Welcome to Ungated

Forget Nostradamus, this 15+ year old Calvin and Hobbs cartoon accurately predicted the US and world economy this past year.  Who knew??:

April is just around the corner and CAI will once again be visiting New Orleans for our National Conference, continuing our tradition of great cities, great education, and great networking.  The hotel room block is filling fast, so make sure that you get your reservations at the Sheraton before all the rooms are gone.  Don't forget that the deadline for Early Bird Registration is March 24th.  Get your conference registration to us by then and save $50.

And for those of you who want to add another great experience to your trip,  New Orleans Jazz and Heritage Festival (Jazzfest) kicks off its opening weekend Saturday and Sunday right after conference ends.  Celebrating 40 years of peace, love, and crawfish, over 200 performers are scheduled to appear.  In these challenging economic times we all need a little music to feed our souls and great food to feed our bodies.  Check it out.

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.

In our first review of the legislation, we’ve identified several provisions that may be of interest to CAI members.

HOMEOWNER TAX BREAKS

$8,000 first time homebuyer tax credit for homes purchased in 2009.Under the stimulus bill a first time homebuyer will be entitled to an $8,000 tax credit for a home purchase in 2009. This is an increase of $500 from the $7,500 tax credit passed by Congress in 2008. Unlike the 2008 credit, the $8,000 credit does not have to be paid back by the homeowner. The tax credit phases out for taxpayers with an adjusted gross income of $75,000 (single filer) or $150,000 (joint filers).

This is less than the tax credits that CAI and the Fix Housing First Coalition were supporting for all home purchases, but it is a step up from the current $7,500 tax credit that a homeowner must repay.  

$400 tax credit for Singles, $800 for Couples. The act also provides for a refundable tax credit of up to $400 for single filers and $800 for families. The rebate would be calculated at 6.2% of earned income and phases out at incomes of $75,000 for single filers and $150,000 for joint filers.

Unlike the rebate checks in recent years, those qualifying for the tax credit need to make affirmative adjustments to their income withholdings to get the money added to their paychecks or wait to get the full benefit up completion of the their 2009 tax returns.

Sales Tax Deduction for New Car Purchases.  Taxpayers with an adjusted gross income of less than $125,000 for single filers and $250,000 for joint returns can take a tax deduction for any state, local and excise taxes on a new automobile purchase made in 2009.

Tax Credits for Energy Efficiency Improvements.  Taxpayers will be allowed to take a tax credit of up to 10% of the cost for qualified energy efficiency improvements undertaking in the current taxable year.

Extension of Alternative Minimum Tax Relief. The stimulus bill extends relief for taxpayers who might fall under the Alternative Minimum Tax by increasing the ATM exemption to $46,700 for single filers and $70,950 for joint filers.

BUSINESS TAX BREAKS

Extension of Bonus Depreciation. Extends the ability of a business to take an immediate 50% write off for the cost of depreciable property acquired in 2009 by extending provisions from 2008 allowing for accelerated depreciation.

Extension of Small Business Expensing. Extends until 2010, provisions that allow a small business to write off capital expenditures of up to $250,000 for expenses incurred in 2009 with an income phase out of $800,000.

5 Year Carry-Back on Net Operating Losses. Allows small businesses, with gross receipts of $15 million or less, to carry back losses from the current 2 to 5 years before the loss arose.

Incentives to Hire Unemployed Veterans and Disconnected Youth. Employers who hire unemployed veterans or disconnected youth can qualify for a tax credit that equals up to 40% of the first $6,000 ($2,400) of wages for the hired employee. An individual would qualify as an unemployed veteran if they were discharged or released from active duty from the Armed Forces during the five year period prior to hiring and received unemployment compensation for more than four weeks during the year before being hired. An individual qualifies as a disconnected youth if they are between 16 and 25 and have not been regularly employed or attended school in the past 6 months.

The debate on whether or not these tax and spending incentives will be enough to turn the economy around begins now. In the coming weeks, we will be reporting on developments in many of the areas discussed above and other provisions that may be of benefit to you as a CAI member.

