CAI Reports That Leading Senator Chides FHA on Condos
In an ongoing effort to persuade the US Department of Housing and Urban Development ("HUD") that the FHA certification guidelines must be revised in a manner that takes very real industry concerns into consideration, Community Associations Institute ("CAI") made the following announcement regarding the actions of United States Senator Scott Brown:
"Massachusetts Senator Scott Brown has sent a strongly worded letter to the Secretary of Housing and Urban Development expressing concerns over the development and implementation of FHA’s condominium guidelines. The letter specifically addressed the concern over the recent actions by FHA to deny mortgage funding to associations with special assessments or loans for property improvements. Senator Brown also expressed confusion for an association in securing insurance versus fidelity bonds and ultimately called for the removal of the “invisible barrier” that seems to hinder a positive resolution between community associations and FHA. You can read the letter here.
This letter is another BIG victory for CAI and our members’ efforts to reform the current FHA criteria and rulemaking process. Senator Brown’s letter will certainly get the attention of FHA officials who have continued to implement flawed condominium underwriting criteria despite concerns expressed by CAI and condominium owners across the country. A big thank you goes to CAI’s Massachusetts LAC and CAI members, whose efforts, led by CAI member Stephen Marcus, helped secure this important letter of support for all condominium owners. This is an important development in CAI’s efforts to move FHA to adopt more rational and fair criteria."