October 2011

Condo/FHA Approval, Landlord Guide and the New Lead Paint Rule

New resources for IAR members, and advocacy for the best interests of Illinois REALTORS®

Mike Scobey  |  Assistant Director, Advocacy and Local Issues

• Download these free brochures and many others in the Advocacy free download series www.illinoisrealtor.org/advocacy/downloads

FREE Advocacy Program Brochure: “Making Your Condominium Association More Marketable to Prospective Buyers”
This brochure explains the new federal rules regarding approval of a condo project for FHA financing of unit purchases. It can be given to condo associations to show the importance of making the building more marketable for prospective buyers, particularly those applying for an FHA-insured mortgage.

Condominiums offer an affordable option and, for many homebuyers, are the first step to homeownership. The condo market isn’t stabilizing as quickly as other types of housing, resulting in losses for current condo homeowners and tighter underwriting guidelines for potential buyers.

IAR WORKING FOR YOU!

• In order for the housing economy to stabilize, it is important that there be a healthy condo market. FHA guidelines for condo approval are very important in this matter, and that’s why IAR and its members are working to educate condo associations about the approval process and rules.
• Last August, the IAR Advocacy Program sent this brochure directly to more than 1,000 condominium associations located in Illinois.

Newly Revised “Practical Guide for Landlords in Illinois”
This free guide is an overview and explanation of the major laws and regulations that affect residential rental property management and ownership in Illinois.

In the 2011 session of the Illinois General Assembly, there were several changes to state law which affect rental property, such as radon disclosure (see page 8). The revised guide incorporates the major changes. The guide also includes practical tips on screening prospective tenants.

New Lead Paint Rule: Clearance Testing Not Required with Renovation Work
To protect against the risk of childhood lead paint poisoning, in 2008 the U.S. Environmental Protection Agency (EPA) issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. Under the rule effective April 22, 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific safe-work practices to prevent lead contamination. In May of last year, the EPA proposed an additional rule which would have required dust wipe testing and clearance procedures with most renovation/repair projects.

IAR WORKING FOR YOU!

• NAR and IAR representatives advocated AGAINST the expansion of the lead paint regulation because it would have added considerable time and expense to a home repair project. After a public comment period, the EPA on July 15, 2011, decided not to promulgate this additional rule on dust wipe clearances.
• To learn more about the regulation, or to get support information, go to www.epa.gov/getleadsafe.