02.15.24

ISSUE # 85

CIC Info Bytes 02/15/24

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.  Please consider following us on Twitter and Reddit. 

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Washington State: Requirements for Voting

• ALL community associations in Washington State must comply with these voting requirements as of July 25, 2021.  

RCW 64.32.280, RCW 64.38.120, RCW 64.34.340, RCW 64.90.455

Subsection 3 (d) Whenever proposals or board members are to be voted upon at a meeting, a unit owner may vote by duly executed absentee ballot if:

(i) The name of each candidate and the text of each proposal to be voted upon are set forth in a writing accompanying or contained in the notice of meeting; and

(ii) A ballot is provided by the association for such purpose.

Subsection (4) When a unit owner votes by absentee ballot, the association must be able to verify that the ballot is cast by the unit owner having the right to do so.

Subsection (6) Unless prohibited or limited by the declaration or organizational documents, an association may conduct a vote without a meeting. In that event, the following requirements apply:

(a) The association must notify the unit owners that the vote will be taken by ballot.

(b) The notice must state:

(i) The time and date by which a ballot must be delivered to the association to be counted, which may not be fewer than fourteen days after the date of the notice, and which deadline may be extended in accordance with (g) of this subsection;

(ii) The percent of votes necessary to meet the quorum requirements;

(iii) The percent of votes necessary to approve each matter other than election of board members; and

(iv) The time, date, and manner by which unit owners wishing to deliver information to all unit owners regarding the subject of the vote may do so.

(c) The association must deliver a ballot to every unit owner with the notice.

(d) The ballot must set forth each proposed action and provide an opportunity to vote for or against the action.

(e) A ballot cast pursuant to this section may be revoked only by actual notice to the association of revocation. The death or disability of a unit owner does not revoke a ballot unless the association has actual notice of the death or disability prior to the date set forth in (b)(i) of this subsection.

(f) Approval by ballot pursuant to this subsection is valid only if the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action.

(g) If the association does not receive a sufficient number of votes to constitute a quorum or to approve the proposal by the date and time established for return of ballots, the board of directors may extend the deadline for a reasonable period not to exceed eleven months upon further notice to all members in accordance with (b) of this subsection. In that event, all votes previously cast on the proposal must be counted unless subsequently revoked as provided in this section.

(h) A ballot or revocation is not effective until received by the association.

(i) The association must give notice to unit owners of any action taken pursuant to this subsection within a reasonable time after the action is taken.

(j) When an action is taken pursuant to this subsection, a record of the action, including the ballots or a report of the persons appointed to tabulate such ballots, must be kept with the minutes of meetings of the association.

Records Galore

• Colorado’s DORA recently provided an excellent presentation about record retention and disclosure requirements of CCIOA.

DORA HOA Forum Records Presentation — January 26, 2024     |     DORA Recent HOA Forums

Dirty Deeds

• The new and proper Board of a community association in Georgia wanted to share the misdeeds of two different (former) law firms.  The gist of this is a management company and two different law firms doing what they wanted and putting it in writing.  The remedy?   Find new representation!

Email with  Lazega Johanson and Dunlap Gardiner LLP - December 2023

Stolen

• Community associations make easy pickins'!

…According to a news release from the Pinellas County Sheriff’s Office, Stephanie Lopez, 56, was the manager of the Mediterranean Manors homeowners association in Dunedin. Detectives began their investigation in May after Lopez’s employer, Harbeck Hospitality, reported that she was embezzling money from the homeowners association, the news release states.

An arrest report from the sheriff’s office says that over the course of 3½ years, Lopez used the company’s credit card to pay for personal items without permission, including her mortgage, new windows and siding for her condominium, Spectrum internet bills and Amazon purchases.

Lopez spent a total of $24,664.88, according to the arrest report….

Oldsmar woman stole nearly $25K from homeowners association, detectives say — Emily Wunderlich | Tampa Bay Times | February 8, 2024

Penalties and Foreclosure

• Hawaii is no stranger to escalating tensions between owners and associations.

Rosita Sipirok-Siregar admits her Makakilo home could be neater.  But the septuagenarian retiree says it was overkill for her condo association to hire Honolulu lawyer Kapono Kiakona to run up a $3,300 legal bill to collect just over $300 in alleged fines...

