Info Bytes 09.22.22
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 <<<
We ask the tough questions and give you the answers: view results of over a dozen surveys focused on common interest communities.
💰 INTEREST RATES & MONETARY POLICY 💰
Up, Up and Away!
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
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!
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.
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."
+++ Have a question that you'd like to ask directly to your peers? Ask YOUR listserv! +++
Homeowners | Volunteer Leaders | Managers & Management Companies | Vendors
>> Condo Connection is completely free to view 24/7/365 <<
Click here to learn how you can support homeowner-centric information and resources for common interest communities (CICs).
Take action to support value-added alternatives to CAI that prioritize the interests of CICs and their homeowners.