Condo Media - October 2016 - 31

HAM RADIO EQUIPMENT
The House Committee on Energy and
Commerce approved the HAM radio
measure, accepting several key changes
CAI had urged. Unlike the original
proposal, which would have prevented
community associations from imposing
any restrictions on radio antennas, the
revised bill requires radio operators
to obtain association approval of their
installations, prohibits operators from
locating antennas on common property,
and specifically allows associations to
establish reasonable rules regulating the
installation of outdoor radio antennas.
The House was expected to vote on
the amended legislation this fall, but
CAI officials say they aren't sure the
Senate will get to it on a legislative calendar shortened by the election.
FHA CONDOMINIUM RULES
The National Association of Realtors
(NAR) put its massive lobbying heft
behind the Housing Opportunity bill,
joining CAI in arguing that the FHA's
existing requirements for condominium
loans limited their availability, particularly for first-time buyers. The legislation,
enacted unanimously by the House and
by unanimous consent in the Senate,
requires the FHA to streamline its recertification process for condominiums,
making it less extensive and less burdensome than the initial certification process
condominiums must complete to make
homes in the community eligible for FHA
financing. The new process should allow
associations simply to update information they have already submitted, rather
than re-compile and submit it anew, CAI
officials say. The legislation also:
■ Reduces the FHA's owner-occupancy

requirement from the current 50
percent to 35 percent of the units in a
community;

■ Allows lenders to approve FHA

condominium loans in communities
in which more than 25 percent of the
space is commercial, without obtaining a waiver from the FHA; and

■ Directs HUD to adopt the Federal

Housing Finance Agency (FHFA) policy
on transfer fees, allowing the FHA, like
Fannie Mae and Freddie Mac, to approve loans on units in condominiums
that impose those fees. The change in
the transfer policy represents a significant victory for CAI, which has lobbied
for it unsuccessfully for several years.

While enactment of this law is "important," Dawn Bauman, CAI's senior
vice president of government and public affairs, said, it does not completely
lay to rest industry concerns about how
the FHA treats condominium loans and
condominium communities.
PRIORITY LIEN: "THE REAL TEST"
"The real test," she said in a press
statement, "is the pending release
of the FHA's updated condominium
regulations," which will implement
the directives in the housing bill and

address other FHA condominium
policies. "The benefits of [the Housing
Opportunity legislation] will be swept
away," Bauman warned, "if FHA seeks
to undermine community association
lien priority statutes in this pending...
update."
She was referring to a rule the
FHA proposed recently barring FHA
insurance for reverse mortgages in
states that have enacted priority lien
statutes, giving unpaid condominium
fees priority over a first mortgage in a
foreclosure action.
The proposed rules are designed
primarily to strengthen consumer
protections for reverse mortgages-a
loan program that allows seniors 62
and older to tap the equity in their
home to pay current expenses while
deferring payment on the borrowed
funds until after the home is sold or the
borrower moves or dies. But the priority
lien provision would put FHA-backed

CAI-NE SILVER PARTNER PROFILE

Long-Term Experience
Available in the Short-Term
Legal Counsel That Joins Your Team

Winer & Bennett makes a 55-year history of
exceptional client service available to your
association today. Our MA and NH locations
offer convenience. Our condominium practice
is led by Attorney Gary M. Daddario, a fellow of
CAI's College of Community Association Lawyers. With experience
co-chairing both attorney and legislative action committees for CAI,
Attorney Daddario is accustomed to keeping clients well informed. With
quarterly attendance at board meetings offered at no charge, Attorney
Daddario is committed to quality relationships and proactive guidance.
With partners devoted to various areas of law, Winer & Bennett offers
full-service, high-quality legal representation.
111 Concord Street
P.O. Box 488
Nashua, NH 03061-0488
Tel (603) 882-5157
Fax (603) 882-2694

164 Westford Road, Suite 15
Tyngsboro, MA 01879
Tel (978) 226-6129
Fax (978) 419-4100

Online at www.winerbennett.com

October 2016

31
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Condo Media - October 2016

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