CAI-NJ Sep.2016

S E P T E M B E R , 2 0 1 6

hen our property manager suggested that we

join CAI, we did. I was aware of the work-

shop opportunities available to our volunteer

leaders, the advice available on the web site, and the net-

working opportunities to meet with other volunteer leaders

around the state. What I did not consider were the many

important roles and functions the CAI-NJ’s Legislative Action

Committee (LAC) serves.

Here is a quick quiz to test if you understand the impor-

tance of LAC to residents of New Jersey’s common interest

communities.

True or False –

A “Super Lien” is the healthiest

choice at the Outback Steakhouse.

False —

A “super lien’ gives a condominium associ-

ation (but not an HOA) in NJ higher priority for unpaid

assessments than even the first-mortgage holder, placing

the interest of the association in front of the first mortgage.

This gives lenders an incentive to pay off past assessments;

and, when the lender does foreclose, they must pay off the

association’s lien first. Unfortunately, in 2015 the Federal

Home Finance Authority (FHFA) proposed regulations to

void super liens in order to protect the lenders. The LAC is

fighting this and has urged CAI members to ask our mem-

bers of congress to fight this

What the Heck is LAC, and Why Should I Care?

By Paul M. Raetsch, President

Horizons at Woods Landing HOA

True or False –

You can easily take action to

stop or change laws and regulations.

True —

Sending letters to urge legislators is simply a click

away thanks to LAC. The LAC is urging our members of

congress to co-sponsor the HOME bill. If passed it will give

members of common interest communities federal income tax

credits for association fees. Each of us can help convince our

federal legislators to cosponsor the bill by using this simple CAI

link:

Please Co-Sponsor the HOME Act

True or False –

There is little your township can

do to deal with foreclosed and abandoned

properties.

False —

The LAC was successful in getting legislation

enacted (Lender Accountability for Property Maintenance)

A Quick Quiz for Board

Members of Common

Interest Communities

Paul Raetsch spent most of his career with the U.S.

Department of Commerce, Economic Development

Administration. He retired in 2007, after serving eight years

as Regional Director of the Philadelphia Regional Office.

He is President of the Horizons at Woods Landing

Home Owners Association, and has been a Director of

the Northeast Pennsylvania Alliance (NEPA), Workforce

Wayne, Lacawac Foundation, and the Lakeland Colony

Corporation HOA.

Courtesy CAI-NJ.