…Sipiro-Siregar acknowledges that her front stoop has at times been cluttered. She also admits that her shoe rack doesn’t meet association specifications, which her next-door neighbor also doesn’t follow. But Sipirok-Siregar says it’s not justified for the Association of Apartment Owners of Westview at Makakilo Heights to force her to sell her home…

Sipirok-Siregar expresses confusion about the situation, including the sobering reality that the association can foreclose on her property to collect payment under Hawaii’s condo law. At the same time, she denies she has ever fallen behind on paying maintenance fees, as Kiakona’s letter alleges…

It Started With A Messy Front Porch. Now The Condo Association May Take Her Home — Stewart Yerton | Honolulu Civil Beat | January 16, 2024

Repair Despair

• Ouch.  Remember Repair Limbo from Issue# 73 and Housing Authority Isn’t Helping from Issue# 75?

Hurricane Ian’s storm surge took less than 24 hours to flood homes and rip down walls, but some Southwest Florida homeowners have waited more than 10,000 hours for their homes to be livable again.

Nine residents of Naples' Vanderbilt Towers III, which stands just off the Gulf near Delnor-Wiggins Pass State Park, have banded together to file an injunction against their homeowner’s association after their first-floor condos were gutted down to the studs and concrete, and then left exposed to the open air...

...“I begged them to put up plywood just to close it in," Penoyer said. "They wouldn’t. They said it was too expensive."  In a year and a half, the first-floor condominium owners have not been able to get back into their condos...

...The suit alleges breach of fiduciary duty and declaration, and as such requests equitable relief and appointment of a receiver…

Naples condo owners battle HOA over Ian repairs — Kate Cimini | Naples Daily News | February 05, 2024      (Alt URL) 

When Hurricane Ian chewed through Southwest Florida more than a year ago its powerful winds and floodwaters wreaked havoc on thousands of properties. But in Island Park Village, a 55-and-over condo community in unincorporated south Lee County, it was the efforts to rebuild that ripped the neighborhood apart. 

More than a year later its homeowners are mired in financial trouble, lawsuits and infighting – and the vast majority of the homes are still uninhabitable.  

The 85-condo section stretches across just three streets in Island Park Village. The cul-de-sacs are lined mainly with wood-sided duplexes, save a few standalones. Many front yards boast cheerful decorations: brightly colored flowerpots, American flags, or small, ceramic statues.  

But few residents have returned to the once-peaceful community where neighbors had gathered regularly at the former homeowner's association’s president’s house for drinks and bonhomie…

'The worst thing in Florida:' Lee County HOA lost millions, homes unfinished after Ian repair — Kate Cimini | Fort Myers News-Press | January 11, 2024 (Alt URL)

Uninhabitable

• District of Columbia: River East at Grandview Condominium [46 units].  

It has been nearly three years since dozens of first-time home buyers were forced to flee their crumbling Anacostia condominium because the District deemed the newly-constructed building unsafe.

Ever since, homeowners said, they have existed in a state of limbo — unable to return to life as they knew it and unable to truly move on. For many, the forced departure triggered a cascade of events that has forever changed the course of their lives…

…Moving back is not an option. Several structural engineers found the River East at Grandview Condominiums, on Talbert Street SE, dangerous, unlivable and structurally unsound; its very foundation has for years been sinking toward a steep drop-off that slopes down toward the residential street below.

Instead, owners of the 46 condo units in the building have awaited news of what comes next in rental homes largely subsidized by government vouchers. Two lawsuits against developers and the city agencies that greenlit the Grandview project have been winding their way through the court system. In 2021, the developer filed for bankruptcy….

VIDEO: They fled crumbling D.C. condos three years ago. Their lives were never the same.

— Marissa J. Lang, Michael Brice-Saddler and Danny Nguyen | Washington Post | February 12, 2024

Order to Vacate

• Panama City Beach, Florida: Tower III at Calypso Resort Condominium: 

On Thursday night, residents at the high-rise condo were greeted with some unsettling news.

“My daughter called me to tell me that we’ve got a problem and that we’ve probably got to get out and evacuate because of a safety issue,” said Glenn Shenton, Panama City Beach winter resident.

“We just got a call from our realtor, the people we bought from, and they just said they were evacuating the whole building, and we had two days to get out,” said Lora Cleaveland, Panama City Beach winter resident.