On December 16, 2008 Fannie Mae issued new mortgage underwriting guidelines for condominiums projects. The new rules reflect the higher standards demanded by the market following the bursting of the housing bubble. Most of the new criteria apply to new condominium projects; however, Fannie Mae has refined a provision related to condominium association delinquencies which will be applied to all new and existing condominium developments. The guidelines provide that underwriting decisions will take into account the delinquency rate of an association and have set a bench mark that associations should have no more that 15% of units no more than 30 days delinquent. This requirement was widely reported in the press as being a make or break threshold for mortgage underwriting determinations. The reality is that it will be one of a variety of factors in the underwriting decision process.  More information on this issue can be found here.

 

2009 looks to be an important year for housing issues at the federal level. Decisions on how to stimulate the economy and to restore confidence in the mortgage markets and banking system will have a follow on impact on community associations. CAI will be engaged with key decisions makers in DC to ensure that the impact of these decisions on community associations is heard and considered.

CAI’s North Carolina and South Carolina Legislative Action Committees (LACs) each received $2,500 grants to support their efforts to pass community manager licensing legislation in their states. Both LACs have spent a considerable time working with members across the region to build consensus on proposals. Both bills would provide needed protections for home owners, and adopt licensing standards set by industry professionals as embodied in certifications like the CMCA and designations like the AMS, LSM, AAMC and PCAM.  The licensure of professional community association managers, when set to the standards developed by management practitioners, adds value to all CAI members.

Thanks to the hard work of Nevada CAI members and the volunteers of CAI’s Community 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.

 

Passage of AB 396 would have resulted in communities that were less safe, less governable and less able to take action to preserve the home values of their residents.

 

CAI members and LACs have been working on grassroots opposition to a legislative override of the Governor’s veto. Today’s vote is well earned victory for CAI members and their allies - more so if you consider that the original legislation passed both chambers in 2007 with only 2  “No” votes. Congratulations.

For more info on AB 396 click here.

 

Congratulations to all of our Nevada members who contributed to this effort.

If you didn't make it this year you missed an outstanding Law Seminar in Palm Springs, California.  Over 430 attorneys, managers, risk management specialists, and others took in the sunshine and the education at Rancho Las Palmas.  For those of us who managed to escape the cold and snow it was a real January treat.

Thanks to all our speakers for sharing their knowledge and to the Law Seminar Planning Committee and the CCAL Board of Governors to all of their work in putting together a great event.

Looking ahead, next years Law Seminar will be January 21 - 23 at the Westin La Paloma in (also sunny) Tucson, Arizona.

And don't forget, our next National Conference is coming up in New Orleans from April 22 - 25, 2009. 

Just one week left until CAI's 30th Annual Law Seminar in Palm Springs, California.  Join over 400 attorneys, management company executives, risk management professionals, and other industry leaders for this comprehensive assessment of legal issues and practices in the community association industry.

Luck is what happens when preparation meetings opportunity - Seneca (Roman philosopher 1st Century AD)

I am a great believer in luck, and I find that the harder I work, the more I have of it - Thomas Jefferson

Congratulations to Capt. Sullenberger and the rest of the crew of USAirways 1549, along with everyone who contributed to the rescue evolution.  A clarion reminder that navigating a crisis takes training, preparation, and a cool head.

Solid research and data on community association living is tough to come by.  That's why the Foundation for Community Association Research has worked with Zogby International over the past several years to conduct independent, statistically valid research into homeowner preferences and perceptions.  You can read about our most recent survey here.

And that is why we try to support legitimate and relevant research into community associations, their members, and their operations, wherever and whenever we can.  Hannah Wiseman, a visiting assistant professor at the University of Texas School of Law is currently conducting a nationwide survey in an attempt to better define the factors that attract residents to common-interest communities.  The 10-question survey asks community association residents what they disliked about their former communities and what they believed a common-interest community would offer. 

Wiseman needs as much input as possible from community association residents across the country to support her study.  You can complete the survey yourself or forward it to others if you are in a position to do so.  The survey is online and can be accessed at www.surveymonkey.com/s.aspx?sm=JdAFijUlceVBKVNYSrDjsA_3d_3d and should take less than 10 minutes to complete.  Surveys should be completed by January 31, 2009.  Professor Wiseman can be contacted directly at hwiseman@law.utexas.edu or 512-232-3646 if there are any questions.  She has agreed to share her results with CAI at the completion of her study and we will pass them on to our members.

