Baca POA notified of cease and desist action (CO)

A Baca Grande Property Owners Association (BGPOA) member served a cease and desist letter to the homeowners association dated Oct. 16 alleging conflicts of interest involving the POA board and several violations of the Equal Housing Opportunity Act.   Bayardo Reno

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Condo financing aimed at renters

The rising cost and scarcity of undeveloped land will continue to change how and where we live.  What we have long thought of as alternative housing is getting more consideration in many conventional neighborhoods. Traditional East Coast co-op apartments and

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Must communities retrofit for handicap accommodation (FL)

The question often arises as to whether condominium, cooperative and homeowners’ associations need to install wheelchair ramps, elevator or swimming pool lifts or redo common area bathrooms to accommodate handicap persons.   The general answer is that associations may have

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FHA Extends Condo Rules for Reverse Mortgages, Other Loans

The Federal Housing Administration this week extended its current rules regarding condominium lending as it continues to work on permanent updates.  In a new mortgagee letter, the FHA implemented an open-ended extension of the existing condominium rules as laid out

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Is Anybody Home at HUD?

Now, however, HUD faced an existential crisis. The new president’s then-chief strategist, Steve Bannon, had called in February for the “deconstruction of the administrative state.” It was not hard to guess that, for a White House that swept to power

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Westbury condo settles discrimination lawsuit (NY)

A Westbury condominium complex has settled a lawsuit that challenged the building’s accessibility for disabled residents.  As a result of the settlement of the suit filed in Dec. 2015 by Long Island Housing Services, the Westbury Terrace Condominium made a

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What Are FHA-Approved Condos?

Federal Housing Administration condominiums are properties that can be purchased using FHA loans—or loans that are insured by the FHA. What requirements must these condos meet to be approved by the FHA? And where should you go to search for

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HUD Releases Final Rule Related to Discrimination in Community Associations

In September 2016, the U.S. Department of Housing and Urban Development (“HUD”) released final regulations relating to housing discrimination, which now require community associations to investigate claims of harassment by one resident of another resident who is a member of

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US Attorney Announces Settlement with Florida Condominium Complex Over Alleged FHA Reverse Mortgage Fraud

On July 20, 2017, acting United States Attorney Stephen Muldrow announced a civil settlement with the owner of a Florida condominium complex over fraudulent reverse mortgage transactions. Defendant had been accused of violating the False Claims Act (“FCA”) and the

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Puerto Rico Laws Block Condos From FHA Loans

Rogers told Caribbean Business, however, that condos in Puerto Rico may not be able to benefit from the easing of FHA condo financing programs because local laws have become a roadblock preventing HUD from granting the certifications.  To become certified,

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Why Condo Associations Need FHA Approval in 2017

Prior to 2005, few condominium boards paid much attention to Federal Housing Administration, or FHA, financing. At the time, the FHA only had a small fraction of condominium loans (about 5 percent) and FHA buyers, due to smaller down payment

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Trump Administration Overturns Obama’s FHA Mortgage-Fee Cut

Soon after Donald Trump was sworn in as president, his administration undid one of Barack Obama’s last-minute economic-policy actions: a mortgage-fee cut under a government program that’s popular with first-time home buyers and low-income borrowers.  The new administration on Friday

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Should your Condominium Association be VA Certified? (MI)

One out of every 11 citizens in Michigan is a veteran and may receive benefits from the U.S. Department of Veterans Affairs (VA). The VA may help service-members, veterans, and certain qualified surviving spouses of service-members and veterans become homeowners

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HR3700-affected condo rules in 90-day comment period

New rules on condominiums affected by HR3700 (The Housing Opportunity Through Modernization Act of 2016) that must make them eligible for the Federal Housing Administration insurance are now in the 90-day comment period, according to Mortgage News Daily.    Read

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FHA Condo Certification Rule Awaits Review by Trump Administration

The Federal Housing Administration (FHA) recently issued its long-awaited proposed rule regarding standards for condominiums in which individual unit owners are eligible to obtain FHA-insured loans. However, final action awaits review by new housing agency officials in the Trump Administration.

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New FHA Owner Occupancy Requirements Could Benefit Some Condo Communities

A few months ago we informed you that both houses of Congress voted unanimously to pass the Housing Opportunity Through Modernization Act (HOTMA) which, in part, required FHA to lower the required percentage of owner occupied units in condominiums from

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New HUD Neighbor to Neighbor Discrimination Regulations Impact Community Associations

On September 13, 2016, the U.S. Department of Housing and Urban Development (“HUD”) released final regulations that change how the Federal Fair Housing Act (“Act”) is applied to quid pro quo and hostile environment housing claims within community associations. The

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FHA Reforms Bringing New Risks as Well as Rewards

Now that President Obama has signed Federal Housing Administration condominium reforms into law, it is time to make a clear-eyed assessment of the risks and rewards that HR 3700 will bring.  It’s great that Congress has acted to ease regulations

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New FHA Certification Guidelines to Land Soon, Ending a 5-Year Holding Pattern

On June 30, 2011, the Condominium Project Approval and Processing Guide (“Guide”) was published by the U.S. Department of Housing and Urban Development (“HUD”). The Guide was designed to provide Federal Housing Administration (“FHA) condominium project approval processing requirements. Since

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Change to the FHA “10% to Reserves” Rule?

