HOAleader.com - Tip of the Week - November 1, 2019
Published: Fri, 11/01/19
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Getting Your Condo Association FHA-Certified Just Got Easier
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In this week's tip, we report on what many consider good news for condo associations and buyers looking for affordable housing.
On Oct. 15, new federal rules went into effect that industry players contend will open the door to more buyers being able to climb onto the housing ladder.
The new rules, finalized Aug. 16, 2019, govern the Federal Housing Administration's program for approving condominiums for loans backed by the federal government. The new rule even allows for single condo units in projects that haven't received approval to be covered, if they meet certain conditions — a huge change.
FHA backing of condo loans can be confusing. So here's a quick overview, building on an article we published in 2016. The FHA guarantees home loans offered through conventional lenders. Those loans are typically easier for buyers to secure because they often require lower down payments and ease credit-score minimums for buyers.
However, condo associations need to become certified for FHA financing, or buyers seeking those easier lending terms — think often first-time buyers — won't be able to purchase in those condo communities.
In the past, the FHA's approval process for condos has been a bear. REALTORS® and other industry groups have complained that the process is complicated and cumbersome — with the result being that buyers can be shut out of the condo market.
The worst part, they argue, is that condos are often more affordable than single-family homes. So, they argue, the housing affordability crunch so many experts are lamenting today has been exacerbated by this seemingly obscure rule.
A number of provisions in the new rule should make it easier for condo associations to become certified. Get a summary of the changes, plus our experts' thoughts on why this rule is welcome news in their condo association world, in our new article: https://www.hoaleader.com/members/4006.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Condo/HOA Board Members: 4 Steps for Handling Your Old Records
An HOAleader.com reader asks, "I've got almost four years of board packets I keep in my home. I've been on the board that long. Since the hard copy is available online, I'd like to turn my oldest packets in for destruction; they're no good to me and wasting a lot of space!"
Click here to read full article:
https://www.hoaleader.com/members/Condo-HOA-Board-Members-4-Steps-for-Handling-Your-Old-Records.cfm
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License Plate Cameras in Your Condo/HOA: Good Idea or Risky Business?
HOAs in Alabama have installed devices that capture images of auto license plates as the cars enter and exit the community. Here, our experts discuss whether this is wise or whether it might make the association be taking on more liability for security than is required by law.
Click here to read full article:
https://www.hoaleader.com/members/License-Plate-Cameras-in-Your-Condo-HOA-Good-Idea-or-Risky-Business.cfm
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By All Means, Get Your Condo/HOA Attorney Involved in Amendments
An HOAleader.com reader asks a question that will give community association lawyers the vapors: "Our HOA is in the process of totally revamping our declarations and covenants. Our question is: Do we need to have our attorney draw up these documents and, if not, would the documents be valid without the attorney drafting them?"
Click here to read full article:
https://www.hoaleader.com/members/By-All-Means-Get-Your-CondoHOA-Attorney-Involved-in-Amendments.cfm
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HOA Driveways: Who Maintains Them?
An HOAleader.com reader writes, "Each home (we have free-standing homes — not a condo or duplex) has a driveway, leading into the garage for each individual home. In my opinion, a driveway leading into a garage for that specific home isn't common property but rather private property for each individual homeowner. I believe each homeowner is responsible for the maintenance and upkeep of their own driveway."
Click here to read full article:
https://www.hoaleader.com/members/HOA-Driveways-Who-Maintains-Them.cfm
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Can Condos/HOAs Undo a Decision to Grandfather?
An HOAleader.com reader writes, "Can grandfathering be reversed? Our HOA board decided on its own to grandfather deed restriction violators. Now we're faced with garbage for an eternity. What can be done? Can a new board reverse this awful decision? We want to allow the current homeowners to be grandfathered but not new owners."
Click here to read full article:
https://www.hoaleader.com/members/Can-Condos-HOAs-Undo-Decision-Grandfather.cfm
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