Tag Archives: use

Exploring Use Restrictions

Some HOA governing documents limit the use of owners’ units through use restrictions. One example: Limiting the number of overnight guests to 30 a year.

Are such rules permissible? Are they even enforceable? Here we discuss a few common use restrictions, their pros and cons, and better ways to skin the cat.

They’re Common, But Can You Enforce Them?

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Federal Housing Finance Agency Publishes Rule Regarding Capital Contributions, Membership Fees, Flip Taxes, Transfer Fees, etc.

 

The Federal Housing Finance Agency (“FHFA”) recently published a Notice of Proposed Rulemaking  directing Fannie Mae, Freddie Mac and the Federal Home Loan Bank System to regulate transfer fees paid to community associations. While the revised FHFA draft will allow community associations to continue to use deed-based transfer fees (i.e., capital contributions, membership fees, flip taxes, etc.) to fund association operations, the rule would still allow  FHFA to limit how associations use the funding raised by such fees. FHFA’s rule would ban transfer fees paid to investors, but will allow transfer fees payable to a community association. This would apply to investors only prospectively, which should mean that any existing transfer fee paid to an investor or used by an association or any purpose is still valid and enforceable.

 

Per the rule, community associations could use revenue raised by new transfer fees for very narrow purposes, and would be regulated

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FL: Synagogue ousted from condo unit

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

After a crowded, tumultuous hearing on Wednesday, Special Magistrate Carolyn Ansay ruled that Mr. Feder’s use of the spare condo as a synagogue violated the zoning code. She gave him 30 days to end that use or face a $100 a day fine.
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