New FHA loan rules for Oklahoma unit ownership estates (condominiums)

One result of the recent real estate troubles has been a heightened scrutiny of condominium loans. A result of this scrutiny is FHA revising, and re-revising, and putting on hold the rules that apply to approval of mortgages for condominium developments. Under the proposed rules, all FHA approvals for condo projects will expire every two years. Another aspect is some percentage limitation of FHA loans within the development, although the actual percentage doesn't seem to be fixed as yet. Also, the new rules will contain some minimum owner-occupancy requirement, which will be good news to many in projects that have started down the path of investor-controlled developments.

For a review of the initial rule, and then the subsequent rule, see Mortgagee Letter 2009-46A and Mortgagee Letter 2009-46B.

Matthew L. Winton, Oklahoma community association lawyer.

If your community association operates a swimming pool or spa, you should already know about the Virginia Graeme Baker Pool and Spa Safety Act

If your community association does operate a swimming pool or spa and you are not aware of the federal Virginia Graeme Baker Pool and Spa Act, you need to familiarize yourself with the Act and its mandatory requirements. The Virginia Graeme Baker Pool and Spa Act (named after former secretary of state James Baker's granddaughter who drowned because of a spa drain in 2002) was adopted in 2007 and is effective for all "public" pools and spas December 19, 2008. The Act includes condominium, homeowner association, and neighborhood swimming pools within the definition of public. The pool/spa must be compliant with the act before opening. Essentially, the Act requires existing pools to be retrofitted with certain drain anti-entrapment devices, and new pools must be constructed with such devices. The Act specifies the minimum requirements.

Should a pool/spa open in violation of the Act, severe civil penalties may be levied against the community association. Contact a qualified pool technician versed in the requirements of this Act before opening your community association pool this season.

Matthew L. Winton, community association attorney

Handouts for February 21, 2009 Edmond Summit – HOA Legal Issues Breakout sessions

On February 21, 2009 from 8:30 a.m. to noon, Edmond Neighborhood Alliance will be hosting their annual Edmond Summit at the MAC at Mitch Park in Edmond, Oklahoma, which is co-sponsored by the City of Edmond and Edmond Economic Development Authority. I will present two 40-minute breakout sessions on community association issues. Time will be saved for audience questions and we will discuss topics such as:

• Amending governing documents

• Conflict resolution

• Collecting assessments

• How to enforce structural and use restrictions

Handouts for the two breakout sessions may be viewed here.

Matthew L. Winton, Esq.

Vaughn, Winton & Clarkpllc

3233 East Memorial Rd., Suite 103

Edmond, Oklahoma 73013

mlw@vwlaw.net

405.478.4818 office

405.478.4819 fax