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Can Arizona management company help to resolve HOA zoning issues?

In attempts to sell my condo last summer, I was getting feedback that it could not be financed.  After calls to county assessor/planning zoning to see if there were issues on the deed/zoning to verify that it was not listed as resortel, condotel or non warranty deed. The assessor confirmed that I hold a Warranty Deed and that it is zoned Multi-residential. (I had heard from realtors that it could not be financed due to everything from Blue Sky to Non Warranty Deed or it is a condotel/resortel.)

I reported the information to the HOA Board and management company during an HOA meeting and asked that they assist in resolving the issue of equity/property values and to obtain the information for Fanny Mae backed financing for FHA. The meeting was to vote on special assessment to increase the reserve fund for building improvements.

During the meeting, I discovered that there was one owner that had 14 units being rented out in a commercial manner and another 10 units being rented/managed by realtor. I contacted county assessors office and they have no recorded of any rentals reported/recorded in the building period. I'm concerned trying to have the HOA Management to assist in correcting multiple issues to resolve for Fanny Mae approval.

Also, is it legal for an investor to purchase private multi-residential units and then operate as commercial? What can our HOA/Management Co. do to force the renting out of units in a commercial manner, if our current CCRs do not reflect articles to cover over/wrongful renting to preserve the property values/ability to obtain financing. Need help in Arizona


Who is responsible for condo association fees on foreclosed units?

Our Ohio condo association has a foreclosed unit that sold at auction on 2/21. The bank was the buyer. We initiated billing for condo association fees and they made one payment, but it was short of the amount owed. The bank then transfered control to Fannie Mae. A Fannie Mae representative contacted us for billing info and told us we would receive timely payments every month effective 4/23. We provided the data and they forwarded it to their agent, which turns out to be the bank that was initially in control.

We have still not received any other payments and it is currently 3 months behind. The property was listed and has sold. We don’t know a closing date yet. We are concerned that once the new buyer closes we will never see our past monies from the bank or Fannie Mae. Can we do anything to bind the closing pending full payment of the monies owed to us. We are already 18 months short on this property.


Are you aware of new Freddie Mac/Fannie Mae insurance guidelines?

Our Condo Board informed unit owners that Freddie Mac and Fannie Mae have established new insurance requirements for condo loans. Effective immediately residential condo properties must be insured for 100% of the estimated replacement cost. We have also been advised that our condo, like most condos, is insured on a shared cost basis of “80%/20%”, with the 20% being the condo association. Apparently, the Board became aware of this when an owner informed them that a sales contract had been turned down for this reason. To support the owner they increased the insurance coverage. Obviously, this is going to bump up our insurance costs. Are other associations aware of this change? What are the pros & cons for taking this action? Are there options, other than full compliance, to qualify for these loans?


Does FHA require up to 50% of condo units for rent?

I live in a 12-unit condominium. Two years ago I spent almost four months getting everything required for FHA approval. Now we are trying to renew. The only things that have changed are our budget (obviously) and the fact that we currently have two units for sale. We have never allowed leasing or renting of units unless the board approved this for a hardship situation (except to immediate family members) . Now we are being told that we MUST allow up to 50% of the units to be leased/rented. This doesn't seem to make sense to us. We have found the following source as one reference: http://www.cohoalaw.com/from-capitol-hilllegislation-hud-relaxes-leasing-restrictions-for-fha-approval-of-condominium-projects.html Does anyone have any information that might help us? I would think that an owner-occupied building would be a better circumstance.

Do Freddie Mac/Fannie Mae rules control condo association dues?

We are a 40 unit association run by a volunteer board. We spent quite a bit of money with a lawyer regarding our FHA review and have finally received FHA approval again. Recently, our condo president was told that if a condo is repossessed, we can only ask for 0-6 months in assessment fees due to Freddie Mac/Fannie Mae guidelines. In the past we have been able to receive most of our money back, either from the bank or from the eventual individual buyer. Does anyone have any information regarding this? I sent emails to our lawyers but haven't heard anything and am sure they expect me to make an appointment and pay for their face-to-face consultation as well as their reply. I am hoping someone has researched this question. Thanks!


Understanding Fannie/Freddie loan rules and small condo building occupancy

I live in a four unit condo building. I have lived here for 14 years and 2 years ago purchased a larger second unit which is now my residence. My initial condo unit is now rented as is one of the other units in the condo association building.


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