On the Subject of Condos…

We’ve received a great many comments from the public about CFSIC’s proposed underwriting guidelines. Many of these have been constructive and helpful, and CFSIC’s board will consider all of them at its next board meeting.

I wanted to make a comment on the subject of condominiums.

Many of you have expressed concern about CFSIC’s interpretation of the language in the enabling legislation concerning condominiums, where the number of condo units on the same foundation exceeds four.

We are guided in what we do by the existing enabling legislation. The current enabling legislation wording mandates to us that, when the number of units exceeds four on the same foundation, all units become ineligible.

I think we can agree that this was clearly not the intent.

I wanted you to know that I’m going to be discussing this issue with CFSIC’s board of directors, so that we can begin the process of working with condominium owners to have their foundations replaced or reimbursed. The legislators I have spoken with on this subject have also committed to us that they will work together, across the aisle, to make certain that the enabling legislation language is changed. Everyone agrees that the intent of the legislation, in this regard, was different than the outcome.

For the time being, nothing will change in the underwriting guidelines…because nothing can change until CFSIC’s board meets and the issue is addressed completely with all changes…including condo eligibility…up for discussion.

However, CFSIC’s board is committed to effecting this change and making it possible for condominium owners to seek and get relief, and we will do what we can at our end to make sure that happens.

Michael Maglaras, Principal
Michael Maglaras & Company