FHA approval is a status condo associations can attain, allowing unit owners/buyers to receive FHA insurance on their loans which make those loan more attractive to lenders. Depending on your location, as much as 30% – 40% of all residential

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New Harassment Rules Added to Fair Housing Act

HUD recently issued its final rules regarding quid pro quo (“this for that”) harassment and hostile environment harassment under the Fair Housing Act. The Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, disability and

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FHA pulls housing head fake on condo communities

Now for the head fake: In its announcement, FHA spelled out the conditions under which it would allow the lower owner-occupancy threshold

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Condo Residents Urge FHA to Ease Rules on Reverse Mortgages

It has been nearly one month to the date since the Federal Housing Administration proposed new rules that could make it easier for condo-dwelling seniors to obtain reverse mortgages. With the public comment period underway, various stakeholders are voicing their

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FHA Proposes Condominium Rules Update (CAI)

On September 27, 2016, the Federal Housing Administration (FHA) released a proposed regulatory update to its condominium unit mortgage insurance program. On balance the rule has many positive aspects, including a limited “spot approval” process. The rule further allows individual

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New Fair Housing Harassment Rules Apply to Community Associations

Condominiums, housing co-ops and homeowner associations may be liable for the conduct of community residents which subjects other residents to “hostile environment harassment” under new rules issued by (HUD).

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Must HOA’s act to end discriminatory actions by others?

While the HOA board had nothing to do with this Facebook page, they nevertheless were named as a defendant in the lawsuit

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Barriers to condo mortgages may be coming down, but details remain to be set

For many condominium buyers and sellers, the Obama administration delivered what seemed like encouraging news last week: The Federal Housing Administration, once the primary source of mortgage financing for moderate-income and first-time condo buyers, is coming back, big time.  But

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Community Association Liability – Neighbor to Neighbor Discrimination

Under this new regulation, community associations may be liable under the Act for the discriminatory actions of residents who harass or create a hostile environment for other residents.

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New FHA Condo Rules Expand Access to Reverse Mortgages

In response to changing conditions in the condominium market, the Federal Housing Administration (FHA) today proposed new rules that would allow individual condo units to become eligible for FHA financing, including Home Equity Conversion Mortgages (HECMs), an agency spokesman confirmed

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New FHA Rules to Create New Association Duties

a community association could face liability for the discriminatory acts of residents who harass or create a hostile environment for other residents

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Condominium Leasing Restrictions’ Impact on FHA Home Loan Eligibility

One such drawback of a lease and sale approval provision is a potential inability on the part of purchasers to obtain Federal Housing Administration (“FHA”) mortgage insurance on loans

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New Federal Law Eases FHA Restrictions on Condominium Mortgage Loans

The new law requires the US Department of Housing and Urban Development (HUD) to loosen the burdensome restrictions that, in recent years, have made it more difficult for condominiums to qualify for FHA-backed mortgage loans

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HOA HOMEFRONT: New law eases condominium lending requirements

On July 29, President Barack Obama signed into law H.R. 3700, the “Housing Opportunity Through Modernization Act of 2016.”

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FHA pulls rug from under resident’s retirement

But HUD ruled that as long as it’s part of the Talega master association, her home would not qualify for an FHA mortgage.

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Want to buy a condo? See how a new law could expand FHA options here in O.C. (CA)

President Barack Obama signed a new bill into law July 29 that could ease FHA financing for thousands of home shoppers relying on the more affordable condo market.

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New Law Makes Changes to FHA Condominium Approval Process

In July 2016, President Obama signed into law H.R. 3700, the “Housing Opportunity through Modernization Act of 2016,” which will allow more condominium associations to become FHA certified

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President Obama Signs Legislation Modernizing FHA Condominium Approvals

H.R. 3700 reforms the process? used by the Federal Housing Administration (FHA) to determine if condominium unit owners qualify for a mortgage with FHA insurance

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New FHA bill brings good news for condo buyers

The Federal Housing Administration has bungled its condo finance program.

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Senate Passes Bipartisan FHA Condo Reform Bill

The Senate approved a bill Thursday by unanimous consent that includes major reforms to the Federal Housing Administration condominium loan program

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Reverse Mortgage Industry Voices Concerns Over FHA’s HECM Proposals

Other commenters raised concerns over FHA’s proposals related to its rules on HECM eligibility for community association, such as condominium homeowner associations and housing cooperatives.

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FHA Proposes Rule Restricting Reverse Mortgages in Super Lien States

The proposed reforms would restrict owners’ eligibility for Home Equity Conversion Mortgages (i.e., reverse mortgages) in states where community association liens are provided “super lien” status

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Legislation easing FHA loan restrictions on condos remains in holding pattern

A bill that would make it possible for more condo buyers to get financing through the Federal Housing Administration (FHA) has run up against inertia in the U.S. Senate after gaining unanimous support in the U.S. House

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Proposed HUD Rule Would Make Associations Guardians of Civil Rights

The new proposed rule by HUD has very significant implications for the liability of associations in cases involving discrimination and harassment by their unit-owner members and resident tenants.

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New FHA proposal puts reverse mortgages above HOA super liens

“This rule proposes to require, as a condition for a HECM to be eligible for loan assignment, that the HECM mortgage be in lien status prior to homeowners association and condo association liens,” the proposal states.

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FHA may be open again to financing condos

In a speech this month to the National Association of Realtors, Housing and Urban Development Secretary Julian Castro said revisions to FHA rules on condos have been completed

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HUD’S Fair Housing Decision Upheld by First Circuit Court of Appeals

The decision upheld a Final Order that a condominium association discriminated against a resident with disabilities by refusing to allow him to keep an emotional support animal

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New HUD Guidance on Use of Criminal Background Checks

On April 4, 2016, HUD’s General Counsel released guidance for all housing providers (not just those who are HUD subsidized) regarding how the use of criminal background checks could potentially violate fair housing laws.

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New rules for condo buyers with FHA, VA loans

Because of the growing importance of FHA and VA approval, a new state law (AB 596) will go into effect July 1 that requires HOAs to include their approval status in their annual report.

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