It is hard to believe six months have passed since our first publication. Our summer was busy with our very successful software conversion! We hope you have enjoyed the new reporting formats and functionality. Coming soon, we will be launching the Web Portal to allow homeowners access to their accounts with the ability to make online payments. Following this release will be the board access to online approval of invoices and automated check processing. We are excited about these new offerings for our clients, and look forward to hearing your feedback once they are implemented.
Sincerely, Linnea & Stacie
New FHA Regulations
The Federal Housing Administration (FHA) has issued new condominium insurance regulations originally scheduled to be implemented October 1st. Due to serious backlash from our industry, implementation has been delayed to November 2nd and most recently to December 7th. Though delayed, these regulations are not going away and will significantly impact the association industry. The basis of the regulations will change the approval process and the criteria used to determine if a mortgage for a unit in a condominium association qualifies for FHA mortgage insurance. Once the association goes through the comprehensive approval process, the approval will expire two years from the date of issuance causing the association to go through the process again.
A few of the proposed regulations are as follows:
- 50% of the units must be owner-occupied
- No more than 15% of the units can be 30 days past due on their assessments
- Annual reserve study required (current Civil Code requirement is every 3 years)
- Reserves must be at least 60% funded
The only alternative to non-compliance would be for boards to decide they don’t need the association to be FHA approved. However, this could seriously impact the resale ability and values in the development.
Don’t Miss This Event!
Join us for CAI’s Mini-Expo Nov 14th
CAI’s Bay Area and Central California Chapter is hosting their first education conference and mini-expo in over 10 years! This program will be focused on adapting to today’s changing economy. The keynote speaker for this event is Will Durst, a well known political satirist and comedian. He will be sure to keep you laughing through lunch and beyond!
CFM will have a booth at this event, please come by and say hello. For the first three board members to send me an e-mail at firstname.lastname@example.org, CFM will register you as their guests. We hope to see you there!
“Well informed and easy to work with”
“CFM has managed the boat slip owner accounts at PIER 39 marina for over 15 years. They have kept excellent records, and provided courteous professional service to our slip owners and marina management staff. They have proved to be adaptable and cooperative whenever we required changes or upgrades to improve our business. Stacie, Linnea, and their staff are well informed and easy to work with.”
PIER 39 Marina
See what our other clients are saying about us, click here
Franklin Award Recipient
The Franklin Award is a company reward of a $100 bill given to one employee per quarter in recognition of an outstanding achievement or extraordinary task completion. They can be nominated by their fellow employees, by a homeowner, board member, or colleague. The Franklin Award winner for 3rd quarter 2009 is Lynn Lopez, our financial services team leader, in recognition of her great customer service skills and client retention.