The Federal Housing Administration recently announced plans to begin disqualifying condominium associations from FHA financing if an association charges a deed-based transfer fee at the time of sale. This puts FHA at odds with the Federal Housing Finance Agency, which earlier this year determined that such fees benefit community associations...
Q: I read your article in the Charlotte Observer about HOAs being nonprofit corporations and the rights of members to inspect the HOA’s records. Where can I find all of the information that you referred to in your column?
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.
The rapid growth in community associations in the past decade has prompted equally dramatic increases in the number of people entering the management field. Some are more qualified than others.
Some take classes and pass certification exams to help them guide the communities they manage. But not every person applying for a manager’s position does that.
In fact, most states have no basic requirement for individuals who decide to become community managers. A recent spate of high-profile embezzlement cases has attracted the attention of state legislators, who are struggling to ensure that community managers have at least a basic knowledge of their responsibilities.