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GSLegal Update 

 
Government Shutdown Opens Questions for Associations
 

With federal services ground to a halt, you may be wondering what effect the government shutdown will have on community associations. In response, we at GSL would like to share this bulletin to our clients and colleagues:

  • The Federal Housing Authority (FHA) will not be able to approve any condominium projects during the shutdown.  So, if you are waiting for your association to be certified or recertified, there unfortunately will be a delay (though this does not apply to single-family home mortgages.)
  • Obviously, this may impact owners’ ability to sell their units. However, it does not appear that this will affect FNMA mortgages.
  • Only 67 of 349 FHA employees will keep working during this time.  During the shutdown, the agency will focus on single-family homes, setting aside applications for multi-family dwellings, which are the loans that concern condominium associations.
  • It will be business as usual for borrowers seeking loans guaranteed by Fannie Mae and Freddie Mac, which together own or guarantee nearly half of all U.S. mortgages and 90% of new ones.

While we don’t know how long the shutdown will last, we will try to provide you with updated information as we learn about it.  Meanwhile, for other legal issues related to community associations, please visit us at www.goshlaw.com

You may also email Attorney Shapiro at shapiro@goshlaw.com.



Goodman, Shapiro & Lombardi, LLC

www.goshlaw.com

Massachusetts:
3 Allied Drive,
Suite 107
Dedham, MA 02026-6148
Phone: (781) 251-9800
Rhode Island: 
14 Breakneck Hill Road, Suite 203
Lincoln, RI 02865
Phone: (401) 455-0420
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GSLegal Update
August 2013