Now, as I was saying about the requirements for the mass merchandising of homeowners associations, and the covenants and laws necessary for this to take place. The individual property rights of the homeowners were secondary, and denied as necessary for the HOA’s survivlal. See The Foundations of Homeowners Associations and the New America and short author interview video on New America.
Now, homeowner protections are being put into place not to restore American democracy, but to protect the lenders. With sensible regulation rather than laissez-faire “anything goes” to sell, sell, sell, will HOAs be such a “good thing” anymore?
From NuWire Investor —
New Fannie Mae Condo Regulations Could Stifle Condo Demand
Here is a brief overview of the Fannie Mae condo guideline changes:
* For new construction and newly converted condo developments, 70% of the units must be pre-sold (closed or under contract). This is being increased from 51%.
* No more than 10% of a project can be owned by a single entity.
* The homeowners association must have at least 10% of its budgeted income designated for replacement reserves and adequate funds budgeted for the insurance deductible. * No more than 15% of a condo project units can be more than 30 days delinquent on condo fees
HOA Constitutional Government 