Residents received a note from Calypso management stating that the city received a concerning report from Slider Engineering Group…

Tower III at Calypso Resort Condominium … releases statement on Tower III vacate orders — WJHG | February 11, 2024

VIDEO: Guardrail issues lead to evacuation notices for Calpyso Tower III residents… — Austin Maida | WJHG | February 09, 2024

Atlanta Housing Authority Says “NO”

• Atlanta, Georgia: Peyton Place HOA: Housing Authority Housing Choice Vouchers (“Section 8”) don’t work at Peyton Place because the property is in severe disrepair.

Poorly run HOA boards can make life miserable for residents, but they can also impact the community's ability to find affordable housing…

“I said OK, I’m going to do what I can to work with the HOA on that and then I realized rather quickly that they had zero intentions of making any repairs, having any meetings, fixing things up, etc.”

VIDEO: Section 8 won't let tenants live in this HOA's Atlanta complex — Rebecca Lindstrom and Mike Nicolas | 11 Alive | February 12, 2024

South Carolina HOA Complaints 💥

• South Carolina has a formal way to report HOA complaints and numbers show those complaints are on the rise.  Part of the reason?  More homeowners are aware of the opportunity to report.  View prior coverage in Issue# 69.  Live elsewhere?  Several states have ways to Get Help!

  1. 2023: 517 unique complaints (56% YoY increase) raised a total of 742 concerns.

  2. 15.1% about failure to adhere to and/or enforce covenants and bylaws.

  3. 12.4% about concerns regarding maintenance and repairs.

  4. 11.5% about failure to notify residents of Board actions.

  5. Sixty-seven percent of complaints included in the report were closed indicating receipt of an “adequate business response” (ABR).  ABR Translation: association responses such as: “this complaint is without merit and outside of scope of the DCA.”

  6. Consumers were satisfied with the outcome of the complaint resolution process in twelve complaints (3.3%).  Examples of satisfactory resolutions include refunds/credits/adjustments being issued ($3.407.90), requested financial information being provided and repairs or maintenance being made.

Homeowners Association Complaint Reports

Richland County ranked 2nd highest in number of HOA complaints

— Kevin Connaughton and Mayra Parrilla-Guerrero | WIS News 10 | February 2, 2024

Consumer complaints against South Carolina homeowner associations (HOAs) have more than quadrupled since official record-keeping began in 2018, according to a new S.C. Department of Consumer Affairs report. And that’s part of what is fueling renewed calls for better HOA regulation in a state where more than 25% of residents live under association governance.

Surge in HOA complaints fuels calls for regulation — Jack O’Toole | Statehouse Report | February 09, 2024

This is Wrong

• What’s going on here?  Reference Reform Required in Issue# 83 and Stifling Dissent in Issue# 76.

At El Conquistador condo complex in Kendale Lakes, an attorney for the association sent three unit owners letters accusing them of defaming the board and harassing staff. 

Farther north, at the Star Lakes condo near North Miami Beach, when the association filed multiple foreclosures against residents over unpaid assessments, it was also the lawyer who did the legwork. 

And in Miami Gardens, at the New World Condominium Apartments, a property manager allegedly failed to vet an unlicensed roofing contractor, leading to a fire, a lawsuit says…

“Do sometimes community association managers and attorneys act in the interest of individual directors? Absolutely,” said attorney Eric Glazer, a condo law expert. “The management company and the attorneys are afraid that they are going to get fired should they not completely have the backs of the board members, even if they are engaging in wrongdoing.”

Inside Attorneys, Property Managers’ Roles at Condos, HOAs — Lidia Dinkova | RealDeal | February 01, 2024

Board: Sell the Park!  Owners: Nope!

• San Antonio, TX: Thrush Ridge Park in the Deerfield Owners Association.

…A dozen North Side residents of the Deerfield neighborhood near Loop 1604 and Blanco Road are suing their homeowners association over its plan to sell property that for years has been used a park — a move they say would diminish the neighborhood and their property values.

The association says the sale would allow it to make other owner-backed improvements in the neighborhood.