We recently completed our first six months of the EveryOne Counts Membership

Campaign and I am thrilled to report in six months CAI

has added more than 3,000 new members!  With every new member CAI

becomes a stronger organization.  You, our members, are the best

advocates for membership.  Recruit just one member and you will be

entered to win one of our quarterly prizes and join the ranks of CAI’s

Recruiter Club.  During the first six months of the campaign more than 500

CAI members recruited nearly 1,000 new members.  Nearly half of the

recruiters during this time frame were first time recruiters.  Pass on ONE

copy of Common Ground, invite ONE client to a chapter event or send a link

to CAI’s website, www.caionline.org to a colleague.  Just have the potential

member add your name to their membership application and for each

member you recruit, you will be entered to win one of the quarterly prizes or

the grand prize of a vacation package, including airfare, hotel, rental car

and spending money!

 

A special thank you to our ONE Campaign sponsors for their generous support:

ACE DuraFlo

ATG

Reserve Advisors

---

Don't think you can win?  It just takes one!  Just ask our first two quarterly winners. 

Karen Johnson, a community manager in Bethesda, Maryland was our first winner.  Karen recruited one member during the first quarter of CAI’s EveryONE Counts Membership Campaign and won a 32” flat screen plasma television. 

Kimberly Lax, CMCA,AMS, a community manager from
Tucson, Arizona  recruited one community manager in October – her first recruit and won $500 in gas cards in our second quarter drawing.

And you can win too. 

Each quarter of the Campaign, every member who recruited another member during that quarter is entered into a drawing for one of our quarterly prizes.  All recruiters from May 1, 2008 – April 30, 2009 will also be eligible for the grand prize, a vacation package including airfare, hotel, rental car and spending money!  Spread the word —make ONE phone call, have ONE conversation or send ONE e-mail.  You could be a winner just like Karen and Kim.  And remember each new member makes CAI a stronger and more effective advocate for all members—community, managers, homeowners/board members, management companies and business partners alike. 

This past summer, Virginia has became the most recent state to adopt a licensing and certification requirement for professional community association mangers.  The law will provide homeowners with the assurance that their community association manager has a minimum set of qualifications needed to handle the complex and challenging task of community management.

 

Under the law, management companies and other covered entities must make an application for a provisional license to manage communities in Virginia by December 31, 2009. After this deadline, the full requirements of licensure will become effective. CAI has set up an information resource page where you can find a copy of the licensing application as well as information on the new law.  You may find that information here.

 

By statute, persons holding a CAI or NBC-CAM certification will be considered to have met the individual certification requirements and companies holding an AAMC will have met the qualifications for corporate licensure. In adopting the CAI/NBC-CAM family of certifications and designations the legislature has deferred to the experts on management, including the many CAI volunteers who’ve worked to develop these programs over the years.

CAI PMDP instructors Mike Packard and Rob Felix and I had the unique opportunity to spend 10 days in Dubai recently as the guests of Emaar Properties. 

Emaar is one of the largest developers in the world and is currently constructing some of the largest, most complex, and most unique developments in Dubai.  Their Burj Dubai project will include the Burj Dubai Tower, the tallest building in the world, along with the Dubai Mall, with over 1,200 stores, a hockey rink, a 10-million-gallon aquarium, and the usual theaters, restaurants, and other attractions, plus 30 additional residential, commercial, and hotel buildings, many over 30 stories tall.

CAI was asked to travel to Dubai to help educate the managers of Emaars' various residential properties on best practices in community management.  Mike and Rob delivered a M-100 program to 35 members of Emaars' Residential Management Department and administered the CMCA exam as well.  The class included managers from Emaars' community management operations in Dubai and Saudi Arabia. 

We were all very impressed with the education, commitment, and skills that the Emaar managers brought to the course and the many projects that they are managing.

We also had the honor of attending and speaking at the first ever Dubai Community Managers Forum, where we had the chance to meet many other members of the Dubai community management industry including developers, management companies, and government regulatory officials.

I have posted some other photos from our Dubai excursion.  Just click on the "Photos" folder in the right column and then click on "Dubai". 

