FHA Proposes Rule Restricting Reverse Mortgages in Super Lien States

Recently proposed changes in FHA lending programs and guidelines could have drastic effects for 22 states (including Colorado) and the District of Columbia. The proposed reforms would restrict owners’ eligibility for Home Equity Conversion Mortgages (i.e., reverse mortgages) in states where community association liens are provided “super lien” status. If enacted, the revised rule states that “as a condition for a HECM to be eligible for loan assignment, that the HECM mortgage be in a lien status prior to homeowners association and condo association liens.” The result would be to eliminate associations’ current priority lien status over mortgages and deeds of trust and would effectively eliminate homeowners’ ability to obtain a reverse mortgage in super lien states. The proposed changes appear to be directly targeted at states with priority lien statutes. State super lien statutes provide important protections and benefits to owners, associations, and lenders. The propose rule changes are currently available for public comment.

Continue reading

Compromise Reached on Federal Amateur Radio Bill H.R. 1301

In the waning days of May, CAI and HAM Radio Lobbyists worked with together with Federal Legislators to reach a compromise on H.R. 1301 concerning outdoor amateur radio antennas and services in residential communities. The revised bill requires the FCC to enact rules prohibiting private land use restrictions, including restrictive covenants found in almost every declaration, banning installation of outdoor antennas on property exclusively owned by an amateur radio licensee or which otherwise precludes amateur radio service communications. The FCC rules will mandate that the radio licensee notify and seek prior approval from their Association before installation of any outdoor antenna. Additionally, Associations will still be allowed to prohibit antenna location on common areas and enact reasonable rules concerning the height, location, size, and aesthetic impact of, and installation requirements for the outdoor antenna and support structures.

Continue reading

CD Reform is Dead Again, So What’s Next?

After negotiations collapsed last week over proposed statewide construction defect legislation, the future of construction defect reform remains to be seen. What is clearly evident, however, is that many cities and local municipalities are not afraid to take matters into their own hands. But how effective are local ordinances?

Continue reading

Unmatched Property Damage Exclusion

Recently we learned that a nationwide property insurer has adopted an additional endorsement which becomes part of the association’s property insurance policy upon its renewal.

Continue reading

Will Assessments Become Tax Deductible?

On March 3, 2016, two members of the House of Representatives from California introduced H.R. 4696 which would amend the tax code to allow certain homeowners to deduct homeowner association assessments.  The act, called the “Helping Our Middle Income Earners Act” or “HOME Act” would allow homeowners earning $115,000 or less to deduct up to $5000 in regular assessments related to their primary residence from their federal taxes.  The bill has been assigned to the House Ways and Means Committee.

Continue reading

Orten Cavanagh & Holmes, LLC
Copyright © 2019 Orten Cavanagh & Holmes, LLC.
Disclaimer

Denver

1445 Market Street, Suite 350
Denver, CO 80202
Main: 720-221-9780
Fax: 720-221-9781

Colorado Springs

14 N. Sierra Madre Street, Suite A-1
Colorado Springs, CO 80903
Main: 719-457-8420
Fax: 719-457-8419

2019 Platinum.jpg

cai silver horizontal.jpg