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Prevent Your HOA From Being Sued



Can A Homeowner Association Be Sued For Not Getting Their Condominium Community FHA approved? 

Up until a few months ago the answer would have been an emphatic NO but times have changed.

In 2013 a single
mother from Ohio filed a claim against a HOA board declaring that, because they had let their HUD approval lapse, that they where discriminating against her. Her point was that by the board not formally considering seeking certification for FHA financing the HOA board opened themselves up to a civil rights claim.

Her contention was based on the fact that in 2012 a large percentage of minorities used FHA financing to purchase their homes. In fact 51 percent of African-American and 50 percent of Hispanics used FHA financing for home financing. Her point was that because the HOA Board did not seriously consider renewing their FHA Approval they were in violation of the Fair Housing Act. These civil right claims are not limited to just minorities but apply to all protected classes under the Fair Housing Act.

The claimant could also have based a claim on Disparate Impact”. This is a controversial legal theory that does not require discriminatory intent but only disproportionately negative effect of a policy, activity or purposeful inactivity. This is a claim that seems to be in favor with the current administration.

The board did decided that they were not going to pursue FHA approval and while it is OK to not be FHA approved if a claim is made the courts will look for proof that the Home Owners Association rejected FHA approval based on a thorough review of all pertinent facts and costs. The HOA must show that they made their decision in good faith and not because they wanted to exclude a certain type of potential buyer by not offering FHA financing.  

This impacts condominium complexes because HUD, which is the regulatory agency for the FHA, will not allow any unit in the community to use FHA financing until the entire complex has passed the FHA certification process. Because of the changes in HUD/FHA requirements that went into effect in late 2009 a lot of condo complexes have decided not to became or stay FHA approved and thus they are leaving themselves open to lawsuits. For a more in-depth look at this issue please click here.     

There is a cheap and easy fix for this problem. The HOA Store sells a "Prevent Your HOA From Being Sued" package that should satisfy the requirements to "Formally Consider Acquiring FHA Approval" for any Homeowners Association. 

After you complete our detailed discussion package you send us a copy of the information. We will do a thorough review and then send back our written 
analysis of the chances of HUD/FHA approving your complex and the estimated costs that you would incur to make you condos FHA compliant. With this information you can make an informed decision regarding whether you want to get your community FHA approved or not and the paperwork to back up whatever you decide. 

If you follow the easy to use directions you will cover all your bases and should be in a very strong legal position to stop any litigation before it even starts. 

The "
Prevent Your HOA From Being Sued" package comes with:

1 - A detailed Guide that will lead you through a formal discussion regarding FHA Approval for your Condominiums. This guide contains all the pertinent questions regarding FHA Approval for your HOA and the HUD/FHA Requirements for each discussion point. 

2 - Our in-depth analysis of the pros and cons of obtaining FHA approval for your complex.

3 - A written assessment as to the cost of getting your condominium FHA approved if you should choose to do so.

4 - An example of the information to include in your HOA Board Meeting records to show that the board did indeed debate the pros and cons of FHA approval and how they came to their decision. 

The cost of this package is $99.99 plus your choice of shipping - Email is, of course, free.

Please use the PayPal "Add To Cart" button below to purchase this solution. 

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The HOA StorePrevent Your HOA From Being SuedAsk A Question About Your HOAGet Your Condos FHA or VA ApprovedHire A FHA or VA Mortgage Specialist Our Terms Of Use and Privacy PolicyContact The HOA Store