Tag Archives: program™

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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CAI Calls on FHA for Stakeholder Input, Transparency in Condo Guidelines

Community Association Institute has reached out to the leadership of FHA to express concern over continued problems and mismanagement of the condominium insurance program. The program requires condo associations to get FHA approval for the entire association in order for any buyer to qualify for FHA financing to purchase a condominium unit. As FHA’s share of condominium mortgages has exploded during the housing crisis from less than 5% to 30% of all mortgages, sound underwriting guidelines and administration are critical to ensure appropriate qualification criteria are adopted. To date, FHA has continued to issue guidance with no public notice or stakeholder input. The result is an increasingly troubled program that is needlessly disqualifying healthy condominium associations and burdening homeowners with added compliance costs.

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How to Fund HOA Improvements

What can a board do if its building is faced with extensive capital work while recovering from the real estate slump of the early 1990s? Assessments are unpopular and reserves are low. There’s a desire to have construction operations completed as quickly as possible, but an aversion to parting with too much money at one time. One way to solve this dilemma is to phase in the capital programs over an extended time. Undertaking construction in distinct stages offers many advantages as well as potential pitfalls. Armed with the proper information, however, the board can organize the building’s construction into phases that best suit their purposes.

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FHA Regulation Update

Community Association Institute Members Meet with FHA to Discuss Condominiums On January 7th 2011, a delegation of CAI members met with policymakers at the Federal Housing Administration (FHA), presenting the agency with practical difficulties condominium associations face when qualifying for FHA’s condominium mortgage insurance program. CAI’s member delegation focused on three problem areas that are preventing homeowners in many condominium associations from using FHA programs: 

Deed Restrictions on Investor-Owned Units & Owner Occupancy Requirements Lease Term Restrictions and Room Occupancy Limits Restrictions on Condominiums with Affordable Housing Units

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