Do you know if your privates (transfer fees) are being reviewed and approved?

This article is about a recent change that affects what are called "private transfer fees" on real estate sales. In some instances, developers were attaching long term repayment fees into their sites which could allow for up to 1% paybacks to developers and bond holders for up to 99 years.  GSE programs like Fannie Mae, Freddie Mac and government backed FHA were going to refuse financing on anything with private transfer fees - including HOA fees which would have hamstrung them from building up reserves in ways other than dues or assessments.

Another group that was being harmed by the initial denial of financing for private transfer fees are non-profits who regain some of their money put into low-income or moderate-income assistance programs for housing.

This rule has now been modified so that communities that directly benefit from the fees may still have them on the books, but it limits any investor related activity.

Thanks to the REALTOR association for helping fight the good fight on this one!  I'm proud to be a member.