Keep up on the latest House and Senate Bills.
•H.R. 3700 was introduced for the purpose of reforming the process utilized by FHA to certify condominium associations. On July 29, 2016, H.R. 3700 was signed into law by President Obama. H.R. 3700 has been supported by CAI and considered a much needed change in the industry.Key changes set forth in H.R. 3700 include the following:
- Requirement that FHA modify its certification requirements for condominium mortgage insurance to make recertification’s substantially less burdensome than original certifications.
- The FHA must consider lengthening the time between certifications for approved properties and allowing information to be updated rather than resubmitted.
- A HUD field office must make decisions regarding exemptions to current FHA commercial space requirements and must consider factors relating to the economy of the locality in which the project is located.
- The FHA must issue guidance regarding the percentage of units that must be occupied by the owners (or sold to owners intending to meet such occupancy requirements) in order for a condominium to be eligible for FHA mortgage insurance.
Now that the bill is officially law, the FHA will begin its implementation, which will involve changes to FHA regulations and existing agency guidelines.
•SB 1237 The provisions of the Colorado Common Interest Ownership Act (CCIOA) authorize the creation of common interest communities to be governed by unit owners’ or homeowners’ associations (HOAs). Currently, there are approximately 16,000 common interest communities or HOAs in Colorado. During the 2012 legislative session, the General Assembly considered one piece of legislation concerning records maintained by an HOA and access to such records. House Bill 12-1237, which takes effect January 1, 2013, identifies a list of the records that must be maintained by an HOA concerning the finances, board meeting minutes, and other affairs of a common interest community under CCIOA. This bill also allows homeowners to access these types of records.
•HOUSE BILL 13-1276 Concerning limitations on the actions a unit owners’ association under the “Colorado Common Interest Ownership Act” may take against a unit owner with respect to the collection of debt owed to the unit owners’ association. The House Bill 13-1276 act takes effect January 1, 2014; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.