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Our Communities, Our Priority

​​​​​​​​​​​​​​​​​​​Federal Government Proposes Plan to Cut off Seniors from Popular Mortgage Program

Federal Housing Administration Proposed Rule on Reverse Mortgage Program for Seniors Program excludes Seniors Living in Community Associations.

Community Associations Institute (CAI) filed comments to encourage FHA to consider removing language in the proposed regulations damaging to seniors living in community associations.  Representative Van Hollen (MD) sent a letter​ to FHA supporting seniors living in community associations. 

The Federal Housing Administration (FHA) issued a proposed federal regulation to exclude millions of senior citizens living in community associations from the agency's reverse mortgage program, also known as the Home Equity Conversion Mortgage (HECM) program. Reverse mortgages allow senior citizens to use the equity in their home for retirement and other expenses without having to sell their house or unit.

Why is the FHA excluding community association senior citizens from its reverse mortgage program? The FHA is using senior citizens to target laws in 21 states and the District of Columbia that provide priority to community association liens for unpaid assessments.

Association lien priority laws are important tools that protect community association homeowners from financial burdens when banks refuse to maintain or foreclose on vacant or abandoned homes. The banking lobby is furiously fighting association priority lien statutes and has enlisted some federal officials to aid their cause.

FHA officials are bowing to the wishes of the banker lobby by using senior citizens in a blatant ploy to attack state laws that protect homeowners from banker negligence. The FHA's proposed exclusion of community association senior citizens from the HECM program—exposing association seniors to higher housing costs, fraud, and foreclosure—is simply bad public policy. ​
Take Action! CAI needs you to help by participating in this grassroots efforts by following the links below. Representatives​ need to hear directly from YOU!