HUD Charges Hawaii Condominium Association, Management Company, Condominium Unit Owners, and Real Estate Agent with Disability Discrimination

The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging individuals and entities associated with a Kailua-Kona, Hawaii, condominium complex, including the condominium association, employees of the condominium association, the property management company, an employee of the property management company, the condominium unit’s owners, and the owners’ real estate broker […]

Feds Seek to Enhance HECMs for Senior Homeowners

The Federal Housing Administration (FHA) has is seeking industry feedback on a set of proposed policy updates to its Home Equity Conversion Mortgage (HECM) program designed to improve program stability and to respond to changing market conditions……….(inc.) Allowing outstanding homeowner’s association dues to be included in the calculation of a repayment plan for borrowers who are […]

Website Accessibility: The ADA and FHA

In recent years, and trending more frequently as of late, we have heard about businesses, big and small, receiving demand letters related to their website accessibility, alleging ADA noncompliance, and threatening to file suit and seek damages on behalf of the people with disabilities they represent. Here we will cover what web accessibility means and […]

FHA-approved condos: What they are and how they work

FHA-approved condos may seem like a no-brainer. They allow you to build equity without having to maintain a home or property. FHA-approved condos are also especially appealing to first-time home buyers, since the credit score and downpayment requirements are often considerably lower than most conventional mortgages.   Read the article………………………..

Be Aware Of Potential Disparate Impact Discrimination Claims In Your Association (MI)

In community association administration, disparate impact claims can arise when a seemingly neutral policy or practice has a disproportionate negative impact on a group protected by fair housing laws. For example, communities occasionally ask us whether they can restrict the number of people that live in a property based on the number of bedrooms.    Read […]

How to Get on the FHA Condo Approval List

If you want to buy a home but the down payment requirements make this seem out of reach, there are more affordable options. Choosing an FHA-approved condo allows you an easier option to buy with lower credit and down payment requirements.   Read the article………………………..

New Announcement by HUD Means More Options for Flood Insurance

All community association boards want to be good stewards of the funds collected from their homeowners. Sometimes, when finances are tight, a board has to face hard choices about how to reduce costs. That might mean reducing services or even deferring needed maintenance for a period of time where that maintenance is not essential to […]

HUD charges California condo operators with disability discrimination

The U.S. Department of Housing and Urban Development has charged the operators of a 556-unit, high-rise condominium tower located in Long Beach, Calif., with discriminating against a homeowner because of disability by refusing to provide her a permanent parking space to accommodate her wheelchair-accessible van.   Read the article………………………..

Aurora homebuyers may lose condos awaiting U.S. Department of Housing and Urban Development approval (CO)

Pritchard was approved for an Federal Housing Administration (FHA) loan, and the single mom thought she had been doing everything right. That was until two weeks ago when her realtor learned the U.S. Department of Housing and Urban Development (HUD) had still not approved the building for FHA loans.   Read the entire article……………………………….

Surfside Towers Collapse Causes Tighter Maintenance and Capital Reserve Requirements for Associations (PA)

It has been about half a year since the terrible collapse of Champlain Tower South in Surfside, Florida. Because of this tragedy, condominium and homeowners’ association boards and owners have been concerned about the structural safety of their buildings. And now Associations are facing hard questions from mortgage companies concerning both maintenance and capital reserve […]

New Freddie Mac Underwriting Guidelines for Condominium and Cooperative Projects

Freddie Mac has promulgated new temporary underwriting requirements for mortgages secured by units in condominium and cooperative projects in need of “Critical Repairs”1 and those with current or planned special assessments. The guidelines come in the wake of the collapse of the Champlain Towers South in Surfside, Florida, and apply to all condominium and cooperative […]

Fraud Alert: Mortgagee Questionnaire Scams

In response to the tragedy at the Surfside condominium in Florida, Federal mortgagees are starting to update their questionnaires that are required to be completed in conjunction with the financing of a condominium unit sale. These changes include questions about the current status and condition of the property that are difficult to answer, along with […]

FNMA Lender Letter Articles

On October 13, 2021, the Federal National Mortgage Association (Fannie Mae) issued Lender Letter LL-2021-14 (“Lender Letter”), to take effect January 1, 2022. This Lender Letter temporarily revises the eligibility requirements for lenders issuing loans that may be purchased by Fannie Mae for properties located in condominiums containing five or more attached units.     Read […]

HUD Provides More Guidance on Emotional Support Animals but Little Help for Association Boards Dealing with Accommodation Requests

Condo association attorneys had long been anticipating new guidance from the Department of Housing and Urban Development (HUD) dealing with emotional support animals. That guidance was finally issued in January 2020, but it fell short of the stricter requirements practitioners had wanted.    Read the entire article……………………………….

HUD Provides More Guidance on Emotional Support Animals but Little Help for Association Boards Dealing with Accommodation Requests

Condo association attorneys had long been anticipating new guidance from the Department of Housing and Urban Development (HUD) dealing with emotional support animals. That guidance was finally issued in January 2020, but it fell short of the stricter requirements practitioners had wanted.    Read the entire article……………………………….