But the homeowners say development of the area now known as Thrush Ridge Park would eliminate a gathering place for residents and a habitat for animals. The homeowners have interests in common areas, they argue, and because the park should be considered a common area, the Deerfield Owners Association does not have authority to sell it…

North Side neighbors squaring off with homeowners association over plan to sell park… — Madison Iszler | San Antonio Express-News | February 03, 2024

Developer Abandons Neighborhood

• Livingston Parish, Louisiana: Foxglove subdivision.  An unfortunate situation.

VIDEO: Another D.R. Horton subdivision under duress…

D.R. Horton subdivision under duress after finding out HOA may never be turned over to home owners — Daniel McClain | WBRZ2 | January 31, 2024

Intractable Board Control

• The answers in this column including receivership and a lawsuit are telling: 

Q: My luxury condo building in Manhattan has fallen into disrepair, and the board of managers is thwarting efforts to improve it. Over the past 10 years, we’ve been unable to reach a quorum for the annual meeting, which has prevented any new candidates from joining the board or voting for any real changes. The board declares there’s a lack of quorum, but attendance is not taken. The president has been there since the board began, more than 35 years ago. Mandatory work is awarded to questionable contractors, and there have been rumors of impropriety. For example, the board distributed a memo announcing a $100 penalty for each piece of correspondence distributed within the building, such as fliers in public areas or under doors. Owners’ efforts to organize have been rebuffed. What can we do?

The Condo Board Is Ruining Our Building! How Do We Get Them Out? — Jill Terreri Ramos | NYT | February 03, 2024

Who Manages the Manager?

• This is THE central question in many community associations:

Homeowner Feedback: Management companies provide a well-known model which can be a psychological comfort to owners.  Despite its popularity (perhaps because it is viewed as cost-effective), portfolio management often outsources supervision & quality control of work product (accountability) to clients to such an extent that each hour of management company labor (usually via a community association manager “CAM”) must be discounted by the volunteer hours required to track and validate the results (communication, contracts, financials, follow-up, etc.).  The error rate in the portfolio management work product is so high that the volunteer labor required to investigate, supervise and intervene greatly reduces the value of management services.

Kelly Richardson, Esq: Who watches the manager? The HOA board does.

Reader Questions: Who Watches the Managers? — Kelly G. Richardson | R|O | October 23, 2024

The following sections outline reasonable goals, accountabilities, expectations and tasks that are often expected of condo managers, but which should be subject to the needs of the community and negotiated agreement with the condo manager or third-party provider.

Even when strong performance is observed, it is always helpful and supportive to provide individuals with clear and constructive feedback on their performance.

Irrespective of whether the individual is an employee, or contracted through a third-party condo management provider, if the relationship has become difficult and improvements have not been observed in a reasonable timeframe, the right decision may be to terminate the relationship and seek alternatives.

EXCELLENT RESOURCE: CAO Best Practices Guide: Overseeing Condo Managers

...I have also counseled many clients who were unhappy with their manager’s performance that they can, and should, change managers or management companies to get better performance, but they have been unwilling to consider a change, and were unwilling to even express their dissatisfaction with the manger because of concerns that a change would cost more money, or would be disruptive to the community. 

Even if you don’t want to change managers, providing constructive feedback to your manager, or asking them to modify their conduct to better meet your needs, should be a routine part of the relationship between a Board and its manager.  

— Ken Harer | Condo Law Handbook | 2019

Noisy Neighbors

• The following article suggests seven points to address “noisy neighbors” as a reasonable but not perfect start.  What to Do: When Things Go Askew: “if you have a concern with a neighbor, consider letting them know.”

  1. Know your rights

  2. Confront your neighbor (carefully)

  3. Document

  4. Gather support

  5. Soundproof your home

  6. Seek mediation

  7. Call the police

What to do about your noisy neighbors — Annie Midori Atherton | Washington Post | February 06, 2024

Tax Obligations

• Relevant in South Africa and the United States: pay your taxes!

SARS tax alert for complexes and gated communities in South Africa – what you need to know — BusinessTech | January 29, 2023

Not just affordable housing.  Attainable housing, but at “market rate.”  🤔

Several properties in the South End neighborhood of Tacoma, along South Hosmer, are receiving a new purpose through "attainable housing units."...

Will turning hotels into apartments lower crime? New plan carried out in Tacoma — Paul Rivera | KOMO News | February 09, 2024

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Corruption in the NYCHA is a black eye for affordable housing.

