CAI-NJ CALL TO ACTION: Zombie Foreclosure Legislation is Scheduled for a Vote on Thursday, January 4, 2018!

Posted by on Jan 3, 2018 in Foreclosure, Legislation, Uncategorized



CAI-NJ’s Legislative Action Committee has issued a call to action for all New Jersey community associations.


Assembly Bill No. 3823 is scheduled for a vote before the New Jersey General Assembly on Thursday, January 4, 2018. This proposed legislation seeks to amend the law, which currently allows for an expedited mortgage foreclosure process (although not mandatory) for vacant and abandoned (“zombie”) properties. Specifically, this legislation proposes to allow community associations to either: (1) compel payment of association fees by the mortgage lender when the lender fails to proceed with the foreclosure process on a vacant and abandoned property in an expedited fashion; or (2) compel the appointment of a fiscal agent (receiver) over the abandoned property.

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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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CAI Webinar: New Federal Rules on Mortgage Closings, New Changes for Community Associations

Posted by on Aug 28, 2015 in CAI, Foreclosure, Legislation, Speaking Engagements

The U.S. Consumer Financial Protection Bureau’s “Know Before You Owe” mortgage closing rule becomes effective on October 3, 2015. The new federal rule sets in motion sweeping changes to the disclosures borrowers receive about their mortgage loans and closing costs when buying or refinancing a home. After October 3rd, community associations and their managing agents will be required to provide very specific and accurate information earlier in the process.

In order to prepare you for these changes, Ronald L. Perl, Esq., the partner-in-charge of Hill Wallack LLP’s Community Associations Group, will be participating in a Live Webinar on Wednesday, September 2, 2015, from 2:00 p.m. to 3:00 p.m. Joining Ron will be Dawn Bauman, CAE,  senior vice president of government and public affairs for Community Associations Institute (CAI) and C. Scott Canady of Tambala Strategy.

Earn Continuing Education Credit and learn about these important, new requirements and ask questions to help incorporate these new rules into your association’s everyday practice.

For more information and to register to attend this Webinar, click here.

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The Waiting is the Hardest Part: New FHA Mortgagee Letter Relaxes Criteria for Condominium Project Approval

Posted by on Sep 13, 2012 in FHA

By Jonathan H. Katz, Esq.

On June 30, 2011, the Federal Housing Administration (FHA) issued Mortgagee Letter 2011-22, its long-awaited Condominium Project Approval and Processing Guidelines for condominiums seeking approval for FHA mortgages. The uproar voiced from association boards, community managers, attorneys and lenders when the Guidelines were released was immediate and considerable, and confusion and serious concerns with certain requirements reigned for over a year.

Today, the FHA issued Mortgagee Letter 2012-18, which puts in place several temporary project guideline changes in order to relax certain onerous requirements of Mortgagee Letter 2011-22, including delinquency rates, fidelity insurance coverage, limitations on commercial space, and, most notably, the required Project Certification. As stated in the new Mortgage Letter, the FHA “determined that certain policy adjustments were needed to address current housing market conditions.” These changes are effective immediately, and will apply until August 31, 2014, unless further extended or modified by the FHA.

Notable modifications and changes include:

  • Delinquencies – No more than 15 percent of units may be more than 60 days delinquent (up from 30 days). The 15 percent limitation includes all units in the project (owner occupied, investor, bank owned or vacant), and the FHA will not consider any exceptions to this standard.
  • Fidelity Insurance Coverage – If the condominium engages the services of a management company, the company must have obtained its own fidelity coverage that meets the FHA association coverage requirements or the association’s policy must name the management company as an insured, or the association’s policy must include an endorsement stating that management company employees subject to the direction and control of the association are covered by the policy. This is a substantial change to the previous requirements that required management companies to obtain separate fidelity insurance for each condominium.
  • Commercial Space Limitations – The FHA will consider condominium projects with commercial space of between 25 and 35 percent; however, on a case-by-case basis (and with substantial documentation requests), exceptions will be considered for mixed-use condominiums with commercial space of up to 50 percent.
  • Project Certification – The FHA made considerable changes to the previous Project Certification required to be executed as part of any condominium project submitted for approval. The new, less onerous certification must state that: (1) to the best of the signatory’s knowledge, the information in the approval request is accurate; (2) he or she has reviewed the project application and upon the advice given by an attorney it meets all State and local laws; (3) he or she has reviewed the application and it meets all current FHA condominium approval requirements; and (4) he or she has no knowledge of circumstances or conditions that may have an adverse impact on the condominium project (construction defects, substantial operational issues, or litigation, mediation, or arbitration issues).

To read the FHA’s Mortgagee Letter 2012-18 in full, click here.

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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Perl to Speak on Mortgage Issues at the 2012 CAI – Pennsylvania and Delaware Valley Chapter Annual Conference & Expo

Posted by on Apr 16, 2012 in CAI, FHA, Speaking Engagements

Hill Wallack LLP Partner Ronald L. Perl, Esq. will discuss recent changes to the mortgage process by the Federal Government, FHA and FHFA during the 2012 CAI – Pennsylvania and Delaware Valley Chapter Annual Conference & Expo, which is being held on April 19, 2012, from 8 a.m. to 4 p.m. in Philadelphia, Pennsylvania at Citizens Bank Park, home of the Philadelphia Phillies.







Mr. Perl will be speaking about these issues, and how they can affect you and your association, during the Afternoon Educational Seminar titled “Mortgage Mess: Federal Housing Rules for Condos Explained,” from 3:00 p.m. to 4:00 PM in the Phillies Executive Dining Room on the Third Base Side of the Park.

For more information or to register to attend, click here!

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