Congressman Fitzpatrick Addresses CAI-FHA Concerns

Jun 6, 2012
CAI's legislative action committees, at the Federal and state levels,  continue to work hard to improve recent changes to FHA  regulations on project approvals for condominiums.

Recently, Congressman Mike Fitzpatrick (R-PA-08) of Bucks County recently met with Stefan Richter, Esquire, Chair of CAI's Pennsylvania Legislative Action Committee, to discuss the “real world” (local and national) impact of FHA’s condominium financing approval standards.  The Congressman was very interested in anecdotal evidence of the burdens these requirements have placed on condominium associations, owners seeking to sell or refinance, and potential condominium unit purchasers.  Of particular concern is that FHA exercises no discretion to make exceptions from their rules, leading many associations to become ineligible for FHA approval.

Among the items of discussion with Congressman Fitzpatrick were assessment delinquency standards, reporting and verification requirements, owner-occupancy limitations, and commercial space restrictions.  With the help of CAI National, members of the PA LAC were instrumental in having Congressman Fitzpatrick draft a letter to FHA, seeking reasonable amendments to FHA’s condominium rules.   The letter was jointly submitted to the Secretary of Housing and Urban Development by Congressman Mike Fitzpatrick and Congressman Emanuel Cleaver (D-MO-05) and has so far attracted 50 co-signers in the US House of Representatives. Read a copy of the letter from Congressman Fitzpatrick to HUD Secretary Donovan.

CAI will continue to work to address these issues.

 


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