The U.S. Department of Housing and Urban Development (HUD) issued a new Mortgagee Letter (ML) late Thursday updating the origination requirement for FHA mortgages on condominium units, applicable to both the traditional, forward mortgage and reverse mortgage programs simultaneously. The letter provides additional clarification ahead of the rule’s implementation on October 15. Read the article………………………….
FHA’s Montgomery says “more flexible” condo rules are coming
Federal Housing Administration Commissioner Brian Montgomery said the agency is currently working to revise its condominium approval rules and that he expects a final rule to be announced soon. Speaking before 100 representatives from the National Association of Realtors at a meeting last week about regulatory issues in housing, Montgomery said the agency is actively […]
HUD Rule Changes How HOA’s Address Neighbor Disputes
Historically, Associations have avoided interjecting in neighbor-to-neighbor disputes. Heavy walking, loud parties, surround sound systems, and slamming doors were just a few of the commonly voiced resident complaints, and up until now, the response from most Association Boards was that the residents must settle these matters amongst themselves. Read the entire article……………………………….
HUD Demonstrates Continued Commitment to Aggressive Enforcement of the Fair Housing Act
Fifty years after the passage of the Fair Housing Act, the United States Department of Housing and Urban Development (HUD) continues to demonstrate a strong commitment to Fair Housing, both through the support of private enforcement and through its own public enforcement. HUD recently announced that 80 non-profit organizations committed to fair housing will receive […]
FHA Tips: Fidelity Insurance
When the Federal Housing Administration (FHA) is reviewing a condominium association’s application for certification, there are serval criteria that can trigger an immediate rejection. In our work with clients, the most common issue we see is the association’s fidelity policy falling short of FHA guidelines. Read the article………………….
Community Associations’ Liability for Sexual Harassment Under HUD’s Hostile Environment Rules
In the summer of 2013, Kayla West began looking for a house to rent in Georgia. She came across a rental home owned by DJ Mortgage, LLC, and contacted Gene Andrews, DJ Mortgage, LLC’s property and leasing manager. Ms. West entered into a lease agreement for the rental property, and between August 2013 and October […]
HOA rejects request for satellite antenna (NV)
Q: My homeowners association rejected my request to mount a satellite antenna on the roof of my condo. Unfortunately, I cannot get a line of sight from my patio, hence my request to mount a dish on the wall (not on the flat roof). My only recourse is to seek legal action, IAW FCC — […]
HUD Resolves Disability Discrimination Case Complaint Against Condominium Association in New Jersey
Last week, the U.S. Department of Housing & Urban Development (HUD) issued a press release to announce it resolved a disability discrimination case in November 2018 filed against a New Jersey age 55 and over condominium association involving claims that the condo association violated the Fair Housing Act (FHA) by refusing to sell a couple […]
FHA Requests for Reasonable Accommodations and Modifications (AZ)
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. In a community association context, a common example […]
HUD accuses Denver condo of discrimination (CO)
The HUD complaint states the six-story building with 164 units, discriminates against handicapped people by violating wheelchair accessibility codes under the federal Fair Housing Act. Read the article………………..
HUD Brings Disability Discrimination FHA Charge in New Jersey Related to Restrictions on an Assistance Animal
Late last month, the U.S. Department of Housing & Urban Development (HUD) charged a condominium association in New Jersey with disability discrimination in violation of the federal Fair Housing Act (FHA). According to HUD, the complaint asserts that the condominium required that a resident (with vision and hearing impairments) use the service door (as opposed […]
FHA Condo Approval: Adding Value for Your Community (WI)
The Federal Housing Administration will insure mortgage loans by lenders that make a loan for the purchase of a residential condo, if the unit is in an FHA-approved condominium community. Considering FHA insured loans account for almost 25% of all home mortgage loans made nationwide, it follows that a unit in an FHA-approved community will […]
Emotional Support Animals and the FHA: What Community Associations Should Know
In a previous post, we discussed Dexter the (almost) flying emotional support peacock. In this post, we turn our attention to Maybelline the emotional support pig in the great state of Florida. Maybelline is at the center of a dispute between her owner and her owner’s HOA. The owner claims that she suffers from certain […]
HUD Considering New Emotional Support Animal Guidelines to Crack Down on Abuse
Many community associations’ governing documents contain pet restrictions, sometimes prohibiting them all together. Most owners residing in such communities expect they will not encounter a pet not permitted to reside in the community. However, these assumptions are quickly becoming less common with the increasing number of requests for an accommodation by owners wanting to keep […]
Community Associations Seek Guidance and Clarification on HUD’s Third-Party Harassment Rule
Earlier this month, CAI sent a white paper to the U.S. Department of Housing and Urban Development (HUD) seeking guidance and clarification for community association board members related to the Sept. 2016 rule titled, “Quid Pro Quo and Hostile Environment Harassment and Liability for Discriminatory Housing Practices Under the Fair Housing Act.” When it was […]
U.S. Senators Press HUD to Prioritize FHA Condominium Approvals
Senators Tim Scott (R-SC) and Robert Menendez (D-NJ) were joined by 52 U.S. senators in calling for HUD Secretary Ben Carson to comply with updated Federal Housing Administration’s (FHA) condominium rules, according to Community Associations Institute (CAI), the leading authority in community association governance, management, and education. Read the article………………..
