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Info Bytes 07.28.22

CIC Info Bytes are frequent, succinct updates that provide educational and engagement opportunities to help your community thrive! Subscribe to receive CIC Info Bytes updates by email . Join us on Reddit at r/HOA .

ISSUE # 43

CIC Info Bytes 07/28/22

CIC Info Bytes are frequent, succinct updates providing educational and engagement opportunities that help your community thrive! Please forward and share this newsletter with your peers, neighbors and colleagues so they can connect and join .

Our goal is to curate content that provides a robust basis for contextual understanding to support practical takeaways for you and your association. This bi-weekly newsletter is packed to the brim. We've done our best to create meaningful section breaks and incorporate engaging visuals. When in doubt, Ctrl + F!

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The Latest

2022 Reserve Survey

Take the 2022 RESERVE QUESTIONNAIRE

As always, YOUR participation is key! Please grab your favorite beverage, get comfy and relax your way into this ~15 minute survey.

Full results will be published the first week of August. View results from 2021

CAI is conducting a reserve study survey that asks questions related to structural integrity.

Take the survey: https://www.surveymonkey.com/r/LP293SV

Blog, News & Discussion

DON'T. FIGHT. THE. FED.

Are your reserve funds earning a respectable return?

  • The FOMC unanimously approved another 75bps overnight lending rate increase to a target range of 2.25% to 2.5%

  • If you're locking up funds more than 3 months at a time... you're betting against the Fed which is expected to raise the overnight lending rate to between 3% and 4% by EOY

The US GDP (Gross Domestic Product) contracted again in Q2

A look at this week's rates… (as of Thursday, July 28)

  • Note the yield curve inversion! Shorter-term maturities are elevated vs. longer-term maturities.

  • “As it relates to September, I said another unusually large increase could be appropriate, but that's not a decision we're making now; it's one that we will m ake based on the data we see” - Fed Chair Jerome Powell

  • Mr. Powell reiterated that it's still a good bet that the central bank will push its target rate to between 3% and 3.5% by year-end. - Michael Derby, WSJ

U.S. GDP, change from previous quarter
75 BPS 4 Week Treasury Bill Rate
Principal Guaranteed Securities: Don't Trade Convenience for Yield

Principal Guaranteed Securities: Don't Trade CONVENIENCE for YIELD

Highest Yield treasury rates Fidelity money market yields as of 07/27/2022

Governance Matters

  • ‘Ask Your Attorney’…Only When Reasonable

    • This week's Governance Matters is a short about the phrase “ask your attorney” which is tossed around incessantly

    • Despite overwhelming heaps of potentially confusing governance, asking your attorney is NOT always reasonable.

      • There are many places to find answers that don't involve $300 to $500/hr!

    • When DON'T you ask your attorney?

      • When you know exactly what you're doing!

        • Digging in and educating yourself (for free!) has immense benefit to your community whether you're volunteering or getting paid

    • So … when DO you ask your attorney? Some suggestions:

      • When you're assuming

      • When the Board can't seem to agree

      • When the Board and CAM are stumped

      • When making unintuitive, consequential decisions

      • When you don't know what you don't know

      • When you initiate or respond to a legal challenge

      • When you know enough to know you need help

Discussion Highlights

Resource Updates

We've added two completely new resources this week.

>>> Everything is free to view online!

>>> Subscribers: feel free to download new and updated resource material from your ZIP folder access.

Unit Resale and Resale Certificates

  • NEW! Unit Resale & Resale Certificates

    • Resale requirements vary by state. This page focuses on Washington State requirements.

    • Most communities allow their management company to provide resale certificates, but fail to provide oversight:

      • WA state caps resale certificate fees at $275

        1. ALL INCLUSIVE: NO EXCEPTIONS!

      • A statistically large number of resale certificates are:

        1. invoiced at more than $275 total

        2. materially deficient in their content

Model Oath of Office
CIC State Statute Project

+++ Have a question that you'd like to ask directly to your peers? Ask YOUR listserv! +++

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A Note About Ukraine

The people of Ukraine are undergoing tremendous displacement from their homes coupled with loss of life, tragedy and suffering. Considering the global landscape can help us gain perspective in our daily lives.