Tag Archives: benefit

Transfer Fees Victory

The Federal Housing Finance Agency in March issued its long awaited final rule on transfer fees, and it’s a big win for community associations. 

FHFA initially proposed a regulation that would have banned federally backed mortgages for property in a community association with a deed-based transfer fee.  As originally drafted, the proposed rule would have cut off nearly all mortgage funding for the 11 million housing units, roughly half of all community association housing, that have existing deed-based transfer fees.  Over the past two years, CAI members worked diligently to gather data on transfer fees, submitted comments to FHFA and brought the issue to the attention of key lawmakers.

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On the Board

Is it dissonance or dissidence? In the beginning, it can be hard to tell. When healthy dialog turns into personal insults, innuendo, gossip, and disruptive arguments, board meetings can get off message and contentious. Left unabated, the board fractures, no one is satisfied and the community suffers. How can a board deal with a disagreeable board member? Each situation is unique, so specific approaches will differ. However, there are a few helpful tactics boards can use.

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FHFA ISSUES MAJOR REVISIONS TO DEED-BASED TRANSFER FEE PROPOSAL

The Federal Housing Finance Agency (FHFA) has issued a revised draft of their proposed regulation on deed-based transfer fees. Their revisions reflect the comments expressed by CAI and its members. CAI expressed strong concerns over FHFA’s assertion that such fees do not benefit community associations. The new draft proposal will be open for public comment for 60 days and CAI will follow up with a full analysis and sample comments.

 

In August of 2010, FHFA issued draft guidance which would have prohibited Fannie Mae and other mortgage finance entities from purchasing any mortgage for property with a deed-based transfer fee. FHFA included deed-based transfer fees charged community associations. Since nearly half of all community associations charge such fess, the proposal, if adopted, would have rendered up to 11 million homes in community associations unmarketable by cutting off most mortgage financing.

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