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Regulatory Alert – FHFA Regulation Sample Comment

On February 8, 2011, the Federal Housing Finance Agency (FHFA) 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. FHFA requests comment and opinions on its proposed rule. This revised draft includes many of the changes CAI and its members requested. While the revised FHFA draft will allow community associations to continue to use deed-based transfer fees to fund association operations, FHFA is seeking to limit how associations use the funding raised by such fees. You can view our updated FAQ at this link

We need your help to submit comments from your company, association or firm. CAI members’ strong reaction on the first set of comments was critical in convincing FHFA to revise their draft language to allow community association transfer fees. Your efforts in submitting another comment letter will help us ensure that we can protect association finances as FHFA finalizes its rule.

What FHFA is Doing

  • FHFA is banning transfer fees paid to investors, but will allow transfer fees payable to a community association. CAI supports banning investor transfer fees and supports FHFA’s decision to exempt transfer fees used by community associations.
  • FHFA will enforce the investor transfer fee ban prospectively. This means any existing transfer fee—investor or association—used for any purpose is still valid and enforceable.
  • FHFA will LIMIT the use of new transfer fees by community associations by allowing revenue raised by new transfer fees to be used only for very narrow purposes and by regulating how associations with new transfer fees manage non-resident use of common property or elements.

What CAI is Doing

CAI is submitting public comments to FHFA on behalf of homeowners and their community associations. You can view an article and link to those comments here. These comments tell FHFA that CAI supports banning investor transfer fees, but that FHFA should NOT interfere in the day-to-day operations of community associations.

CAI is also meeting with key Members of Congress and U.S. Senators to let them know (1) what FHFA is proposing; (2) what FHFA is doing right; and (3) what FHFA is getting wrong.

What You Can Do

CAI is providing sample comments that you and your association can send to FHFA. The attached sample letter has a simple message: ban investor transfer fees because they hurt homeowners, but community associations don’t need to be micromanaged by FHFA. The letter is drafted for our homeowner and board members, but can easily be adapted for managers or business partners.

FHFA’s proposed restrictions on how funds from new transfer fees can be used are unprecedented and DO NOT follow established property law. Associations have the indisputable right to raise revenue and use this revenue the way residents determine.

To take action and file your comments with FHFA follow the instructions below. 

Process to Submit Comments and Sample Comment Letter

Comment Due Date:  April 11, 2011

Comments may be submitted by the following means:

  • E-mail: Use the address, regcomments@fhfa.gov, and include the following in the subject line of the e-mail: FHFA Proposed Rule on Certain Private Transfer Fee Covenants, (RIN) 2590-AA41
  • U.S. Mail: Use the following address to send comments by U.S. Mail –

    Mr. Alfred Pollard
General Counsel
Federal Housing Finance Agency
1700 G Street, NW
Washington DC 20552
ATTN: Public Comments: FHFA Proposed Rule on Certain Private
Transfer Fee Covenants, (RIN) 2590-AA41

  • Federal eRulemaking Portal: Go to www.regulations.gov and follow the instructions provided to submit your comments electronically. 


Attachments: Sample Letter to FHFA

*These articles and related content on this website are provided without warranty of any kind and in no way constitute or provide legal advice. You are advised to contact an attorney in Association Management for legal advice related to your specific issue and community. Some articles are provided by third parties and online services. Display of these articles does in no way endorse the products or services of Community Association Management by the author(s).