Some other thoughts, impressions and observations:

- There is construction literally everywhere.  If there were a state bird it would be the construction crane.  As a result, it is frequently hazy from all the dust.  And hot and humid too....98F in late October.

- Every project and building is unique.  The attention to architectural design, materials, and artistry is simply amazing.  In addition, many projects include a significant public art component ranging from sculptures and water features to intricate designs and materials in the sidewalks.

- They are building the infrastructure at the same time as the developments.  As a result, the infrastructure (particularly transportation) is challenged to keep up with the growth in population.  In other words, traffic is terrible!!

- Dubai is a melting pot with people for all over the world who have come to help build and be part of its amazing growth and transformation.  So you can find aspects of many other cultures across the city....even an Irish pub with rugby, soccer (football), and cricket via satellite.

Special thanks are due to Jeevan D'Mello and Sameer Kulkarni, who lead the community management department at Emaar.  They were our day-to-day hosts in Dubai, ensuring that we had a chance to meet people, see the city, and thoroughly enjoy this unique opportunity.

Just returned from our most recent APCM Workshop in Florida.  While I was there I had the chance to have lunch with Bob Reinhardt and Dot Thomas at Resource Property Management in Seminole which is one of 142 Accredited Association Management Companies (AAMC) across the country.  Imagine my surprise when I pulled into their parking lot and saw this.

It is wonderful to see a company that has made the commitment to the AAMC (and by extension to their employees and clients) and is sharing it proudly with their community.  Not familiar with the AAMC program.  Learn more here.

Jeffrey Koger, previously CFO of Koger Management Group in Fairfax, VA pleaded guilty this past Monday to defrauding more than 400 associations in Northern Virginia of over $3 million.  In pleading guilty to one count of wire fraud and one count of tax evasion, Koger faces federal sentencing guidelines of from six to eight years in prison.  The plea agreement also stipulates Koger make full restitution to the IRS and the homeowners associations he defrauded.

More information from the Washington Post here.

One of our functions at CAI is to encourage active and informed participation by residents in the governance of their community's. A key to building harmonious communities is active engagement of residents. So, in case you missed the near constant campaign commercials of the past few months (it only seems like years), I wanted to encourage everyone to vote on Tuesday, November 4, 2008.

Regardless of your party or candidate of choice, voting is both an honor and obligation of citizenship.  I encourage you to do so.

And don't forget, election officials in across the country are expecting record breaking turnout. Long lines for voting are likely. So plan accordingly.

Tom

Tomorrow I depart for a week in Dubai, United Arab Emirates.  Along with CAI members and instructors Mike Packard and Rob  Felix, we will be traveling Dubai to administer the first of what we hope will be many CAI educational courses to community managers in this rapidly growing part of the world. 

Working with one of the world's largest developers, Emaar, we will be teaching the M-100 course and administering the CMCA exam to a class of over 30 Emaar employees.  In addition, we will be meeting with a broad group of other management companies, professionals, and service providers to discuss issues and challenges facing Dubai as it continues its rapid growth.

I will be sure to post an update and photos when I return.

In addition to the upcoming November 7th APCM Workshop in Florida, a number of CAI events are open for registration.

The 2009 Law Seminar will be held on January 30-31, 2009 in Palm Springs, California.  Note: Hotel rooms are going fast, so make your reservations early.

CAI's 58th National Conference and Exposition will take place April 22 - 25, 2009 in New Orleans, Louisiana.  Conference this year will coincide with the New Orleans Jazz and Heritage Festival (JazzFest), one of the must unique and rewarding musical and culinary adventures in the world. 

And coming soon,

Additional APCM Workshops for Managers in Southern California and Dallas, Texas and the 2009 CEO-MC Retreat at Torry Pines, California.  More information and registration forms will be posted on the web site in the coming weeks.

And finally,

Next week we will launch CAI Connect, a new webinar tool, to provide additional distance learning opportunities for our members.  CAI Connect is a fast, convenient, and easy way to expand your knowledge without ever leaving the office and at the same time earn valuable credits for your CMCA recertification and AMS renewal.  I am very pleased to announce that our first webinar will address the new community manager licensing program in Virginia and will be presented by long-time CAI leader and chair of the Virginia Common Interest Community Board Pia Trigiani, Esq.  Every manager and management company owner in Virginia will want to attend this important program.