My condo community was neglected and mis-managed for many years.
For over 10 years, there was no working rental cap in effect, even though it was in our bylaws. The community was overly transient, with more than 50% of the units rented.
The previous board of last year passed a resolution (about six months agao) that the community would begin to move toward a goal of 70% owner occupied units. In the state of Virginia (where I am located), in order to qualifiy for FHA loans you must have 51% of the units owner occupied.
However, The new board (installed 5 months ago) has reduced the rental cap to 51%. They say that if we have a 70% rental cap in place, but only have less than 70% of the units owner occupied, then the community will not be eligible for FHA loans.
Is this true? I thought we could have a 70% rental cap and be working towards that goal but as long as the owner occupied units did not fall below 51% we would still be eligible for FHA loans?
Please drag open the comment box from right bottom corner to make it larger.
Please note that blog comments and postings are not legal advice, rather only the opinions of our readers.