P.O. from New Haven County writes:
Dear Mister Condo,
Last year, my condo association was FHA certified. Now there are new people on the Board and they let the FHA certification lapse. I am trying to get a 2nd Mortgage on my unit and the bank says it is a “no go” because of the lack of FHA certification. That doesn’t seem fair to me. How do I make this new Board get our FHA certification back?
Mister Condo replies:
P.O., I feel your pain, friend. FHA certification, or lack thereof, has become the single largest bone of contention between well-meaning condo Boards and the unit owners they represent over the past few years. FHA certification poses a challenge on many levels but most associations can achieve it and most will benefit from it because it creates happy unit owners who have an easier time buying, selling, or as is the case for you – refinancing their units within the association. The fact that your association was previously certified may work in your favor of convincing the Board to seek recertification now that the previous certification has lapsed. Believe it or not, the Board is under no legal obligation to seek FHA certification. The decision is entirely theirs to make and they may decide not to pursue it. However, that’s what elections are for. If you are well-informed and can convince your fellow unit owners to do so you should elect representatives to serve on your Board who will seek the FHA certification you need to secure your financing. Good luck!