Kenneth R. Harney - FHFA's proposed ban on private transfer fees could cost homeowners

Kenneth R. Harney - FHFA's proposed ban on private transfer fees could cost homeowners: "Andrew Fortin, vice president of government affairs for the 30,000-member Community Associations Institute, which represents homeowners and association managers nationwide, said that banning investments in mortgages on properties with transfer fees payable to associations 'is potentially a big problem.' Among other negatives, it could force associations to increase annual assessments on individual homeowners.

Fortin said his group 'shares the concerns of FHFA about programs that create neo-feudal arrangements' with outside investors, but believes the agency needs to better distinguish between profit-motivated transfer fees and those that benefit public interest and nonprofit organizations."
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Thanks to Fred Pilot for the link. CAI seems to want to protect HOAs power to assess transfer fees. Fred predicted they would take that position, by the way.

Homeowners group targets HOA transfer fees in Colorado - The Denver Post

Homeowners group targets HOA transfer fees in Colorado - The Denver Post: "Community managers have never justified this fee," said Stan Hrincevich, president of the Colorado HOA Forum, who calls the charges "costly" and "unwarranted."

Hrincevich said he has seen transfer fees ranging from $50 to $500 or more and estimates they average about $200 per sale.

He argues that transfers should be handled as part of existing administrative costs, given that they usually involve nothing more than a form letter drafted from existing HOA records.

Hrincevich said his group is working with state Rep. Jeanne Labuda, D-Denver, and state Sen. John Kefalas, D- Fort Collins, on a bill that would either eliminate the transfer fees or cap them at $50.

Highlands Ranch resident Stan Hrincevich is determined to push back on HOA transfer fees.

Highlands Ranch resident Stan Hrincevich is determined to push back on HOA transfer fees.: "You are about to sell your house in a local planned community. All the paperwork is ready. You notice a single line item charging you $350, labeled as a transfer fee for “unreimbursed expenses” incurred — usually by your homeowners association’s property management company — during the transfer of the home to a new owner. You don’t get a receipt and you cannot finalize sale of your home if you don’t pay it.

A few hundred dollars in a transaction typically dealing with hundreds of thousands of dollars might not seem like a big deal. But for Highlands Ranch resident Stan Hrincevich the scenario is an injustice that bilks Colorado homeowners out of millions of dollars."

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Thanks to Robert in Colorado for this link. I've posted on this issue before and a number of people have identified transfer fees as a suspect practice that shovels money to property managers who (it is argued) don't do much to earn the fee. Let the comments begin!

Homeowners want changes to HOA transfer fees - 7NEWS Denver TheDenverChannel.com

Homeowners want changes to HOA transfer fees - 7NEWS Denver TheDenverChannel.com

Ka-ching, ka-ching, goes the cash register at the property management firm.

Private Transfer Fee Covenants | TradingMarkets.com

Private Transfer Fee Covenants | TradingMarkets.com: "The Federal Housing Finance Agency (FHFA) is proposing to issue a Guidance, 'Guidance on Private Transfer Fee Covenants,' to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), and the Federal Home Loan Banks (the Banks) that the entities it regulates should not deal in mortgages on properties encumbered by private transfer fee covenants. Such covenants appear adverse to liquidity, affordability and stability in the housing finance market and to financially safe and sound investments."
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This is a notice of a proposed rule change. Fred Pilot sent it along, with a note that CAI will probably oppose it. I keep hearing about HOAs and condos that are levying these private transfer fees.

Texas homeowners call for state AG investigation of community association industry

Austin – As Incidences of possible attorney malfeasance and hostile actions by property management associations are being reported almost daily, the need for more than legislative change is clear.

Home Owners for Better Building will be asking the House Business and Industry committee as well as other lawmakers to request Attorney General Greg Abbott to investigate Home Owners Associations (HOA’s), the property management industry and its attorneys.

As HOA foreclosures rise substantially and the economy worsens, the property management industry seeks to further enrich themselves during this session on the backs of homeowners with clever legislative lobbying ideas that expand unearned transfer fees, processing fees, and mandatory contributions to developer foundations, etc
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This is a shot across the bow of Privatopia in the Lone Star State that could gain momentum on anti-corporate and lawyer sentiment.

Sleazy Real Estate Developers' Latest Scam Could Skim 5 Percent Off Your Home's Value | | AlterNet

Sleazy Real Estate Developers' Latest Scam Could Skim 5 Percent Off Your Home's Value | | AlterNet

And of course they are talking about private transfer fees, as we have been doing here for some time.

CNNMoney.com: The latest real estate rip-off

Here's an item appearing in CNNMoney.com that suggests the community association industry and other backers of residential property transfer fees are going to face PR and political headwinds on this issue, which was spotlighted on this blog several days ago.

Half dozen Arizona bills limiting HOA powers become law

Arizona homeowners associations are losing a few more of their powers.
They can no longer ban political and real-estate signs, flagpoles or parking on public streets, according to six bills signed into law by Gov. Jan Brewer. And association boards can't restrict political activity in public areas, force residents to buy "approved" signs, ban the "tea party's" Gadsden flags or charge more than $400 in HOA "transfer" fees on a home sale.

FloriDUH: HOA charging $600 for a mailbox

FloriDUH: HOA charging $600 for a mailbox

Now the association is trying to turn the neglected neighborhood around by charging fees to new buyers lured by low home prices. They think homeowners who didn't pay mortgages or dues for years should not be allowed to just walk away and leave behind an eyesore, reports TBO.com.

The community started charging buyers a $400 transfer fee, then a $225 fee to release liens against the property. There is also a $250 charge to prepare a letter detailing the fees owed. If buyers or sellers opt to do the work themselves, there is a $75 fee for the association to review the work, reports TBO.com.

And $600 for a mailbox.