Published on: May 13, 2020
The Federal Housing Administration (FHA) has recently adopted policies that will approve for financing a single unit in a Condominium. However, to obtain such approval, Associations will be required to fill out a questionnaire – such as the sample below. This questionnaire establishes that a completed certificate containing a false statement may subject the person completing it to monetary penalties and imprisonment. Consequently, we strongly advise Board Members and Property Managers to NOT sign these certifications given the exposure to these penalties for wrong answers. We understand that the questionnaire may also include a request for a Resolution of Financial Distress Event which may not be applicable or accurate. We recommend that lenders ask you specific questions and sign their own documentation. Again, in our opinion, these certifications are a serious concern and you are cautioned to not sign any such documents without a complete understanding.
Please contact Stephen Marcus at email@example.com or 781-413-5226, if you have any questions.