LAC Minutes
May 11, 2004

MINUTES
FOR
COMMUNITY ASSOCIATION INSTITUTE
LEGISLATIVE ACTION COMMITTEE ("LAC")
DATED: 5/11/04

Delegates present: Rich Thompson, Denise Bower, Karna Gustafson, Barbara Kanz,
Rich Vial, David Schwindt, Cheryl Brendle, Jack Herring, George Carter, Dominic Colletta and Harriett Heisey

A. Treasurer's Report. David Schwindt reported about approximately $3,000 in checking. We discussed voluntary versus mandatory contribution as part of the CAI dues. We are required to send quarterly reports to Andy Krakowski at CAI National. David Schwindt was instructed to do so.

B. Double Taxation. We discussed whether the LAC would be interested in pursuing the issue of owners in an HOA who may be paying twice for services, once in their HOA dues and again in their property taxes. Examples included lights, roadways and snow removal. It was moved by Cheryl Brendle that the LAC should look into this issue. It was seconded by David Schwindt. Discussion followed that Cheryl Brendle will look into it with the assistance of Rich Thompson. Denise Bower advised us that we had received material from CAI National several months ago via e-mail. All delegates present other than Karna Gustafson voted in favor. Karna Gustafson voted against.

C. Manager Licensing. It was reported that OWCAM is interested in being the entity credentialing community managers. It would like to require educational standards and certification. OWCAM is not currently pursuing legislation on licensing. It has developed ethics and standards for its own members.

D. Lien Priority. Rich Vial reported that 18 states currently have absolute priority and 7 states have modified priority. Rich Vial is interested in pursuing legislation in Oregon providing HOAs with absolute lien priority. Denise Bower advised that we would need approval through CAI National to proceed. Rich Vial will talk to Dick Anderson, President of OMBA and head of the Fannie Mae regionally. There is a consensus among the delegates to move forward with this issue.

E. Resale Disclosure. There was discussion regarding doing a resale certificate versus adding additional items to Chapter 105 for disclosure. Rich Thompson will work on concepts and bring it back to delegates.

F. Maintenance Turnover Book/Cost. George Carter discussed the annual maintenance plan book. The idea would be that the declarant come up with a plan that has items that the association is required to maintain, product data and who is obligated to pay for what. The book would also discuss annual inspections. George Carter is to come back with more of a definite idea for the delegates to vote on whether to pursue.

G. Condominium Working Group. Rich Vial and Barbara Kanz discussed that the condominium working group was looking into making a default provision on owners versus association responsibility for windows and window frames. There was no further discussion from LAC on how we wish to proceed or respond.