Is FHA intentionally targeting condominiums, trying to exclude hundreds or thousands of them around the country from qualifying for financing under its mortgage insurance program? FHA officials tell me absolutely not. But an abrupt new “no-tolerance” move by the agency has large numbers of condo associations across the country wondering whether FHA is looking to dump them. The issue is technical and involves language buried away in condo associations’ core legal documents -- their “CC&Rs,” or covenants, conditions and restrictions. Buried in many CC&Rs is language that prohibits units in the project from being leased for periods of less than 30 days. But many associations’ CC&Rs have for decades contained a seemingly innocuous exception for units taken back...
May 7, 2013 by Ken Harney
Apr 9, 2013 by Ken Harney