Welcome to Ungated

Just wanted to wish all of our members a Happy Thanksgiving.  And a special thank you to all of our volunteers who make our chapters, education programs, committees, and events work and make CAI a true community. 

On Thursday, November 19, 2009, FHA hosted a conference call discussing the newly released condominium guidelines. The call was the first outreach by FHA to lenders and other interested parties to begin the process of clarifying detail and taking questions related to the impact of the new requirements. Two of the areas of concern for CAI did come up in the discussion.

First, FHA discussed how they view the implementation of the budget review process required by the guidelines. FHA noted that their primary concern is that lenders review the budget to ensure that the budget is adequate, that there are provisions for funds for the upkeep and maintenance of common elements and roughly 10 percent of the budget is dedicated to reserves. The discussion focused on the reasonableness of the budget examined and FHA indicated that lenders should look to such mitigating factors as recently replaced common elements of the property. If these criteria are not met, then the lender or FHA will request a reserve study undertaken within the preceding 12 months.

 

Next, FHA staff touched on the issue of dues delinquency. Under the guidelines, condominium association with more than 15% of units 30 days delinquent in assessments will not qualify for FHA approvals. On the call FHA staff noted that this is an area that requires further work. CAI has expressed its concern that the 30-day, 15% delinquency rate, calculated by units is not an accurate measurement of an associations financial health. Rather, CAI has suggested that the FHA should use a longer delinquency period of 90 days and to look at the association budget to see if it has a line item for bad debt. CAI will continue to engage them on this issue.

 

Also FHA acknowledged that collection of data on owner occupancy levels may prove to be problematic and indicated that based on feedback from the condominium industry (i.e.- CAI) they will have to continue to work through this issue.

 

While many questions remain and many concerns will need to be addressed, CAI’s message is being heard.  

 

In the weeks to come FHA will be releasing additional information to answer questions posed by CAI and other organizations. CAI will continue to provide updates and to formulate tools to assist our members in understanding the approval process and how to position their association to meet the requirements. check the Legislative Heads Up page of our website for new information as it becomes available.

Recently the Federal Housing Administration (FHA) issued two new guidance letters on proposed transitional and final criteria for FHA mortgage insurance on condo loans.  You can see the guidance letters on the FHA website here and here.  CAI has also prepared a summary of the most recent guidance and an FAQ for those who would rather not wade through all the regulatory language. 

CAI continues to speak with FHA staff on a regular basis to attempt to address our members continuing issues with this program.  As additional information becomes available we will post it on our legislative Heads Up page, so keep checking back for more updates.

CAI has just learned that 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 go into effect on June 1, 2010.  CAI will continue to monitor and communicate our concerns to the FTC on this issue and update our members as necessary.  Our Legislative "Heads Up" page will be updated with additional information as it becomes available.

No, not the kind that NFL coaches throw when they think the refs have missed a call and want a video review, but the kind the Federal Trade Commission is talking about and writing regulations about. 

CAI's Legislative Heads Up web page has more information, but in short, “Red Flag” rules require that certain entities that extend credit or payment plans to consumers adopt policies to flag consumer identity theft.  The big question, of course, is do these rules apply to community associations?   As is the case with most complex government regulatory schemes the answer is a clear and unequivocal "MAYBE".

Generally the attorneys we consulted believe that these rules probably don't apply to most community associations, but they were concerned that the broad nature of the regulatory language may mean that the regulations could apply under certain circumstances. Because each association is different, and their assessment policies, special assessments etc, may be handled differently, it is impossible for us to say one way or the other if the rule applies to any specific association or circumstance.

 

Which means each association needs to examine their policies and procedures regarding payments from owners in consultation with their association attorney.  To help get that conversation started, we have put together a explanatory memo, with a sample policy, that is designed for an association to use in conjunction with advice from their attorney to understand the rule and make a final determination as to implementing a policy in their community. 

CAI learned this morning that the FHA has announced that it will again delay the implementation of the new regulations governing condominium mortgage insurance until December 7^th, 2009. Previously scheduled to go into effect in October and then November, these new regulations were initially proposed in June of 2009 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.

