Info Bytes 07.28.22
CIC Info Bytes are frequent, succinct updates that provide educational and engagement opportunities to help your community thrive!
The Latest
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
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
This is a typical recession indicator
Learn more! Free link: The Wall Street Journal
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
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
This unfortunately happens quite often (the internet is full of endless examples).
Cue the Model Oath of Office!
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.
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
ALL INCLUSIVE: NO EXCEPTIONS!
A statistically large number of resale certificates are:
invoiced at more than $275 total
materially deficient in their content
NEW! MODEL OATH OF OFFICE
Our Model Code of Ethics (Ethics page) now has a corresponding Oath of Office
Also see our Duty of Care and Decision-Making 101 pages
N.B. A post highlighting this new Oath of Office keeps getting removed from CAI’s Exchange Forum. I guess it’s bad for business!
CIC State Statute Database Project
We need YOUR help to create a comprehensive CIC state statute database
Please email us if you're interested !
+++ Have a question that you'd like to ask directly to your peers? Ask YOUR listserv! +++
Homeowners | Volunteer Leaders | Managers & Management Companies | Vendors
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.
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