Case Study:


CHALLENGE. In 2010, the Federal Housing Finance Agency (FHFA) announced plans to prohibit Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System (collectively known as the GSEs) from purchasing, guaranteeing, or otherwise supporting mortgages secured by a home subject to a private transfer fee. Homeowners living in community associations—condominiums, cooperatives, and planned communities—routinely use transfer fees to support community operations and provide vital services to homeowners and residents. With the GSEs supporting more than 70 percent of mortgage originations, homeowners living in these communities faced the real threat that mortgage financing would no longer be available to them.

SOLUTION. Working with Community Associations Institute (CAI), Tambala Strategy crafted a comprehensive plan for CAI members to educate the FHFA, the U.S. Congress, and the media on how community associations use transfer fees and the consequences of implementing FHFA’s proposed transfer fee ban. Tambala Strategy secured meetings with senior executives at FHFA as well as with key staff in the U.S. Congress, enabling CAI to take its message directly to decisionmakers. Tambala Strategy worked to build a coalition with other national trade associations to magnify CAI’s message to FHFA and the Congress.

RESULT. The FHFA reissued its private transfer fee proposal, taking into consideration CAI’s recommendations. In its final rule FHFA exempted community association transfer fees from regulation, preserving access to credit for association homeowners as well as a vital source of funding for community associations nationwide.

Case Studies

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