As many as 70 New York City Housing Authority employees were arrested Tuesday in a federal corruption investigation.  U.S. Attorney Damian Williams announced the largest single-day bribery takedown in the history of the Department of Justice.  The alleged conduct started in 2013 and ran until 2023. The defendants have been charged with allegedly accepting cash payments from contractors in exchange for awarding NYCHA contracts.

The dozens of current and former employees of NYCHA demanded $2 million in bribe money from contractors in exchange for giving out more than $13 million in work at NYCHA buildings, officials say. Contractors who failed to pay a kickback were cut out of work, officials say.

Officials announced that superintendents accepting and extorting bribes for contractors had become business as usual, occurring in almost 100 NYCHA buildings across all five boroughs -- nearly 1/3 of all NYCHA buildings…

NYCHA bust is biggest single-day bribery takedown in DOJ history, officials say — Jim Dolan | ABC 7 Eyewitness News | February 06, 2024

Based on the rate of change in quality of life metrics between 2012 and 2021, it would take roughly 320 years for Black residents in rural counties like Caddo Parish, Louisiana, to achieve parity, a new report from [McKinsey] shows.  Even in megacities like New York and San Francisco, where outcomes overall are better for Black residents, parity would take 160 years…

There are other sobering data points: only 48% of US counties reduced the racial gap in the past decade, no US county with a significant Black population has achieved parity, and the 37 that are close to it house just 0.1% of the total US Black population.

The study assumes that results for White residents will remain at today’s levels, but notes that those estimates are conservative because their conditions are likely to improve over time. 

McKinsey analyzed 25 metrics related to quality of life, including rates of poverty and food insecurity, job opportunities, life expectancy and incarceration rates across the US, from megacities to rural areas…

It Will Take Black Americans 320 Years to Catch Up to White Neighbors — Kelsey Butler | Bloomberg | February 01, 2024

The state of Black residents: The relevance of place to racial equity and outcomes — McKinsey Institute for Black Economic Mobility| February 01, 2024

Also see Issue# 83 for more about manufactured homes.

High mortgage rates, lack of supply and elevated prices of homes have made the dream of owning a house for a lot of first-time buyers out of reach. But some experts suggest that one option that could help ameliorate the challenge of affordability in the housing market—manufactured homes, which cost $129,000 on average.

These homes, which are built and then placed on a lot, cost less to build, according to a recent study from researchers at Harvard University's Joint Center for Housing Studies, which could also mean that they'd be cheaper to buy than traditional homes. The researchers point out that building a basic manufactured home could cost 35 percent less than a typical home.

"Although adding the cost of land to these homes reduces the magnitude of the cost savings, the advantage can remain substantial—particularly in areas where land costs are low," the study said.

Is This The $129,000 Solution to America's Housing Crisis? — Omar Mohammed | Newsweek | February 06, 2024

💤

• Real estate prices are sinking where short-term rentals (STRs) have been effectively banned or capped.

As L.A. continues its crackdown on Airbnb, city officials can turn toward the desert for an example — perhaps a cautionary tale — of the potential side effects of curbing the short-term rental market.  In Palm Springs, a cap on short-term rentals in specific high-demand neighborhoods has all but frozen the market in those communities…

…Activists argue Airbnbs remove affordable housing from the market. Residents complain that the influx of tourists leads to loud, late-night parties and generally takes away from a place’s neighborly ambience. Disputes between hosts and renters lead to movie-level drama and months-long courtroom clashes.  As a result, some cities are limiting short-term rentals, and each one seemingly has a different strategy…

…To be clear, caps aren’t the only thing driving down prices. The market in Palm Springs — and all of Southern California — is still nursing a hangover from the wild pandemic market. Low interest rates led to record prices in the last few years, but as interest rates climbed higher and higher, home values dipped across the board.  In addition, people simply aren’t renting as many Airbnbs in Palm Springs these days….

