FHA Condo Certification Rule Awaits Review by Trump Administration

The Federal Housing Administration (FHA) recently issued its long-awaited proposed rule regarding standards for condominiums in which individual unit owners are eligible to obtain FHA-insured loans.  However, final action awaits review by new housing agency officials in the Trump Administration.

Mortgages backed by the FHA allow borrowers to make a lower down payment and have less stringent financial qualification criteria than conventional  mortgages. Of the estimated 150,000 condominium nationwide, fewer than 10,000 are certified for FHA-insured loans. Continue reading

Will Community Associations Get Trumped?

The election of Donald Trump as the President of the United States ushers in uncertainty for a variety of federal housing policies which affect the financing and governance of homes in community associations–condominiums, homeowner associations and housing cooperatives.  During the election campaign, Trump said little about the federal role in promoting homeownership.

But, his support for reduced government regulation and the 2016 Republican Platform provide clues about how a Trump Administration may impact community associations. Continue reading

Federal Advocacy Summit Tackles Condo and HOA Legislation

Tom Schild recently participated in the Federal Advocacy Summit sponsored by the Community Associations Institute (CAI) in Washington, D.C.  Community association attorneys, managers and homeowners from around the country gathered to learn about federal legislative and regulatory issues with direct financial impact on condos, homeowner associations and housing co-operatives….and carry the message to Capitol Hill.

Among the hot topics was legislation to provide federal disaster relief assistance for the clean up and repair of community association common areas.  This CAI legislative initiative was introduced in the House of Representatives at the end of October, 2015.

As part of the proposed Housing Opportunity through Modernization Act, Congress is also considering changes to the Federal Housing Administration (FHA) standards for condominium project approval to make it easier for condominium associations to obtain and maintain FHA-approval  so condo owners and purchasers can get FHA-insured mortgages.

On the CAI hit list is legislation introduced in both the House and Senate which would require the Federal Communications Commission to invalidate private restrictive covenants in condos and HOAs which prohibit or interfere with amateur radio antennas.

On the regulatory front, CAI is opposed to the actions of the Federal Housing Finance Agency (FHFA) seeking to invalidate state laws which recognize a priory lien for condo and HOA assessments.  FHFA is the government agency which now operates Fannie Mae and Freddie Mac.

With all seats in the House of Representatives and one-third of the Senate seats up for election in 2016,  now is the perfect time for community association leaders and residents to let their congressional representatives know the impact these federal issues have on the financial stability of condominiums, homeowner associations and co-operatives.

POSTED BY:  Thomas Schild Law Group, LLC

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