Tag Archives: leasing

New guidelines in place for FHA-backed condo loans

Michael HunterMany homes today are purchased using FHA-backed mortgage loans. One recent estimate is that at least 30 percent of condo purchases are made with such loans.

To qualify for FHA-backed loans, condominium projects must be approved by the FHA based upon specific guidelines. Those guidelines have been in flux for many months, and the FHA just issued comprehensive new guidelines June 30. Some of the notable provisions:

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FHA Issues Waiver on Leasing Restrictions

News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network

Leasing restrictions have been one area of the FHA condominium guidelines that has caused problems for associations seeking to get FHA approvals. CAI has brought this issue to FHA’s attention and has petitioned FHA to review these criteria. On March 18, 2011, FHA issued a waiver that will provide greater flexibility on leasing restrictions under the FHA condominium insurance program. This means that many condominium associations whose FHA approval was rejected due to rental restrictions may now qualify under the FHA waiver
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Leasing & You

Many lawsuits challenging community associations’ efforts to enact or enforce rental restrictions don’t do very well in court. In fact, courts have usually upheld such lease restrictions – including limits on lease terms, occupancy and usage as well as outright bans.

The problems usually arise when governing documents are amended and owners find they can no longer rent their units, or can’t rent them for fewer than 12 months or rent them to five co-eds. To the uninformed owner caught short by a covenant amendment, the prevailing opinion is that, when you bought the home, your governing documents permitted such changes. In other words, owners should know that documents – and the activities they allow – can change.

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FL: Pelican Bay’s trams go solar

News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network

The Pelican Bay Foundation this week started leasing 10 solar/electric trams for the North Naples community’s residents, guests and employees.
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