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The Community Associations Institute (CAI) formed a working group of industry experts to identify specific areas of the FHA regulations that need to be changed. They have prepared a policy position to advocate the changes that are needed. On Oct. 23, 2009, CAI sent comments to David H. Stevens, commissioner of the Federal Housing Administration, to assist the FHA in addressing the current challenges in the mortgage markets. The following are CAI comments and recommendations relating to the proposed regulations that affect condominium community associations:

 

In these difficult financial times, more and more members are finding the need to sell their homes through the short-sell process as a result of declining home prices and the present state of the economy. For members who owe a lender more than what their properties are currently worth and can no longer make their mortgage payment due to a job loss, divorce, or resetting of an adjustable-rate mortgage, foreclosure seemed like the only alternative—until relatively recently.

An increasing number of associations are dealing with weakening finances because a percentage of their members are unable to pay their assessments on time. The economic situation is grim. According to data from the Equifax Credit Bureau, high U.S. unemployment keeps pushing up the rate of mortgage delinquencies, which in turn drives personal bankruptcies and home foreclosures. August marked the fourth consecutive monthly increase in delinquencies, and the report showed an accelerating pace.

For co-op and condo boards waiting for the right time to make their buildings more energy efficient, this year may be the time to start taking steps to turn their desires into reality. In February 2009, President Obama signed The American Recovery and Reinvestment Act of 2009, often referred to as the Stimulus Bill.

The possible presence of a sex offender within a community gives rise to unique issues. Oftentimes, associations' governing documents impose duties on the board of directors to maintain “safe” conditions for association members. Thus, the board of directors may have a duty to act once board members learn of a sex offender living within the community.

A pandemic flu is a global outbreak of disease originating from a new flu virus. Since most people have little or no natural immunity to these new flu strains, pandemic flus are likely to be more severe than seasonal flus with greater risk of hospitalization and death.

In these challenging economic times, some condo associations are stretched to think of new ways to offset dwindling assessments. One potentially lucrative option is to lease rooftop space for antenna installation. The proliferation of cell phones, broadband, paging, wireless Web, and related technologies has driven the demand for wireless companies to increase their coverage areas and data transmission capacities.

When their son was deployed to Iraq, members installed a flagpole outside their home to fly the American flag. Both federal and Colorado law guarantee residents the right to display the American flag, but allow restrictions on the method and size. Federal law says nothing about flagpoles, while state law allows homeowners associations to regulate…

If your community is considered housing for older persons or senior housing, it is entitled to an important exemption under the Fair Housing Act (FHA) that allows your community to discriminate against families with children.

Associations produce audited financial statements so that members, prospective buyers, and lenders can assess an association's financial condition. If an association's finances are mismanaged, prospective buyers may have a difficult time getting loans and may look elsewhere for a home. This ultimately may reduce home values in the community in an already difficult economic climate.