Palm Springs capped short-term rentals. Now some home prices are in free-fall — Jack Flemming | Los Angeles Times| January 23, 2024

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The Florida Bar is probing Miami City Attorney Victoria “Vicki” Mendez’s ties to companies involved in an alleged house-flipping scheme that targeted homes previously owned by incapacitated people or those who could no longer take care of themselves, the Miami Herald reported. Firms owned by Mendez’s mother and her husband purchased the homes at well below-market value, and then sold the properties for a profit, sometimes on the same day… 

Florida Bar Investigating Miami City Attorney Vicki Mendez — TheRealDeal | February 05, 2024

…It is the latest smudge for a city that has seen one commissioner criminally charged, a second hit with a $63 million judgment for harassing a nightclub using city cops, and the mayor facing multiple investigations. Méndez was effectively ousted from her post at City Hall in a commission vote last month that terminated her contract early. She will remain city attorney until June, making over $340,000 as the city’s second-highest paid employee…

Miami city attorney investigated by Florida Bar over ties to alleged house-flipping scheme — Sarah Blaskey | TheRealDeal | February 05, 2024

Built Environment

• Remember 15 minute cities?  See Issue #60.

Where a 15-minute city is unfeasible, turning a 40-minute city into a 35-minute city would be worthwhile, too.

There has been a lot of hype, and criticism, about the “15-minute city,” a model for mixed-use neighborhood planning where offices, schools, shops and parks are within a 15-minute walk or bike ride from one’s home….

…As researchers at the Massachusetts Institute of Technology, we had a question: Can America — the land of the free and the home of the sprawl — re-weave its urban fabric according to the 15-minute city model and achieve greater walkability? Our new study has assessed this possibility, and on Monday we published our detailed findings in the scientific journal Nature Human Behavior. By analyzing mobile-phone location data for 40 million Americans, we measured how often a neighborhood’s residents carry out essential trips within a quarter-hour radius.

First, the study quantifies an important reality: The overwhelming majority of Americans have never experienced anything resembling a 15-minute city. The median resident, we found, makes only 14% of their consumption trips within a 15-minute walking radius. We are used to a world where every errand is an epic road trip, and we hardly notice the high costs we pay in time, gasoline, parking spaces and pollution….

New Research Shows the 15-Minute City Can Work in the US — Carlo Ratti and Arianna Salazar-Miranda | Bloomberg CityLab | February 05, 2024

The 15-minute city quantified using human mobility data | Nature Human Behaviour — Abbiasov, et. al. | Nature Human Behaviour | February 05, 2024

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The sky-high graffiti covering dozens of floors of the Oceanwide Plaza development in downtown L.A., a $1 billion project that was abandoned in 2019, has captured the world’s attention. It’s created eye candy for Instagram. It’s become fodder for conversations about urban blight and foreign investment. And despite graffiti’s undeniable rise to the mainstream, it’s reignited an old debate over whether it is art or vandalism.

Inside the graffiti-covered L.A. skyscrapers that drew global attention — Kelsey Ables | Washington Post | February 08, 2024

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Impressive vegetation!

Panal Sustainable Regenerative Condominium / AYMA Arquitectura y Medio Ambiente LTDA — ArchDaily

A gargantuan redevelopment proposal by a prominent Miami developer would dramatically reshape a nearly mile-long stretch of the city’s Little River and Little Haiti neighborhoods, bringing big-box stores, a new Tri-Rail station and nearly 5,000 affordable and workforce apartments to a hardscrabble area in dire need of new housing and jobs but leery of gentrification…

Massive Miami makeover? 5,000 affordable apartments proposed for aging industrial area

— Andres Viglucci | Miami Herald | February 11, 2024 

• Worth tuning in: an interview with Jerome Powell.

With the United States’ national debt closing in on $34.2 trillion, some of the biggest figures in the world of finance have been speaking out. But few expected Federal Reserve Chairman Jerome Powell to address the issue—at least until this weekend, when Powell spoke out about the debt on CBS’ 60 Minutes Sunday. “In the long run, the U.S. is on an unsustainable fiscal path,” Powell warned… “Effectively we’re borrowing from future generations…”

Another economic hangover after the pandemic is a sharp increase in the national debt.  30 years from now it is projected to be $144 TRILLION or $1,000,000 per household.

After Jamie Dimon warns of market 'rebellion' against $34 trillion national debt, Fed's Jerome Powell says it's past time for an 'adult conversation' about unsustainable fiscal policy — Scott Pelley | CBS 60 Minutes | February 04, 2024

Jerome Powell: Full 2024 60 Minutes interview transcript — CBS 60 Minutes 2/4/24

• The SOVEREIGN DEBT DILEMMA:

The federal government's record-high national debt is set to get even bigger, reaching a massive $54 trillion by the year 2034.