HUD Charges Fla. HOA with Disability Discrimination

A condo owner helped remove debris following 9/11 and needs to leave shoes outside due to a respiratory condition. HUD alleges the condo board turned down his request.  Read the entire article……………………………….

Updated HUD Guidelines Regarding Service and Support Animals and the Reasonable Accommodation……. (WA)

On January 28, 2020, the U.S. Department of Housing and Urban Development (HUD) issued long-await updated guidelines to housing authorities, such as condominium associations and homeowners associations, related to service animals, support animals, and reasonable accommodation requests. A reasonable accommodation request is a tool that residents use when seeking accommodation from their housing authority to […]

FHFA Issues RFI on Short-Term Rental Units in Condominium, Cooperative, and Planned Unit Development Projects

The Federal Housing Finance Agency (FHFA) today issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) eligibility requirements for mortgages in condominium (condo), cooperative (co-op), and planned unit development (PUD) projects where a large portion of units are offered for short-term rental (30 days or less) or are used primarily […]

HUD Revises Condominium Forms HUD-9991 and HUD-9992

In Mortgagee Letter 2021-09, HUD announced the publication of Form HUD-9991, FHA Condominium Loan Level/Single-Unit Approval Questionnaire and Form HUD-9992, FHA Condominium Project Approval Questionnaire. Major changes to both forms include, consolidation or elimination of required information, removal of the requirement that the Condominium Association complete the form and sign the certification, and permitting data […]

The FHA, ADA, & Community Associations: What Boards Need To Know (Part 2) (NC)

In a recent article, we began our discussion of the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) as they relate to community associations. A large part of understanding the FHA and ADA is knowing who they protect, the provisions of those protections and what housing providers such as homeowner’s associations must […]

REASONABLE ACCOMMODATIONS UNDER THE FAIR HOUSING ACT

The Department of Justice (“DOJ”) and the Department of Housing and Urban Development (“HUD”) are jointly responsible for enforcing the federal Fair Housing Act1 (the “Act”), which prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, familial status, and disability.2 One type of disability discrimination prohibited by the Act is […]

Why Most Florida Condominiums Don’t Qualify for FHA Financing

Let’s start with some background on FHA-insured mortgage financing. The Federal Housing Administration (FHA) is an agency of the US Department of Housing and Urban Development (HUD), a Cabinet-level department of the Federal government. In order to help make mortgage funding available to a broader rangeof buyers, the FHA insures independent lenders against buyer/borrower default. […]

The FHA, ADA, And Community Associations: What Boards Need To Know (NC)

The Fair Housing Act (FHA) was created to ensure that Americans receive equal treatment when seeking housing and thereby made it illegal to discriminate against people based upon certain protected classes. Closely related to the FHA, the Americans with Disabilities Act (ADA) was created to ensure that those with disabilities are afforded equal access to […]

FHA Recertification and Your Community Association

The Federal Housing Administration guarantees home certain loans offered through conventional lenders, these are known as FHA Loans. These unique loans allow homebuyers to use a smaller down payment and sometimes to have lower credit scores than lenders typically require for conventional mortgages. Traditionally, FHA guaranteed loans for condo purchases only if the entire association […]

Can a Group Home be Built in a Single Family Association under the FHA – YES

Plaintiff, Harmony Haus and a resident, sued Defendant, Parkstone Property Owners Association (“Association”) under the Fair Housing Act (“FHA”) seeking an injunction and attorney fees for violation of the Civil Rights Act. Association counter sued alleging breaches of deed restrictions. Plaintiff is a sober living residence for individuals recovering from alcoholism and drug addiction.    […]

Less Than 1% of Miami’s Condo Buildings Have FHA Approval (FL)

According to a recent report by Miami Realtors, only 13 of the 9,307 condominium buildings in Miami-Dade and Broward counties were approved for Federal Housing Administration (FHA) loans, down from 29 last year.  In Florida, potential condo buyers must personally qualify for a home loan, but the condo project itself must also undergo approval for […]

How the New Condo Rule is Playing Out for Reverse Mortgage Lenders

In late 2019, the Department of Housing and Urban Development issued new condominium guidelines that aimed to make it easier for single units to be approved for Federal Housing Administration (FHA) financing. This included transactions under the Home Equity Conversion Mortgage (HECM) program.   Read the article…………………………..

Occupancy Restrictions and the FHA (FL)

Many Associations’ Declarations contain occupancy restrictions relating to the number of bedrooms in a home or unit. The standard provision reads two person per bedroom are permitted in a unit or home. However, does this occupancy restriction violates the federal and/or Florida Fair Housing Acts (“FHA”)? The short answer is, it depends.      Read […]

HUD Issues New Guidance for Assistance Animals in Housing

Changes in public perceptions and levels of awareness of the issues surrounding emotional support animals have created a mandate for new state laws and federal policies. Earlier this year I wrote in this column about new measures being considered by the Florida Legislature as well as the U.S. Department of Housing and Urban Development. HUD […]

FHA Updates – Assistance Animals

The Fair Housing Act (“FHA”) prohibits a community association from discriminating against a person in providing services or facilities in connection with a sale or rental because of disability. Prohibited discrimination includes (1) a refusal to make reasonable accommodations; and (2) a refusal to permit reasonable modifications.   Read the article…………………………..

