CAI-NJ Sep.2016

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

A Quick Quiz for Board Members of Common Interest Communities

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By Paul M. Raetsch, President Horizons at Woods Landing HOA

W 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. 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 True or False – A “Super Lien” is the healthiest choice at the Outback Steakhouse.

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)

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.

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