Jean Bestafka, Renaissance at Manchester
Vice-Chair, Legislative Action Committee
The Community Associations Institute, through the Legislative Action Committee, proposes, monitors and fights for legislation to protect all of our communities as well as opposing legislation that would diminish our ability to operate.
We also fight for our communities on a national level.
By the time you read this, nine members of the New Jersey Legislative Action Committee, as well as our chapter’s Executive Director, Lisa Hibbs, will participate with individuals from 20 states in a summit in Washington, D.C. on October 28th and 29th; the purpose of this summit is to reach out to our federal senators, representatives and regulatory officials to discuss serious issues that affect our associations. Below are some of the issues that will be discussed:
National Flood Insurance Program
The Biggert-Waters Flood Insurance Reform Act requires a five (5) year transition to actuarially sound premiums for federal flood insurance policies and updates flood insurance rate maps. Policyholders whose premiums do not reflect the full actuarial risk rate will see premium increases of 20 percent per year until reaching a full risk premium. Updated flood maps are resulting in expanded flood zones where residents with a mortgage are generally required to purchase flood insurance. CAI’s public policy on the National Flood Insurance Program generally calls for actuarially sound premiums for flood insurance policies.
Disaster Assistance for Community Associations
Immediately prior to the August congressional state work period, Representative Steve Israel and Senators Schumer and Gillibrand introduced legislation to allow condominium
associations and housing cooperatives to use FEMA funds made available under the
Individuals and Households Assistance program for repairs to common areas. CAI has issued a member alert in support of the Israel legislation, andCAI launched an August Advocacy campaign, urging members to meet with federal elected officials while they are in their home states and districts in support of fairness in disaster assistance.
FHA Reverse Mortgage (HECM) Reform
HECM reform legislation was passed by Congress in July, and FHA has moved quickly to implement reforms. On September 3rd, FHA released two mortgagee letters, ML 13-27 and ML 13-28, that make substantial changes to the HECM program. The changes are directed at ensuring HECM borrowers have the ability to pay mortgage related obligations such as taxes, insurance premiums and association assessments that are required to maintain ownership of their property. FHA also has released a new principal limit factors schedule that reduces the maximum amount of equity a HECM borrower may draw from their property.
