Governor Brown has signed AB 596 which, beginning July 1, 2016, requires the annual budget report of a condominium project to also include a separate statement describing the status of the association as a Federal Housing Administration (FHA) approved condominium project and as a federal Department of Veterans Affairs (VA) approved condominium project.The statement as to the FHA certification status of the association must be in at least 10-point font on a separate piece of paper and in the following form:
“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.”
Similarly, the statement on the VA certification status of the association must also be in at least a 10 point font, on a separate piece of paper and in the following form:
“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.”
There is no requirement that the disclosure document be revised mid-year should the association’s certification status change. However, as part of the disclosure form, associations should consider including a statement indicating the date as of which the status identified on the form is accurate, and including information on the form that those interested can obtain the most currently available information by
checking the association’s certification status on-line at the FHA and VA websites.
FHA status can be checked online at U.S. Department of Housing and Urban Development website, or:
VA status can be checked at the Department of Veterans Affairs web site or:
