Following are public policy positions CAI has supported:
AGE RESTRICTED HOUSING DEVELOPMENTS
CAI supports the provision of diverse housing opportunities for all age groups within our
society; the development of community associations which are specifically designed for
"seniors;" and a balance of housing allowing the separation of different age
groups, if a group elects to be separated.
ALTERNATIVE DISPUTE RESOLUTION MECHANISMS
CAI recognizes the need for and supports the use of alternative dispute resolution
mechanisms to resolve disputes arising in community associations in appropriate cases.
ASSESSMENT COLLECTION FROM OWNERS IN BANKRUPTCY
CAI supports an amendment to the United States Bankruptcy Code to provide for the payment
of post-petition common expense assessments by debtors owning property in community
associations.
ASSESSMENT INCREASE LIMITATIONS
CAI supports the elimination of any requirement that community association documents
prohibit the increase of assessments by the Board of Directors above a fixed percentage
without approval of a vote of owners.
CHILD CARE FACILITIES IN COMMUNITY ASSOCIATIONS
CAI recognizes and supports the rights of common-interest communities to regulate the
nature of commercial activities within their residential complex, including the option to
choose whether or not individual residences can be used as child care facilities.
COMMUNITY ASSOCIATION BUDGETS AND RESERVES
CAI encourages all community associations to adopt and use a financial planning and budget
process which accurately reflects projected annual operating costs and long-term capital
or major expenses resulting in a balanced budget. The initial budget by the developer and
developer-controlled association board should be prepared to assure accurate estimation of
potential operating costs and reserves. CAI also supports full and open disclosure to
owners and the opportunity for participation by owners in the development of the budget.
COMMUNITY ASSOCIATION MANAGER CREDENTIALING
CAI encourages and supports the certification of community association managers and others
who supervise, set policy or direct the operation of a community association management
company. CAI opposes the licensing of community association managers as real estate agents
or brokers.
COMMUNITY ASSOCIATION MEMBERS' AND RESIDENTS BILL OF RIGHTS
CAI supports a balance of the rights of an individual owner in a community association
with the need for effective management of the affairs of the association for the benefit
of all the owners. Reasonable association procedures which empower the board of directors
and staff of the community association to perform their obligations efficiently must take
into account the rights of an individual owner to privacy, enjoyment of his or her home
and full participation in the community association.
COMMUNITY ASSOCIATION TAXATION
CAI supports the elimination of the residential requirements of Code Section 528; the
gross revenue of 60% test of Code Section 528; the 90% expenditure test of Code Section
528; the flat 30% tax rate of Code Section 528 and replacement with an average marginal
tax rate, paid by individual taxpayers.
COOPERATIVES (COMPARABLE INCOME TAX RELIEF)
CAI supports the principle that residential cooperative shareholders should be afforded
income tax relief comparable to that available to owners of other forms of housing and
that Congress should take such steps as may be necessary to accomplish this feat.
DISCONTINUANCE OF FHA REGULATORY AGREEMENT
CAI urges that the U.S. Department of Housing and Urban Development discontinue the
effectiveness of all regulatory agreements with existing FHA approved condominium
projects.
EFFECTIVE COLLECTION OF COMMUNITY ASSOCIATION ASSESSMENTS
CAI supports effective, fair and reasonable collection methods, including lien rights and
due process protections, and opposes government limitations on their efforts. CAI also
supports reasonable procedures to accommodate unit owners experiencing temporary financial
difficulties.
ENVIRONMENTAL QUALITY
CAI strongly supports protection of the health and well-being of all individuals residing
or working in common-interest communities by increasing sensitivity to environmental
quality; and environmental quality in common-interest communities and remediation of
environmental pollution, including harmful substances contained in building materials and
landfills.
FAIR HOUSING
CAI supports upholding the enforceability of local law or recorded covenants, conditions
or restrictions which are impaired by retrospective legislation tending to limit
residential restrictions not based on raced, creed, color, sex, national origin, familial
status or handicap.
FEDERAL HOME LOAN MORTGAGE CORPORATION PROPOSED EARTHQUAKE REQUIREMENTS FOR CERTAIN
CONDOMINIUMS IN CALIFORNIA
CAI supports a one-year delay in implementation of the Federal Home Loan Mortgage
Corporation (Freddie Mac) Bulletin No. 95-2 and the appointment of an industry task force
to develop better ways to protect Freddie Mac's interests without adverse impact on the
availability of financing for condominium housing.
