Condo Media - April 2010 - (Page 48)

FEATURE by Gary M. Daddario, Esq. Law Conference Was Tops … Now for the Bottom Line CAI National I had the privilege of attending my first CAI National Law Conference, which was held from January 21 to 23 in Tucson, Ariz. The conference was well attended by members, condominium attorneys and other industry professionals from all over the United States. I had the opportunity to “compare notes” with condominium attorneys from New Hampshire, Georgia, Ohio, California, Florida and Hawaii, among others. We were able to share our views and information on the “hot topics”, trends, cases and solutions for handling various condominium issues. In addition, we all had the opportunity to attend many lectures on a variety of topics. documents of the associations in question. Courts are seeking to enforce the documents as written. National Legislative Update An overview of the legislative changes that have occurred or are being considered across the country, many particular references to pieces of legislation were discussed. It does appear that consideration of finances, tenants, property management licensing and environmental issues are common. Bottom Line: Locally, we have the benefit of CAI’s Legislative Action Committees (LAC) in Maine, Massachusetts, Rhode Island and Vermont. The LACs track legislation affecting condominiums and, where necessary, take action to protect the rights of associations. Note that a recent example would be the quick action taken by the Massachusetts LAC, which resulted in condominiums in the Commonwealth being spared from filing corporate tax returns. National Case Law Update This program provided an overview of the meaningful condominium-related cases that have been decided across the country. Though some are humorous, even a brief recitation of the individual cases would be beyond the scope of this article. Bottom Line: Litigation against condominiums, possibly as a side effect of the economy, is increasing. Courts are taking a practical approach to complex issues and consulting the constituent 48 CONDO MEDIA • APRIL 2010 Mortgage Guideline Changes A presentation of the many and significant changes to the mortgage guide- lines of Fannie Mae and Freddie Mac, as well as the changes to the guidelines relative to mortgage insurance through FHA. These entities currently account for approximately 30 percent of the mortgage market and, as the economy continues to struggle, this percentage could increase. Condominiums must now receive project approval in order for units to be eligible for these types of mortgages/mortgage insurance and project approval requires compliance with a wide variety of requirements relating to the units, the status of construction, unit ownership and association finances, including the budget and the reserves. Project approval also will demand compliance with insurance requirements and a letter from legal counsel that will issue after a review of the association’s status as to compliance with law, both as pertains to the terms of the constituent documents and in operation of the condominium. Certain financial issues or the existence of litigation involving the condominium would trigger more substantial review. Bottom Line: The changes took effect on Feb. 1, 2010 and, absent project approval, render condominium units ineligible for a large

Table of Contents for the Digital Edition of Condo Media - April 2010

Condo Media - April 2010
Table of Contents
From the CED’s Desk
President’s Message
CAI News
CAI Regional News
Asked & Answered
Homeowner’s Corner
Risk Management
Rising Fears
Vendor Spotlight
Industry Perspective
CAI National Law Conference Was Tops … Now for the Bottom Line
.2010 CAI-NE Insurance & Restoration Directory
Advertisers Index
Classified Service Directory

Condo Media - April 2010