The proposal would replace the current spot approval process with a new comprehensive approval process under which approvals would be good for two years. CAI has scheduled a meeting with FHA staff tomorrow (Friday October 23rd) to provide input from our members and better understand FHAs goals, objectives, and expectations for these new regulations.

Additional information will be posted to our Legislative Heads Up page as it becomes available.

On September 30th, Senators Boxer and Kerry introduced SB 1733, the Clean Energy, Jobs, and American Power Act on September 30th.  The Senate bill DID NOT include language from the previously approved House bill that would have overridden state law in 35 states, local regulations, and homeowner association rules related to solar power and replaced them all with a one-size-fits-all answer to solar solution crafted in Washington.  Find out more on CAI's Legislative Heads Up page.

As noted in an earlier post, Governor Pat Quinn signed a bill requiring the licensing of community association managers in Illinois.  The bill goes into effect this coming January and we anticipate final regulations to be developed and released sometime in 2010.  For more information, CAI has developed a set of frequently asked questions to help our members understand the new law and the anticipated timeline for implementation.

There is still time to win an iPod by completing the salary survey.

The Foundation for Community Association Research is again producing its Manager Compensation and Benefits Survey. This report will be a valuable tool for benchmarking compensation and benefit levels in the community association industry.

The Compensation and Benefits Survey will include data on:

• Annual wages paid to community managers, including large-scale, onsite, portfolio, CEOs, and others
• Employee benefit information
• Vacation and sick leave
• Retirement and pension plan information

Both members and non-members can  participate by clicking this link www.caifoundationsalarysurvey.com
The survey should take less than 10 minutes to complete. To enter the survey, create a unique account for with your e-mail and a password of your choosing. This will enable you to return to the survey later, if you need to, and to access online results.

Results of the survey will be available in printed and online reports. Participants will have access to a personalized, confidential online report comparing their compensation figures to those provided by other respondents, and will be entered into a drawing to win one of three iPod shuffles.

To compile the survey results, the Foundation has once again retained the services of Industry Insights, Inc. survey research firm. Strict confidentiality will be maintained at all times. Neither CAI nor the Foundation will see any individual responses or data.

Please complete the survey by September 25, 2009. If you have any questions, please do not hesitate to contact the Foundation for Community Association Research at foundation@caionline.org.

Earlier this week, Governor Pat Quinn of Illinois signed the Community Association Manager Act which creates education and licensing requirements for community managers practicing in the state.  CAI's Illinois Legislative Action Committee, along with the Illinois Chapter and its Managers Committee led a multi-year effort to move this bill through the legislature.  The key goals of this new licensing structure are to create minimum qualifications to practice community management, impose a disciplinary structure for manager misconduct, require initial and continuing education to receive and renew a license, and provide expanded protections for consumers.

Thanks to all our volunteer members in Illinois who have been working on this proposal for several years and special kudos to LAC Chair Mark Pearlstein and Managers Committee Chair Bill DeMille for their leadership on this effort.

But the signing of the bill only begins the process.  Regulations to implement it will still need to be developed, managers still need to be educated on the requirements, and associations will need to be informed as well, so the Chapter and LAC still have important work to do.  But even the longest journey begins with a single step and this is a big and important on in Illinois.

More information is available on CAI's Legislative Heads Up and Manager Licensing pages. 

 

Polls are open until Friday night for the ongoing MRG elections.  Please take a few moments to consider the candidates and cast your vote. 

Later this week CAI Board of Trustees President Ed Thomas and I will be departing for a community association conference in Australia as guests of their CAI-equivalent, the National Community Titles Institute.  This biennial conference put on by Griffith University brings together industry leaders from across Australia and around the world to learn from one another, solve problems, and network.  Photos and updates will be forthcoming on our return.

The voting website for CAI’s Membership Representation Groups is now open! The MRG's represent CAI's three unique groups of members, association volunteers, managers, and business partners.  Learn more about CAI's governance and then log-in to the election site and cast your vote.

The election site will be open until Friday, August 28 at 11:59 PM Pacific Time. Please do not wait until the last minute to cast your vote, since we want to be able to provide you with assistance if you have any questions.

Now is your opportunity to select the CAI leaders who will represent you. CAI is your organization and your vote counts!

