Condo Media - May 2011 - 48

OPERATIONS

by Gary M. Daddario, Esq.

The Law Lowdown
The CAI National Law Conference Was Tops … Now for the Bottom Line
arlier this year, I had the privilege of attending the CAI National Law Conference in Las Vegas. This year’s conference was well attended by various types of members of CAI, including condominium attorneys and others in our industry from all over the United States. CAI-NE was, in my humble opinion, well represented at the conference with no less than 14 of our attorneys present and no less than four of those serving as conference speakers. Once again, I had the opportunity to “compare notes” with condominium attorneys from other states including New Hampshire, Rhode Island, Florida, Hawaii, Colorado and more. It is extremely helpful to gain insight into the trends and practices observed throughout the country. In some cases, this information serves as a prediction of what we will experience here in New England. In addition, we all had the opportunity to attend many lectures on a variety of topics. Below is a sample of some of the lectures I attended and the “bottom line” lessons from them. Bottom Line: Whereas last year there was a trend toward courts interpreting the condominium documents strictly against the association, the current trend is in another direction. Recent decisions reveal that courts are now requiring unit owners to observe the regulations of the communities they have chosen to join. input has served to educate legislators regarding the operations and needs of associations.

FHA Condominium Update: One Year Later
This seminar began with a review of some of last year’s sweeping FHA regulation changes that have impacted condominiums. Although some practitioners have reported difficulties (and even inconsistencies), the good news is that most find condominium units still being transferred. In further good news, CAI has and continues to work with the FHA on shaping the regulations to serve their intended purpose without imposing undue and unwarranted burdens on associations. Issues remain concerning topics such as transfer fees and the proper impact of affordable housing units. Practitioners were provided with some helpful insight in that FHA Reviewers are no longer authorized to seek legal opinions. Therefore, attorneys assisting associations with the FHA approval process should attach information to the application, as necessary, to educate the reviewer relative to any of the association’s potential compliance issues. Bottom Line: FHA and CAI continue to communicate regarding the regulations in an effort to reach the desired result relative to financial controls and a fair scheme relative to association approval processing. By demonstrating compliance with FHA Memoranda, applicable law and the like (and by providing copies of the relevant documents), attorneys may cause the FHA Reviewers to feel comfortable providing approvals.

National Legislative Update
This lecture, another annual staple of the conference, provided an overview of the meaningful legislative changes that have occurred or are being considered across the country. Again, particular reference to pieces of legislation is beyond the scope of this article. It does appear that consideration of particular issues is occurring simultaneously in different areas of the country. These issues include: property manager licensing (passed in four states and being discussed in nine others); priority liens (passed in some form in three states and considered in at least one other); transfer fees (at issue in at least four states); uniform property acts (considered in at least seven states); FHA changes (see more on that below); and data security (with some form of policy under consideration or passed in 30 states). Bottom Line: Everyone involved with condominiums and association communities benefits from CAI’s strong efforts and attention to legislative proposals on both national and local levels. The CAI Legislative Action Committees track relevant legislation and, more importantly, serve as the voice for our industry. In many instances, CAI’s

National Case Law Update
This lecture, an annual staple for the conference, provided an overview of the meaningful condominium-related cases decided across the country this year. A review of the cases would be beyond the scope of this article. However, a trend among the cases revealed that courts are now assisting associations when it comes to “reeling in” unit owner misconduct and are requiring unit owners to acknowledge and comply with the terms of their bargain in electing to become a member of an association.

CONDO MEDIA • MAY 2011

Condo Media - May 2011

Table of Contents for the Digital Edition of Condo Media - May 2011