FINANCING AVAILABILITY FOR COMMUNITY ASSOCIATION UNITS OR LOTS
CAI urges the promotion by federal lending-related agencies and the secondary market to
promote the availability of adequate financing programs for community association housing.
CAI supports the development of consistent national legal and underwriting standards for
community associations, and reciprocal approval of community associations by federal
agencies and the secondary mortgage market and urges federal lending-related agencies and
the secondary market to promote the availability of financing for community association
housing.
GOVERNMENT REGULATION OF COMMUNITY ASSOCIATIONS
CAI supports effective state legislation, when it is deemed necessary for consumer
protection, conversion limitations, protections for ongoing operations or other additions
to existing statutes or common law, to ensure that community association housing is
developed and maintained consistent with legitimate public policy objectives and standards
that protect individual consumers, balancing the legitimate rights of the development
industry. Local legislation concerning the creation or governance of community
associations is antithetical to a balanced, well-considered weighing of all issues and
interests affecting community associations, encourages a patchwork of regulations within
an individual state and is, therefore, better dealt with at the state level.
HANDICAPPED HOUSING PROVISIONS
CAI recognizes the importance of providing adequate available housing for all members of
society, but believes that undue economic burden must not be imposed on others to support
handicapped housing. Since single-family residents are excluded from the Fair Housing Act,
CAI believes it appropriate to exclude community associations, as they are composed of
single-family residences.
HOMEOWNER INVOLVEMENT IN COMMUNITY ASSOCIATIONS
CAI believes in direct homeowner involvement and participation in community associations
and should be encouraged throughout the developmental process and operational phases of
community associations.
LIABILITY OF COMMUNITY ASSOCIATION VOLUNTEERS
CAI supports legislative protections against unwarranted legal liability for volunteers
serving as members of a community association board of directors or committee, to enable
them to make responsible judgments without fear of personal loss interfering with the
judgment or decision making process. CAI further supports indemnification of community
association volunteers and the provision of directors and officers insurance coverage as a
common expense.
LIMITED LIEN PRIORITY FOR COMMUNITY ASSOCIATION ASSESSMENTS
CAI supports a six-month priority lien over the first mortgage for regularly paid
assessments and modification of any laws restricting lending institutions from making
loans which are subject to the community association assessment lien priority.
LOCAL TAXATION AND PUBLIC SERVICES FOR COMMUNITY ASSOCIATIONS
CAI believes that common interest communities should not be taxed for municipal services
not provided. Separate assessment and taxation of common property is unjust double
taxation. Homeowners should be allowed to deduct association assessments attributable to
the performance of public functions.
MANDATORY ACCESS BY CABLE TELEVISION FRANCHISEES TO COMMUNITY ASSOCIATION PROPERTY
CAI supports a community association's right to exercise their bargaining powers with a
variety of providers of television signal services; the right to control access by all
providers of CATV over their common elements, and to control the appearance and quality of
installations; and believes that CATV should be regulated to the minimum extent necessary
to satisfy the public good, without limiting the benefits of open competition.
RENTERS IN COMMUNITY ASSOCIATIONS
CAI supports a balanced approach to the treatment of tenants in community associations,
while protecting traditional property rights, including reasonable regulation of transient
occupancy, tenant compliance with association standards, and the integration of tenants
into the community on an equal basis.
RULES DEVELOPMENT AND ENFORCEMENT
CAI supports legally sound, fair and equitable rules development and enforcement
procedures in community associations.
SUPPORT FOR THE UNIFORM ACTS
CAI supports and recommends consideration and adoption of the one or more of the Uniform
Community Association Acts by all states. In those states where it is not appropriate,
practical or possible to adopt one or more of these uniform acts in their entirety, the
Institute supports and recommends consideration of appropriate portions of these laws.
TRANSITION OF COMMUNITY ASSOCIATION CONTROL FROM THE DEVELOPER TO HOMEOWNERS
CAI recognizes that successful transition is the responsibility of the developer, through
continuing training, education programs, and homeowner involvement in association
governance.
VETERANS ADMINISTRATION GUARANTEEING LOANS SECURED BY SHARES OF STOCK IN A HOUSING
COOPERATIVE
CAI supports and urges that Congress amend 38 U.S.C. 1810, to allow the same veterans
benefits to a housing cooperative purchaser as it does to a purchaser of condominium
housing.
