FHA Proposes New Regulations for Condominium Project Approval

Posted by on Sep 28, 2016 in FHA, Legislation, Uncategorized

By Jonathan H. Katz, Esq.

On September 27, 2016, the Federal Housing Administration (FHA) proposed new regulations governing the condominium project approval process. These proposed regulations seek to address issues created by certain onerous requirements of Mortgage Letter 2011-22 as well as to respond to the changing conditions in the condominium market.

The notable proposed regulations include:

  • Minimum Owner-Occupancy Requirements – FHA currently requires a minimum of fifty (50) percent of the units occupied by owners. FHA is specifically inviting comment on this issue and is proposing to establish an allowable range of owner-occupancy between twenty-five (25) and seventy-five (75) percent. The range would allow FHA to choose a specific percentage that is responsive to future market changes.
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Katz Quoted in NJ Cooperator Article on “Vetting Your Professionals”

Posted by on Dec 14, 2015 in Contracts, New Jersey Cooperator, Uncategorized

In the November 2015 edition of The New Jersey Cooperator, Jonathan H. Katz, Esq., a partner in Hill Wallack LLP’s Community Associations Group, was quoted in the article “Vetting Your Professionals; Hiring the Best People for the Job.”

The article discusses finding the right contractor for your community association and includes some helpful tips on reviewing the contractor’s proposal and ensuring that the contractor is properly insured and licensed.

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CLIENT ALERT: N.J. Supreme Court Issues Important Decision Expanding Community Association Residents’ Free Speech Rights

Posted by on Dec 8, 2014 in First Amendment Rights, Legal Decisions, Uncategorized

On December 3, 2014, the New Jersey Supreme Court decided Dublirer v. 2000 Linwood Avenue Owners, Inc., which created a new test for determining whether the New Jersey State Constitution protects free speech on private property in community associations. In Dublirer, the Court determined that the determination must “focus on ‘the purpose of the expressional activity undertaken’ in relation to the property’s use” and to consider the “general balancing of expressional rights and private property interests” to determine “‘the fairness of the restrictions imposed’ with regard to residents’ free speech rights.”

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Perl Featured on “Flying the Flag” Podcast for Habitat Magazine

Posted by on Jan 3, 2013 in Uncategorized

Ronald L. Perl, Esq., the partner-in-charge of Hill Wallack LLP’s Community Associations Group, was recently featured on Habitat Magazine‘s Legal Talk Podcast dealing with “Flying the Flag.”

As discussed in the podcast, the question addressed was: “While we are aware of the Freedom to Display the American Flag Act of 2005, there is one shareholder who is displaying an oversized American flag and it hangs over his small lower floor balcony. Is the board of directors permitted to limit the size of American flags that are displayed by shareholders?”

You can listen to the full Habitat podcast here.

For more information on this or any other issue concerning your community association, please contact one of our Community Associations attorneys. For breaking news or updates on new blog posts, follow us on Twitter at: @njcondolaw.

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Coming Soon! FHA Revisions to the Condominium Project Approval and Processing Guidelines

Posted by on Apr 13, 2012 in CAI, FHA, Uncategorized

By Jonathan H. Katz, Esq.

CAI-National is advising that the Federal Housing Administration (FHA) is likely to take action in the coming months regarding several proposed revisions to the Condominium Project Approval and Processing Guidelines, which were released last June. These revisions are expected to address, among other issues, transfer fees and the troublesome certification statements.

With respect to transfer fees, CAI anticipates the FHA’s new guidelines will be more in line with the recent final rule issued by the Federal Housing Finance Agency (FHFA) that allows condominiums, homeowners associations and cooperatives that collect private transfer fees with certain limitations. CAI advises that the FHA has indicated the new policy will likely permit transfer fees used for “administrative” purposes, but will continue to disallow fees that are based on a percentage of a property’s sale price.

With respect to the FHA’s required project approval certifications, CAI anticipates the FHA will make modest adjustments to this certification to clarify certain duties imposed by signing; however, CAI does not expect that the FHA will modify the existing certification to protect signors from making legal determinations or attestations that the condominium is in compliance with all applicable local, state, and federal laws and regulations.

You can read more information on these issues from CAI here.

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FHFA Publishes Final Rule on Private Transfer Fees

Posted by on Mar 15, 2012 in CAI, Uncategorized

By Jonathan H. Katz, Esq.

In a major victory for CAI-National and its Government and Public Affairs Department, the Federal Housing Finance Agency (FHFA) has issued a final rule that allows condominiums, homeowners associations and cooperatives that collect private transfer fees (also known as working capital or capital contribution fees) to qualify for mortgages insured by Fannie Mae, Freddie Mac and the Federal Home Loan banks.

As detailed in previous posts, the Federal Housing Administration (FHA) Condominium Project Approval and Processing Guidelines issued in June 2011 originally required the rejection of applications submitted by condominium associations that charged a private transfer fees, including working capital or capital contribution fees. FHFA’s new ruling should resolve this over restrictive pronouncement and allow condominium associations that collect such fees access to FHA-insured mortgages.

Our congratulations and thanks are due to CAI-National, its Government and Public Affairs Department and the Federal Legislative Action Committee who have fought long and hard and continue to be at the forefront in their opposition to this and many of the other newly imposed FHA restrictions.

For up-to-date information on the changes to the FHA’s Condominium Project Approval and Processing Guidelines, click the FHA Central tab or follow us on Twitter: @njcondolaw.

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