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.