” We are in contact with HUD Santa Ana and they are working on changing the rules”. This statement and similar statements have been directed at property owners in Sun City and Sun City West when trying to request or inform the two associations of governing document language preventing FHA loan products being approved.
The contention by Board of Directors and managers of the associations that @HUDgov Santa Ana can, and is, working on a solution to the Free Assumability underwriting guidelines in incorrect. HUD Santa Ana is a regional office of HUD, not the rule making authority.
Rule making is housed in Washington, D.C. Currently, Mr. Montgomery is awaiting Senate approval before taking his position. He has been waiting over a year. The position Mr. Montgomery will occupy is the position that approves rule changes. Obviously, as long as that position remains empty, there will be no changes.
I received a letter today from HUD confirming that HUD Santa Ana cannot make changes to Free Assumability guidelines.
WeMAR encourages Sun City and Sun City West Recreation Center Boards of Directors to discuss this issue with their residents and property owners.
Read past WeMAR GAD articles on Free Assumability.