Tag Archives: transfer

FHA Reignites Transfer Fee Battle

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...

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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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Toxic Remains

No SmokingToxic Remains

Smoke Free is Catching Fire

Every day, more public spaces become off limits to smokers.  Some smokers-if they’re lucky-can find designated outdoor smoking areas.  So we’ve nearly eliminated the problem of secondhand smoke.  Great.  Except now we have to contend with third hand smoke.  What?

WHAT IS THIRD HAND SMOKE?

The odor of a smoker’s most recent cigarette can remain for a few minutes or much longer.  It lingers because chemicals emitted in the smoke have settled on the person’s clothes and hair.  Those chemicals transfer from the smoker to upholstery, draperies, carpeting and rugs, wallpaper, lampshades, wood cabinetry and other furnishings.  In any room or vehicle, or even elevators and stairwells, where smokers enter, reside, move about or sit regularly, the amount of chemical residue from their just-smoked cigarettes or other nicotine products accumulates.  This residue, which can adhere for months to almost every surface, is what scientists call third-hand smoke.  Managers of communities that have party rooms, lobbies and other enclosed spaces with designated-or even formerly designated-smoking areas should be aware that third-hand smoke can be lethal. 

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Private Transfer Fees Update

 

The Federal Housing Finance Agency (FHFA) released a Proposed Rule on February 8, 2010, concerning the hotly contested ban on private transfer fees.  The proposed rule would prohibit Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from buying mortgages on properties encumbered by private transfer fee covenants.  Community Association Institute defines a private transfer fee as “any fee or payment required at time of sale of a property by a deed or covenant restriction.”  

Many associations depend on these fees, typically a percentage of the sales price of homes and condos, to pay for association improvements or maintenance.  The FHFA deems these covenants to be “adverse to the liquidity and stability of the housing finance market, and to financial safety and soundness.” 

However, the FHFA proposes to exempt private transfer fees paid to homeowners’ associations, condo cooperatives, and certain tax-exempt organizations that rely on these fees

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