Info Bytes 09.22.22
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ISSUE # 49
CIC Info Bytes 09/22/22
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
TAKE IT:
2022 CIC Staff Compensation $urvey
We ask the tough questions and give you the answers: view results of over a dozen surveys focused on common interest communities.
NEW BLOG! Down to Earth: Omnipotent Boards & Unilateral Decision-Making
INTEREST RATES & MONETARY POLICY
Up, Up and Away!
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The FOMC bumped rates another 75bps yesterday putting the overnight target lending rate between 3% and 3.25%.
- The Dot Plot was revised higher, with FOMC members expecting rates to reach 4.4% this year and 4.6% next year. – Bloomberg
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Want to invest your funds in principal-guaranteed securities? The safest place this year has
been 4-week Treasuries! What's your APR?
- “Why is anyone buying a 3.50%-ish 30-year Treasury TMUBMUSD30Y ? The only logic that squares the circle is that inflation will overshoot to the downside.” – Jeffrey Gundlach
- Keen on taking a vacation? Incredible Dollar strength in part due to a hawkish Fed means that exchange rates are more favorable now than ever before. This trend won't last forever, so make a plan!
Resource Updates
Governance Hierarchy
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We've updated our governance hierarchy diagram to include more information. It pairs well with a glass of whatever you're drinking and our blog articles .
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What doesn't the diagram explicitly reveal? CIC Board decision-making comes last. Washington State is home to at least two state supreme court cases addressing discretion. Here are some quotes from our Duty of Care page :
- Discretion is not reasonably exercised when:
- the procedures laid out in the governing documents and relevant statutes are not followed
- the information used in the decision-making process is not reasonably accurate
- Courts do not owe deference to an association's interpretation of its governing documents, but courts do owe appropriate deference to an association's reasonable discretionary decisions.
- Riss suggests that when a [CIC] makes a discretionary decision in a procedurally valid way, courts will not substitute their judgment for that of the association absent a showing of "fraud, dishonesty, or incompetence (i.e., failure to exercise proper care, skill, and diligence). Reasonable care is required."
- Discretion is not reasonably exercised when:
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