NEW HOA DISCLOSURE REQUIREMENT (March 2016)

Beginning July 1, 2016, Civil Code section 5300 of the Davis-Stirling Common Interest Development Act will require Associations of condominium projects (but not other types of common interest developments) to include in their annual disclosures a statement describing the development’s status as a Federal Housing Administration (FHA) approved condominium project and a federal Department of Veterans Affairs (VA) approved condominium project, including whether the development is an approved condominium project. The statement must be in at least 10-point font and on a separate piece of paper for each the FHA approval status and the VA approval status.  The statutorily required language is as follows:

For the FHA approval status:

“Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owner’s ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.

This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.”

For the VA approval status:

“Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owner's ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.

This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.”

 

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