HUD’s Guidance on Application of Fair Housing Act Standards to the Use of Criminal Records: Where Do We Stand?

A client recently came to me about amending the declaration of the homeowner’s association to prohibit certain specific violent felons, and, in particular, sexual predators from residing in the association. The client posed the question as to whether the proposed amendment would be discriminatory since they had heard that the use of criminal background checks […]

Say Good-Bye to Emotional Support Emus (CO)

In January 2020, United States Department of Housing and Urban Development released updated guidelines pertaining to Emotional Support Animals (“ESA”) under the Fair Housing Act (“FHA”). These new guidelines materially altered the previous guidelines relating to emotional support animals by changing the documentation requirement for emotional support animals and by changing the type of animal […]

HOA Homefront: Need an assistance llama? HUD says not so fast

Assistance animals are very important to certain disabled people. Under the federal Fair Housing Act and California Fair Housing Regulation section 12005(d), such animals are not pets, and housing providers — including HOAs — must make reasonable accommodations to permit such animals.   Read the article………………………….

New Guidelines From HUD Aid Boards Reviewing Requests For Assistance (MI)

On January 28, 2020, the U.S. Department of Housing and Urban Development (HUD) issued new guidelines clarifying how housing providers can comply with the Fair Housing Act (FHA) in reviewing an individual’s request for an assistance animal. These requests often prove to be tricky to navigate for both parties, as individuals may not understand what […]

Navigating New HUD Assistance Animals Guidelines

On January 28, 2020 the U.S. Department of Housing and Urban Development (“HUD”) issued new guidelines regarding “certain obligations of housing providers under the Fair Housing Act (“FHA”) with respect to [assistance] animals that individuals with disabilities may request as reasonable accommodations.” A copy of the new guidelines may be found at https://www.hud.gov/sites/dfiles/PA/documents/HUDAsstAnimalNC1-28-2020.pdf     Read […]

The top 3 things you must know about HUD’s new guidance on assistance and emotional support animals

On January 28, 2020, the Department of Housing and Urban Development (HUD) issued new guidance on how housing providers, such as condominium associations, homeowners associations and landlords, can comply with the Federal Fair Housing Act (FHA), 42 USC 3601 et seq. in evaluating requests for assistance and emotional support animals. HUD estimates that 60% of […]

New HUD Guidelines on Assistance Animals

Purpose:This notice explains certain obligations of housing providers under the Fair Housing Act (FHA) with respect to animals that individuals with disabilities may request asreasonable accommodations.There are two types of assistance animals: (1) service animals, and (2) other trained or untrained animals that do work, perform tasks, provide assistance, and/or provide therapeutic emotional support for […]

New Guidelines for FHA Financing in Condominiums (UT)

If you’ve ever worked with a Condo Association to obtain project approval for FHA financing, you are aware that the process can be cumbersome. It involves gathering and presenting governing documents, financial statements, and insurance policies, among other required documentation and certifications.  Read the article…………………………

Federal Rule Changes Impact Real Estate

The start of the New Year means new laws go into effect, many of which impact buyers, sellers, homeowners, and investors in real estate. This year, several new laws and regulations will make it easier for certain homebuyers to obtain financing, investors to obtain the insurance they need, and property owners to take advantage of […]

Updated Condominium FHA Approval Rules

On September 12, 2019, our office published a blog explaining the new FHA Condominium Approval Rules that became effective on October 15, 2019, which includes the single-unit approval process. The purpose of these new rules was to create more opportunity for individual condominium owners to obtain FHA insured mortgages. As many condominium associations are learning, […]

Important Tips About FHA Condo Approval (TN)

There has been a great deal of debate about how to successfully afford housing for the younger generations in the United States that have larger financial strains due to excessive debt or limited credit history. The federal government has made an effort to create a policy that enables less-established prospective buyers to have the potential […]

Those new FHA condo regs have wide-reaching implications (IL)

This past October, the Federal Housing Administration (FHA) enacted long-expected changes to the regulations governing condominium purchases. While these amendments will hopefully ease more prospective homebuyers’ affordability woes, the wider commercial real estate industry will feel the effects as well.    Read the article……………………….

New Rules For FHA Financing – What Board Members Need To Know (FL)

For some home buyers, financing the purchase of their new home can be a barrier to entry. Many home buyers need the benefit of an FHA backed loan for their lower interest rates. The Federal Housing Authority (FHA), a part of the Department of Housing and Urban Development (HUD), has provided mortgage insurance on loans […]