Building affordable housing is not particularly affordable. Costs of construction usually far exceed the revenues generated by rents. Without utilizing highly complex financing tools, often from multiple sources, for developing, preserving, and operating affordable apartments, building affordable housing is often impossible. This topic will help you understand how to effectively utilize available financing tools to develop quality housing for low-income residents. The material also explains the myriad of financing tools available for affordable housing and the complex application procedures for these funding sources. This information is essential for anyone involved in the development or operation of affordable housing and will enhance one's understanding of affordable housing financing tools and the benefits and challenges of each.
Traditionally, the majority of housing affordable to many families has come through “filtering” – as apartment homes grow older, they gradually become part of the “naturally occurring affordable housing.” Following the Great Recession and Global Financial Crisis, this process reversed as value-add investors rehabbed apartments into higher rent classes to make up for the lack of new construction.
ENotes and other electronic loan documentation are now routine in residential mortgage lending and have gained more acceptance in commercial real estate lending. The industry is gradually moving toward the digital transformation of the mortgage lifecycle: application, closing, documentation, notarization, recording, and securitization.
ESIGN and UETA establish the legality of electronic records and signatures. MERS provides a platform for filing and tracking transfers of "control" of real estate notes from one party to another. However, electronic documents must comply with the UCC and recording statutes (which might require a paper original of the mortgage) and other applicable state laws.
If litigation ensues surrounding electronic loan documents, counsel must understand and address enforceability, authentication, and admissibility issues of electronic communications and e-signatures.
Listen as our authoritative panel discusses the use of eNotes and electronic loan documentation in commercial and residential mortgage lending. The program will also examine legal and practical issues regarding transferability, UCC perfection, the authentication of electronic signatures, and the admissibility of electronic communications and e-signatures in litigation.
The aftermath of the Surfside condominium collapse is one of the most unspeakable tragedies in condominium history. As investigators continue to search for the cause or causes of the collapse, it is natural to search for solutions on how future building collapses or other disasters can be prevented. It is unlikely that there will be a "single" identifiable cause of the condominium collapse. Rather, the collapse was likely caused by a multitude of factors.
Counsel for HOAs should consider reviewing policies and actions of the condominium association's board of directors. Most states provide various protections for volunteer directors of a nonprofit corporation and only require that a director must discharge their duties in good faith, with the care of an ordinarily prudent person, and in a manner that they believe is in the best interests of the corporation. Directors should ensure that their articles of incorporation and condominium bylaws are updated so volunteer directors are appropriately protected from liability. Similarly, volunteer board members should consult with insurance agents to ensure that appropriate directors' and officers' insurance is in place.
Boards will want to examine inspection and engineering reports and communicate those findings to co-owners to determine the advisability of proceeding with repairs. Counsel should advise condominium board members to act on the advice that is received. Boards need to budget properly and realize that sometimes difficult choices need to be made, which may involve assessment increases that will not be popular with co-owners.
Some condominium documents require the condominium association to perform an annual inspection of the major common elements. While hiring professionals to perform inspections costs money, amending your condominium bylaws to require mandatory inspections may not be a bad idea. Similarly, while reserve studies are a best practice, there is nothing preventing a condominium association from amending their condominium bylaws to require that reserve studies or structural engineering inspections be performed on a regular basis. While condominium and homeowner association acts may not impose minimum insurance requirements, boards should consider reviewing coverage and increasing limits based on current risks.
Listen as our expert panel discusses best practices when advising boards on repairs, inspections, and engineering recommendations for condominiums in order to avoid future disasters.