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The Federal Housing Finance Agency (“FHFA”) recently published a Notice of Proposed Rulemaking directing Fannie Mae, Freddie Mac and the Federal Home Loan Bank System to regulate transfer fees paid to common interest community associations. While the revised FHFA draft will allow community associations to continue to use deed-based transfer fees (i.e., capital contributions, condo fees, flip taxes, etc.) to fund association operations, the rule would still allow FHFA to limit how associations use the income generated by such fees.
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In these tough economic times, the delinquent monthly payments of homeowners’ special assessment fees, HOA fees, maintenance fees, and/or condo fees have become more and more of an impediment to an Association’s ability to remain self-sustaining and pay its every day expenses to maintain its common elements and address any construction defect claims that may arise.
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Five of the country’s largest banks recently received a list of demands from state attorneys general with respect to their foreclosures due to mortgage default. If the banks give in to the government’s demands, common interest community associations will only be further burdened by owners of homes and units that are delinquent on paying their monthly special assessment fees, HOA fees, and/or maintenance fees.
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The Federal Housing Administration (FHA) just extended the deadlines for condominium projects seeking to renew their FHA certifications. New guidelines established by the FHA in 2009 require that condominiums be re-certified and approved every two years. According to the FHA, all condominiums that received approval before October 1, 2008, were supposed to be re-certified by December 7, 2010. However, the deadline for approval has now been extended.
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The Supreme Court of New Jersey addressed the topic of restricting religious symbols and/or flags from Associations in A Committee For A Better Twin Rivers, v. Twin Rivers Homeowners’ Association. In the Supreme Court’s decision, authored by Justice John E. Wallace, Jr., the Court determined that even in light of New Jersey’s broad interpretation of its constitutional free speech provisions, the “nature, purposes, and primary use of Twin River’s property was for private purposes and did not favor a finding that the Association’s rules and regulations violated plaintiffs’ constitutional rights.”
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GMAC Mortgage, Bank of America and JP Morgan Chase, three (3) of the country’s largest and most troubled home lenders, recently announced that they were imposing a moratorium on their default mortgage foreclosures as they tried to ensure they were correctly executed.
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