Info Bytes 08.18.22
CIC Info Bytes are frequent, succinct updates that provide educational and engagement opportunities to help your community thrive!
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We’re keen to post a new survey.
Have ideas? Please let us know!
We ask the tough questions and give you the answers: view results of over a dozen surveys focused on common interest communities.
💸 INFLATION REDUCTION ACT 💸
President Biden signed the Inflation Reduction Act into law on Tuesday, 8/16/22
The legislation includes multiple major provisions spread across hundreds of pages (none of which actually reduce inflation). One notable provision related to CICs is funding to implement the HOMES (Home Owner Managing Energy Savings) rebate program.
READ: Summary of the Inflation Reduction Act (The Hill)
READ: How new US tax credits, rebates will work for clean energy home upgrades
READ: Heat pumps: what they do and why they're hot now
Related to PART 2—RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES
💰 FINANCE EDUCATION 💰
Why to Watch the Fed Balance Sheet: This 75 second YouTube video presents a wealth of information about factors that influence FOMC decision-making.
💉 COVID-19 💊
The CDC relaxed restrictions on Thursday, August 11
📰 ARTICLE OF THE WEEK 📰
There’s some SUPERB advice in this article from New England Condominium.
BUSINESS UP FRONT: Common interest communities are a business – a fact that board members and shareholders/unit owners should keep in mind when volunteering for their building or community and setting expectations for what a board can accomplish. “It’s not about them as individuals,” it’s about operating a business. So you’ve got to do what’s right for the business and not for yourself. If you can’t do that, you shouldn’t be on the board.”
Quote by Jeff Roude, partner with Sax LLP (accounting and tax)
✪ AWARDS! ✪
WSCAI (WA State) is seeking nominations for four annual awards:
Homeowner / Volunteer Leader of the Year
Community Association Manager (CAM) of the Year
Business Partner (Company) of the Year
WSCAI Contributor of the Year
Submit your nomination(s) by Wednesday, August 31, 2022
If you like this newsletter, please feel free to nominate!
?💣! HEAD SCRATCHER ?💣!
CAI’s “HOA Resources” marketing service published “Dealing with Inflation” with some befuddling statements made by someone with too many letters behind his name. Let's learn to be wary of the arguments from positions of authority...
“Reserve studies are not subject to the whims of a Board.” HUH?!
In Washington State (and many others), the decisions relating to the preparation and updating of a reserve study must be made by the board of directors of the association in the exercise of the reasonable discretion of the board. - Direct quote from RCW 64.34.388
With few exceptions (Florida recently tightened its statutes), the vendor you pay does not have the final say in your reserve study (which is often a good thing).
“Requesting bids from multiple vendors…will allow communities to find the best deals possible…” Multiple bids are great! Bottom-fishing is NOT.
“Saving money” by eschewing appropriate levels of service is a recipe for spending more in the long-run. “Cutting back” is hard to do for associations that spend only on the necessities.
Short-term thinking often causes long-term challenges
There's a HUGE update
coming next week!...
What's Wrong With Owner Participation Before Board Votes? [paywall]
If you don’t have an active CAI subscription, view the conversation here.
Jim Norman, a former Board volunteer and in-house CAM for a community in Colorado, highlights the goal of transparency in common interest communities.
Holding open meetings where owners (members) are allowed to participate before decision-making (voting) occurs is a key tenant of reasonable governance. Also see our August 11 Governance Matters.
+++ Have a question that you'd like to ask directly to your peers? Ask YOUR listserv! +++
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