FHA Condo Approval Specialist

Can We Use Reserve Funds for Landscaping During Drought?

Can We Use Reserve Funds for Landscaping During Drought?

fha condo approval reservesWe receive a lot of questions from associations on how they are able to use their reserve funds and still be eligible for FHA condominium project approval.  Up in our neck of the woods in New England, these questions are primarily geared towards excessive costs due to storms, especially during the winter.  This past winter was particularly annoying with bitter cold and high snowfall totals.  Many, if not all, associations ran over-budget due to the storms.  You can read more about that topic HERE.

Currently, California is suffering a severe drought and questions are flowing in regarding use of the reserve funds to cover the costs of maintaining an aesthetic environment and to replace burned out lawns.

Association Reserves, one of the largest reserve study providers in the country, published a very comprehensive article that details the circumstances by which reserve funds can be used during times of extreme drought.  The article is thorough we chose to merely provide the link rather than to attempt to summarize it here.

From an FHA condominium project approval standpoint, a severe drought is an exceptional circumstance that is beyond the control of the association.  If budget overruns do occur, they must be explained and there is a great chance that FHA will ask for previous years financials to demonstrate that the association does not consistently operate at a loss.

We have assisted many association to get certified with FHA that have posted such losses due to rare circumstances such as this.  FHA understands that associations work to budget for common, predictable expenses so such overruns can occur from time-to-time...so long as they don’t occur every year. 

Top Photo Credit: tiverylucky/freedigitalphotos.net

The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.

 

ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.

 

Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.

 


FHA/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

eric.boucher@readysetloan.com
ready set loan condo team

 

 CAI-CT logo

 Check out our article in Common Interest magazine on page 19!

Find Eric Boucher with ReadySetLoan Condo Team on Google+

Comment balloon 5 commentsReadySetLoan Condo Approval Team • July 28 2015 09:20AM
Can We Use Reserve Funds for Landscaping During Drought?
share
Can We Use Reserve Funds for Landscaping During Drought? We receive a lot of questions from associations on how they are able to use their reserve funds and still be eligible for FHA condominium project approval. Up in our neck of the woods in New… more
FHA Won’t Dictate How You Run Your Condominium
share
FHA Won’t Dictate How You Run Your Condominium We have been working with one of our clients for many months because the Board has been reluctant to provide the necessary information to us. It recently surfaced that they have concerns that once the… more
Property Manager Won’t Help With FHA Condo Approval
share
Property Manager Won’t Help With FHA Condo Approval.. because they offer the same consulting service. We were contacted by one of our property manager referral partners about obtaining an FHA condominium project approval for the condominium in… more
New Level of Scrutiny in FHA Condo Project Approvals
share
New Level of Scrutiny in FHA Condo Project Approvals In February, we were saddened to learn of the retirement of the Chief in FHA’s Philadelphia Homeownership Center (PHOC). We had a great working relationship with her and had met her in 2014 at… more
"Your Association and the FHA-What's in it for me? " with…
share
"Your Association and the FHA - What's in it for me? " with Eric Boucher Join Reserve Specialist Robert Nordlund of Association Reserves and Eric Boucher of ReadySetLoan in this straightforward discussion clearly outlining the… more
Trying to be Slick with Legal Language
share
Trying to be Slick with Legal Language The packages for FHA condominium project approvals include the management agreement between the association and the property manager. Most of them are about 8-12 pages, cut-and-dry, very simple and very easy… more
6-Unit Condominium Approved with FHA in 9 Days
share
6-Unit Condominium Approved with FHA in 9 Days In February, we were contacted by a unit owner in a 6-unit condominium in Chicago. His condominium’s FHA approval was due to expire in June. He had read my article about FHA concentration and had… more
But the Master Association Has Reserves
share
But the Master Association Has Reserves A few months ago, I received a phone call from a reverse mortgage loan officer regarding an association that was recently Rejected for an FHA Condominium Approval. He said that he has clients in the… more
Can We Not Send that Document to FHA?
share
Can We Not Send that Document to FHA? We are currently processing a 2-year FHA recertification for a small 6-unit condominium. It was approved with FHA in June of 2013 so it should be a piece of cake, right? Well, maybe not… Our contact with the… more
USDA Purchase Loans for Condo Units
share
USDA Purchase Loans for Condo Units Probably the most under-utilized purchase loans for condominium units are those insured by the USDA. Like the VA and FHA, the USDA Rural Development (RD) program is a home loan insurance that allows the financing… more