Push for New FHA Condominium Rule
More than 100 advocates met with 150 congressional offices and federal lawmakers to educate them about the community association housing model during CAI’s recent 2018 Advocacy Summit in Washington, D.C. Attendees specifically pushed for reform of the Federal Housing Administration (FHA) condominium program during their visits. A critical component of FHA’s mission is serving first-time […]
FHA Clarifies Position on Lending Guidelines and Leasing Restrictions
Many condominium associations have restrictions limiting an owner’s ability to lease their property. These provisions are intended to preserve property values and protect unit owner quality of life. However, such restrictions may limit financing options for prospective purchasers. Recently the U.S. Department of Housing and Urban Development (“HUD”) clarified whether certain leasing restrictions within a […]
Federal Government Shutdown & Community Associations
Funding for federal government agencies expires January 20. If congressional leaders and President Trump are unable to strike a budget deal, operations at federal government agencies will be sharply curtailed. What does this mean for community associations? CAI has verified federal government shutdown activities and impacts at the following agencies. Read the article……………….
What is FHA as it Relates to Condominium Associations: Pros and Cons
Since 2010, the FHA has required that entire condominium associations be certified before granting FHA backed loans to home buyers. Prior to 2010, the certification was only required for the individual unit. Condominium associations considering FHA certification must understand the FHA organization and what constitutes eligible projects. Equally important is understanding the truth regarding common […]
FHA Condo Approval: It Still Matters
On a condo board? One of your new year’s resolutions should be to look at obtaining Federal Housing Administration (FHA) approval for your condominium association. FHA approval helps ensure that units for sale in your building are marketable to the widest range of borrowers. The FHA is one of the only organizations that has established […]
HOA Governance: The Pros and Cons of an HOA Rental Cap
The policies of any HOA are sometimes a touchy subject because, at any one time, homeowners are simultaneously responsible for and subject to the rules set out by their home owner’s association. There are a number of perfectly normal policies that are put into place like a stylistic agreement to keep the neighborhood looking nice […]
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 to waive certain rules to reasonably accommodate the handicap, such as allowing emotional support or […]
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 in previous letters released in 2012 and 2015 — essentially freezing the status quo until […]
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 on a wave of racially tinged rural resentment and anti-welfare sentiment, high on the demolition […]
HOA Liability for Discriminatory Harassment: A Primer
Title VIII of the Civil Rights of 1968, also known as the Fair Housing Act (“FHA”), is a federal law which prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status. Because the FHA applies to entities that set terms and conditions for housing and provide […]
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 Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”). Read the article……………
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 said it’s canceling a reduction in the Federal Housing Administration’s annual fee for most borrowers. […]
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 50% to 35% unless FHA could prove that a higher percentage of owner occupancy was […]
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 new rules, some of which went into effect on October 14, 2016, affect what community […]
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 June 30, 2011, a handful of Mortgagee Letters from HUD have provided small changes to […]
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 familial status. Although community associations do not typically consider themselves to be “housing providers,” the […]
FHA Lowers Owner-Occupancy Requirements on Condos
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Community Association Liability – Neighbor to Neighbor Discrimination
There is a dangerous trend being established by the U.S. Department of Housing and Urban Development (“HUD”) under the Federal Fair Housing Act (the “Act”) and the enforcement of the Act of which community associations must be aware. On April 4, 2016, HUD’s General Counsel issued guidance regarding the application of the Act on the […]
New FHA Rules to Create New Association Duties
On September 13, HUD released new rules for the Fair Housing Act (FHA) that will impact community associations. Under these new rules, which take effect on October 14, 2016, a community association could face liability for the discriminatory acts of residents who harass or create a hostile environment for other residents. As our regular blog […]
Condominium Leasing Restrictions’ Impact on FHA Home Loan Eligibility
Frequently, the governing documents of condominium associations contain limitations on the ability of owners to lease or sell their property, such as provisions requiring owners to obtain the Association’s approval before such leases or sales may take place. Although these provisions are often very important to the association’s ability to protect its members’ happiness and […]
Want to buy a condo? See how a new law could expand FHA options here in O.C. (CA)
For 15 years, Judy Johnson planned to get a reverse mortgage when she retired, supplementing her Social Security with proceeds from her San Clemente condo. But after she stopped seeing clients and shut down her public relations business last year, Johnson discovered the government had changed the rules on her. Her three-bedroom condo in Talega […]
New Law Makes Changes to FHA Condominium Approval Process
Unless a condominium association is certified by FHA, lenders may not offer borrowers FHA-insured mortgages. In 2009, FHA implemented a number of changes to the agency’s condominium approval requirements. As a result, the number of FHA-approved condominium associations has plummeted. In July 2016, President Obama signed into law H.R. 3700, the “Housing Opportunity through Modernization […]
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. Read the article………….
FHA Proposes Rule Restricting Reverse Mortgages in Super Lien States
Recently proposed changes in FHA lending programs and guidelines could have drastic effects for 22 states (including Colorado) and the District of Columbia. 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 Read the article……………
New FHA proposal puts reverse mortgages above HOA super liens
The Federal Housing Administration proposed a new rule today that could strengthen its Home Equity Conversion Mortgage Program. Perhaps one of the largest reforms, is the prioritization of the HECM lien above all others — the establishment of a so-called “super lien.” “This rule proposes to require, as a condition for a HECM to be […]
HUD – Service and Assistance Animals (Large PDF)
http://communityassociations.net/wp-content/uploads/2016/05/servanimals_ntcfheo2013-01.pdf
HUD’S Fair Housing Decision Upheld by First Circuit Court of Appeals
The U.S. Department of Housing and Urban Development announced today that it has won an important Fair Housing Act victory in the United States Court of Appeals for the First Circuit. The decision upheld a Final Order of the Secretary of HUD following a trial before an administrative law judge that a condominium association discriminated […]