one or more of these uniform acts in their entirety, CAI supports and recommends consideration of appropriate portions of these laws.
Background
Since the original condominium statutes in the United States were drafted in the 1960s, we have had more than 50 years of experience in the development and operation of common interest communities. Associations now govern nearly 22%-24% of housing in the United States and this percentage keeps increasing. Experience has shown that the early statutes, although thoughtfully drafted and the product of the best thought of their time, did not deal adequately and completely with many of the issues that we currently encounter in the development and operation of common interest communities. The Uniform Law Commission’s work has improved practices over the years.
CAI recognizes that, in many states, adoption of Uniform Community Associations Acts in their entirety, or in part, is not possible because of other considerations of state law and the need for practical political compromise in the legislative process.
CAI recognizes that condominiums require a statutory basis, but that some states go beyond an enabling act and impose a comprehensive statutory scheme balancing development flexibility with disclosure and consumer protection. Although other forms of community associations, such as cooperatives and planned unit developments (PUDs), can be developed under the common law, some states choose to impose statutory regulation. In those states, CAI believes that the uniform acts are the best statutory framework and should be enacted.
Historically, association developers, boards and homeowners in states with inadequate association legislation could rely on underwriting guidelines from Fannie Mae and Freddie Mac to standardize the rules and protect consumers. Now that the future of these entities is in question, as is their role in housing, the adoption of the uniform acts in such states becomes even more important.
Recommendation
CAI recognizes and believes that the individual CAI chapters and Legislative Action Committees in various states are in the best position to determine what legislation can be passed in those states. As a result, CAI provides substantial latitude to them to determine which legislation to support in their states, as long as it is not inconsistent with other CAI policies. If legislation is being contemplated or proposed regarding statutory authority for any common interest community, the CAI Government & Public Affairs Department offers its resources and experience in this area.
Policy History
Adopted by the Board of Trustees, October 9, 1993
Approved by the Government & Public Affairs Committee, April 17, 2013
Adopted by the Board of Trustees, August 15, 2013