I hope everyone will excuse a post today that doesn't have anything to do with associations and our industry in any way.  I received the following email yesterday and it struck such a chord with me that I wanted to share it with our members across the country.

Like many I was captivated by HBO's Band of Brothers miniseries.  The juxtaposition of the actors portraying these brave men with the documentary footage of their personal recollections provided unique insights into these most uncommon acts of common men.  Frankly I was so struck that I went out and read the original Stephen Ambrose book that was the basis for the series, along with about a dozen others on World War II. 

The email below was written at the height of the Michael Jackson death/memorial service frenzy.

Tom

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Subject: MEMORIAL SERVICE FOR "SHIFTY"

We're hearing a lot today about big splashy memorial services. I want a nationwide memorial service for Darrell "Shifty" Powers.   Shifty volunteered for the airborne in WWII and served with Easy Company of the 506th Parachute Infantry Regiment, part of the 101st Airborne Infantry. If you've seen Band of Brothers on HBO or the History Channel, you know Shifty. His character appears in all 10 episodes, and Shifty himself is interviewed in several of them. I met Shifty in the Philadelphia airport several years ago. I didn't know who he was at the time. I just saw an elderly gentleman having trouble reading his ticket. I offered to help, assured him that he was at the right gate, and noticed the "Screaming Eagle", the symbol of the 101st Airborne, on his hat. Making conversation, I asked him if he'd been in the 101st Airborne or if his son was serving. He said quietly that he had been in the 101st. I thanked him for his service, then asked him when he served, and how many jumps he made. Quietly and humbly, he said "Well, I guess I signed up in 1941 or so, and was in until sometime in 1945 . . . " at which point my heart skipped. At that point, again, very humbly, he said "I made the 5 training jumps at Toccoa, and then jumped into Normandy . . . . do you know where Normandy is?" At this point my heart stopped. I told him yes, I know exactly where Normandy was, and I know what D-Day was. At that point he said "I also made a second jump into Holland , into Arnhem ." I was standing with a genuine war hero . . . . and then I realized that it was June, just after the anniversary of D-Day. I asked Shifty if he was on his way back from France , and he said "Yes. And it's real sad because these days so few of the guys are left, and those that are, lots of them can't make the trip." My heart was in my throat and I didn't know what to say. I helped Shifty get onto the plane and then realized he was back in Coach, while I was in First Class. I sent the flight attendant back to get him and said that I wanted to switch seats. When Shifty came forward, I got up out of the seat and told him I wanted him to have it, that I'd take his in coach. He said "No, son, you enjoy that seat. Just knowing that there are still some who remember what we did and still care is enough to make an old man very happy." His eyes were filling up as he said it. And mine are brimming up now as I write this. Shifty died on June 17 after fighting cancer. There was no parade. No big event in Staples Center . No wall to wall back to back 24x7 news coverage. No weeping fans on television. And that's not right. Let's give Shifty his own Memorial Service, online, in our own quiet way. Please forward this email to everyone you know. Especially to the veterans. Rest in peace, Shifty. "A nation without heroes is nothing."Roberto Clemente   Tom here again.  According the the Urban Legends website the email above is factual and has been confirmed by Shifty's family.    So on behalf of CAI and our members across the country, let this serve as our modest tribute and memorial to Shifty Powers and to all the men and women past, present, and future who leave the safety of their homes and put themselves in harm's way on our behalf.  Please feel free to leave a comment below.  RIP Shifty.

A quick look in any bookstore tells you that one version or another of “everything you need to know about condominiums and HOAs” is readily available to the interested consumer. I’ve yet to come across one that quite has it all.  Or one that is unbiased, or professionally published.

 

Long time CAI member Gary Poliakoff and his son Ryan have come closer than anyone to getting it right. Dad’s decades of legal experience and son’s literary talents have combined nicely to produce the comprehensive and well written New Neighborhoods: The Consumer's Guide to Condominium, Co-op, and HOA Living. It’s debuting August 1^st in Borders, Amazon and Barnes & Noble.  But, CAI has it in stock now, so you can look over the table of contents and order it for 40% off the regular non-member price in our bookstore today.  And don't forget to check out all the other titles and merchandise in the CAI bookstore.