Stakeholders in the community association industry nationwide have an important opportunity to share their concerns with the government about proposed new regulations which could limit how some HOAs use money they collect in transfer fees. DEADLINE FOR COMMENTS IS MONDAY, APRIL 11.
The Federal Housing Finance Agency (FHFA) published a Notice of Proposed Rulemaking before issuing new lending regulations which would impact loan approvals. Community Associations Institute (CAI) has been active in advocating for the industry on this issue. On CAI’s FHFA, Transfer Fee Reg. Resource Page you’ll find a variety of resources for learning more, including FAQs, the revised rules, and a letter to FHFA explaining CAI’s concerns.
The good news is that, in response to feedback from CAI and other stakeholders, FHFA has made several positive changes to the proposed regulations about transfer fees that would benefit community associations. Unfortunately, problems still remain with some details.
To summarize a complex issue, CAI is concerned that if the regulations are adopted as currently proposed, those regulations will have the impact of micromanaging HOA budgets. Communities that fail to follow the regulations could experience restrictions on federally guaranteed or insured mortgages.
Please take action by April 11:
- via e-mail: [email protected], with the subject line: FHFA Proposed Rule on Certain Private Transfer Fee Covenants, (RIN) 2590-AA41
- online via the Federal eRulemaking Portal: www.regulations.gov
- send a copy of your comments to CAI at [email protected] with “FHFA” in the subject line
We’ll keep you updated on the progress of this issue.