FHFA PROPOSAL THREATENS STABILITY OF MANY CNYC MEMBERS

On August 16th, the Federal Housing Finance Agency put forth a proposal that has caused great concern in cooperatives, condominiums and home owner associations across the nation. The FHFA, which is charged with regulating Fannie Mae and Freddie Mac and other Home Loan entities, proposed to prohibit these institutions from purchasing loans made in any develpment that has a transfer fee. A sixty day period was opened for public comment.
Alerted by the Community Associations Institute (CAI), whose condominium and home-owner association members in many states rely on transfer fees to fund their reserves, CNYC was greatly concerned for all of its members with transfer fees. CNYC advised its members of this problem and asked for information on any transfer fees that they have; (see the results on page 4). CNYC sent comments to the FHFA asking that cooperatives, condominiums and homeowner associations be exempted from the proposed restriction and explaining that transfer fees enable these communities to be well maintained and also to remain affordable to residents. CNYC invited members to send their own comments, too.

The Real Estate Board of New York also sent comments supporting this position; legislators from all across the nation did the same, as did the National Association of Housing Cooperatives, the National Cooperative Business Association, the Associated Builders and Owners of Greater New York, the National Cooperative Bank, and hundreds of individuals providing more than 2600 comments in all (of course, some of these comments favored the proposal). These comments are posted on the FHFA website (www.FHFA.gov) under tab called Supervision and Regulations, click on the first item on the pull down menu, Regulations, Notices and Public Comments to find the proposed Guidance on Private Transfer Fee Covenants at the August 16 date when was first put forth. Click the plus sign to the left of the date to review all the comments Scroll through to see this impressive exercise of the democratic right to voice one’s ideas and try to influence government. .

At this writing, there is no way to know what the FHFA will do about this proposed Guidance. CNYC will keep careful watch and will advise members of any results. CNYC extends heartfelt thanks to all the many members who sent comments to FHFA to help change this potentially harmful proposal. Working together, supporting one another, we can achieve our goals.

INTERNATIONAL YEAR OF THE COOPERATIVE
The United Nations has designated the year 2012 as the International Year of the Cooperative. In so doing, the UN focuses a spotlight on the effectiveness of the cooperative way of doing business – whether in employee owned enterprises; or where small store owners form purchasing cooperatives for economies of scale; or when individuals form food cooperatives, baby-sitting cooperatives and cooperative schools, or where farmers join together for greater success in taking their products to market, or to purchase and share the use of large equipment, storage facilities, etc; or housing cooperatives, condominiums and home owner associations that are governed by their residents. All of these cooperative endeavors seek to bring their members the best of quality of goods or services at costs that are affordable. CNYC will keep members advised of opportunities to showcase the cooperative way of doing things during the 2012 celebration.

TWO WAYS TO REQUEST E-MAIL NOTICES FROM CNYC
CNYC has long maintained its award-winning website at www.CNYC.coop, Notices are posted there, as are listings of CNYC’s evening seminars, other events to which CNYC members are invited and the brochure for our Annual Conference. There are also links to City and State agencies and to organization, reports and projects of interest; extensive archives; membership information and forms and an opportunity for individuals to register to receive periodic e-mail messages and alerts (see the top of the right column of each page of this website).

As each cooperative and condominium becomes a CNYCmember, it is asked to designate one contact person to receive notices and calendars of CNYC events by by US mail. This contact person is tasked to relay the information to all board members. Without changing this system, CNYC is adding a way for more board members to receive ‘official’ notices. Beginning in January of 2011, CNYC will comply with requests from member cooperatives and condominiums to send e-mail copies of these notices to one or more Board members. Please do so by sending please e-mail to rothman@cnyc.coop with the names and e-mail addresses of all board members to whom notices should be sent. Please note that this new service is entirely separate and distinct from the online registration for e-blasts.