"All I want to say is that it's Congress's job to do this.  If they fail to do it, we will have an economic and financial catastrophe that will be of our own making." — Janet Yellen

US government debt to top $54 trillion in next decade, CBO says — Elizabeth Schulze | ABC News | February 07, 2024

Inflation and Monetary Policy

• No cuts, yet…

The Fed kept its target rate at 5.25% to 5.5%, and might not cut it until May, Powell suggested.  Powell himself noted they are “well into restrictive territory.”

After the inflation surge of the past two years, you can’t blame the Federal Reserve for taking its time to declare victory. On Wednesday, Chair Jerome Powell acknowledged inflation by some measures is down to its 2% target. He nonetheless set a relatively high bar to cutting interest rates in response. “It’s a highly consequential decision to start the process [of cutting rates],” he told reporters Wednesday.

Fed Shouldn’t Take Too Long to Conclude Inflation Is Beaten

— Greg Ip | WSJ | January 31, 2024

A March cut is "not the most likely case," Jerome Powell said, though policymakers plan to start in-depth balance sheet talks then.

The chair acknowledged rates have probably peaked while insisting that the fight against inflation wasn't finished.

No Rush: The Bloomberg Close, Americas Edition — Emma Sanchez and Maria Jose Valero | Bloomberg | January 31, 2024

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US consumer prices jumped at the start of the year, stalling recent disinflation progress and likely delaying any Federal Reserve interest-rate cuts…

US CPI January 2024: Consumer Prices Rose by More Than Forecast — Augusta Savaria | Bloomberg | February 13, 2024

Cashing Out

• Commercial real estate (CRE) bust

Everyone has been talking about the sky falling when it comes to US commercial real estate, but they haven’t been able to point to when exactly. Now “when” may be upon us. The shakeout in the $20 trillion sector has long been delayed because no one could figure out just how much properties were worth. And few wanted to. Since the pandemic upended just how real estate is used, lenders had little incentive to get tough on borrowers squeezed by soaring interest rates and take on loans that had lost value. Transactions ground to a halt as potential sellers were unwilling to unload buildings at cut-rate prices, which meant everyone could pretend for awhile that nothing had fundamentally changed. Well the water is finally starting to recede as deals begin to pick up, revealing just how far real estate prices have fallen. How far? Some buildings are going for half price.

But bold new academic research, drawing on financial history going back to the 1890s, goes 

— David Rovella Arends | Bloomberg Evening Briefing | February 14, 2023 

• COLORADO: Green shoots of homeowner-centric legislation!  View the link above for all legislation we’re tracking for Colorado.

  1. HB24-1091 prohibits restrictions against fire-hardened building materials in community associations.

  2. HB25-1158 introduces industry-defying foreclosure protections including a $2,500 cap on attorneys’ fees.  Watch out, CAI!

  3. HB24-1152 will allow accessory dwelling units (ADUs).

Colorado homeowners’ associations granted freedom to use fire-hardened building materials — Kacie Sinton | KJCT | February 01, 2024

• HAWAII: ~60 bills (excluding ~40 cross-filed).  Let this be a lesson in legislation overload and how to accomplish less by trying too hard.

• MARYLAND: 18 bills (excluding 5 cross-filed).  View the link above for all legislation we’re tracking for Maryland.

  1. HB266 would create a “bill of rights” framework for future legislation

  2. HB280, HB281 and HB968 address assistance to pay for infrastructure repair and replacement, reserve funding and reserve study exemptions.  Maryland is currently the only state other than Florida to mandate “full funding.”

  3. HB783 would prohibit associations from prohibiting leases 6 months or longer.

FLORIDA: It’s refreshing to listen to Senator Bradley explain her monumental bill SB1178 on January 22nd, 2024 during a meeting of the Regulated Industries Committee.  Fast forward the video to around 13:15 for Senator Bradley.  Then fast forward to 24:00 to hear a homeowner from Ramblewood East.

• Also reference video from the Appropriations Committee on Agriculture, Environment and General Government at 55:30.

• Have some legislation for us to share?  Please let us know!

• View newly effective CIC-specific statutory requirements on our Legislation Page.