Info Bytes 09.22.22

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Final results of this survey will be published next week. You’ll get to view preliminary results immediately after completion.


Global Financial System in Turmoil…

  • The 10yr Treasury yield broke above 4%, but is still inverted (lagging behind shorter term government debt (1yr, 2yr, 3yr, 4yr, 5yr). - WSJ

  • ‘Volatility vortex’ slams into $24tn US government bond market - Financial Times

    • “Right now it is all about market volatility,” said Gennadiy Goldberg, a strategist at TD Securities. “You have investors staying away because of the volatility — and investors staying away increases volatility. It is a volatility vortex.”

Dun dun . . . dun dun . . . dun dun dun dunnnnnnnnnnnnn!
10yr Treasury Yield Chart - 2010 to September 2022
Fixed Income & Bond Yields


  • Extreme moderation makes it practically impossible to post comments to CAI's sunshine and rainbows marketing publication, HOA Resources. The same might be said for CAI’s Exchange Forum where the thread about this topic disappeared after 72 hours. Here’s a capture of the thread before it went missing.

  • The latest missive from HOA Resources, titled Top 3 Benefits of Living in an HOA, posits that HOAs are great because they are 1) governed by neighbors, 2) managed by professionals and 3) protect property values. Common interest communities of all types can be great places to live, but the scant evidence included in this article fails to support its thesis.

1) Governed by Neighbors: Quote: Volunteer leaders are accountable to the neighbors who elect them. That’s only true in certain associations where Board omnipotence and homeowner complacency has not taken hold.

2) Managed by Professionals: A significant portion of the 355,000+ common interest communities (CICs) in the United States, especially those that are 20 units or less, are not managed by a third party firm. To wit: 43% of condominiums in Seattle are 10 units or less. Even in managed communities, homeowners are constantly flummoxed by the actions and advice (and lack thereof) of their manager and management company. This is the reason for writing Great Expectations! and creating tools like the CIC Governance Matrix.

3) Protect Property Values:- Have you ever seen a study (even a questionable one) proving the relationship between CC&Rs and property values in similarly situated neighborhoods? If you know of such a study, please share it!

  • The article gets at least one thing right (albeit the understatement of the year):

    • While CC&Rs are developed and enforced to protect all homeowners, they do not eliminate occasional disagreement and discontent.

Resource Updates

📖 Governance Hierarchy (again!) 📖

Following last week’s update to our governance hierarchy diagram, we’re up to it again! This time we’ve built an inverted pyramid structure intended to be even more intuitive.

  • How does this work? Start at the top with STATUTES and work your way down to BOARD DISCRETION which comes – yes wait for it – at the very end (unless you’re dealing with omnipotence in which case you just burn the diagram and dream some things up with Stable Diffusion & DALL-E 2 (you can sign up for free; we promise good fun).

  • Each band is a ‘weighted’ relative to its overall influence and scope of applicability on your governance.

  • Want to know more? View our Duty of Care page:

  • Discretion is not reasonably exercised when:

  1. the procedures laid out in the governing documents and relevant statutes are not followed

  2. 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...

Statutory & Governing Documents Hierarchy

Governance Matters

  • Remedies Limited by Ambiguity

    • Precision of language in your governing documents matters, especially when it comes to a court of law. In Homes Association of Cedar Hills v. Craig, the Oregon State Court of Appeals found that language in the association’s declaration could be reasonably interpreted two different ways and, without any evidence of intent provided by either party, resolved the ambiguity in favor of the defendants and against the party responsible for drafting the language: the association.

    • Read more about enforcement case law on our Enforcement page.

  • Rage Against the Machine

  • "Deed restrictions are construed in accordance with their plain meaning in favor of a grantee [such as a homeowner] and against a grantor [such as a homeowners' association]."

+++ 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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