New FHA Guidelines and Approval Process for Community Associations

On December 7^th, 2010 the Federal Housing Administration (FHA) announced the NEW expiration dates of their Condominium/Homeowners Associations Project Approvals and Re-Certifications. These new expiration dates will affect Community Associations and Unit Owners throughout the country.

It is recommended that all Community Associations wishing to obtain FHA Certification begin the lengthy application process as soon as possible.

In recent weeks we have received many questions about the FHA Certification process. A majority of the questions we receive have been regarding the length of time that it will take to get a community project approved by the FHA. We have also received a number of questions on the possible pros and cons to FHA Certification, as well as concerns on the differences between the FHA new project approval and the project re-certification process.

The FHA has set the following deadlines for community project approvals. Due to the large number of communities nationally, it is important to remember that time is of the essence in order to avoid the potential delays in application processing. 

Initial Project Approval Date	New FHA Expiration Date
1972 - 1985	December 31, 2010
1986 – 1990	May 31, 2011
1991 - 1995	July 31, 2011
1996 – 2000	August 31, 2011
2001 - 2005	September 30, 2011

Although it may seem simple, a very common question we get asked is why go though the process and why get certified? The answer is quite simple. It is estimated that approximately 40% of all new loans will be insured by the FHA. The FHA has the most aggressive loan programs in the market and without them the owners of the properties within the association would be at an EXTREME disadvantage when it comes to selling and/or refinancing their homes. Not being FHA approved would obviously drive property values down in your neighborhood. 

Community Board Members are encouraged to begin the approval or recertification process as early as possible, as it is still uncertain if any further extensions for project approvals will be granted.

Fortunately, we have been helping Condominium Association communities get FHA approvals since the new guidelines have been in effect. We’ve successfully helped many Associations obtain FHA Recertification or FHA New Project Approvals and we recommend that all Associations begin the process or recertification immediately. 

Do not hesitate to contact us with any questions about these deadlines or the FHA application process. We look forward to the opportunity of getting your Community Association approved by the FHA.

8 Tips for Communicating with Your Community Association

How you view a condominium or homeowners association is going to depend on what you have heard and what you believe. Some people think that community associations are the best form of residential living because the association is responsible to provide services that you would normally have to do yourself. On the contrary, some people believe that homeowner's associations are not a good idea because the people who make up the board and management have a reputation for being power hungry and that they usually do not care about the general upkeep of the property.

In order to assist you in communicating and dealing with the common misconceptions of community association living we’ve prepared our 8 Tips for Communicating with Your Community Association.

Tip #1:
You need to communicate with the board and management. If you do not communicate, you are never going to have a good relationship with them, nor will your opinion ever be heard. Never hesitate to ask questions or to question what the board is doing, but you do need to remember that in order for your opinion to be heard you must maintain a courteous and positive communication level.

Tip #2:
Get involved with the association and participate. In order to maintain a positive relationship with your association you are going to need to get involved with the board. This can be as simple as attending membership meetings and voting when necessary. You can also attend the monthly board meetings, join or form a committee, or even become a board member. There are many ways to get involved with your association which can help you maintain a positive relationship with the association and management.

Tip #3:
Never assume that the board or management does not care. It’s important to remember that the board and management will always consider any circumstances that affect property maintenance, violations, or anything else that can negatively affect the community. However, unfortunately, there are always matters out of their control that may be cause for delay. Additionally, the board and management may not always have a realistic understanding of the urgency of some items, therefore, it’s important that you maintain constant communication with them about what is going on so that they can work with you on the issue.

Tip #4:
In order to fully understand what the association is and what they do you need to take the time to learn about them. There are numerous things that you can do to learn about an associations including reading books, attending board meetings, and attending educational seminars. By learning about the associations, you will find out that although some can be power hungry, most associations work hard to make their community a great place to live.

Tip #5:
Always expect the best out of your association. Remember that the board is made up of your own neighbors, who want the best for their community. Since you are paying for the services you should expect the best, if things aren't going as expected make it a point to talk to your board or manager to see if things can be changed, but be prepared to provide specific issues and examples that can be addressed.

Tip #6:
If you have something that you want to take up with the board or management be sure to plan ahead. The reason for this is that time is needed to research and to respond to your requests and questions. By giving plenty of notice, they can provide you with the best answers and assistance.

Tip #7:
Learn to appreciate your board. The board members are there to help you resolve problems and to fix things for the best of the entire community. Board members do not get paid for their positions, they simply volunteer what time they have to serve the community.

Tip #8:
If you do not like how things are going then you need to do something to help change it. By running for a position on the board you can start making the changes that you feel are necessary. You can also begin to make your board or management aware of what you think is needed to make positive changes. In order to better serve the community, they are always welcoming feedback and input on what is going on throughout the community.