NAHB Helping Members Comply With FHA Marketing Requirements
With erosion of the subprime mortgage market increasing interest in Federal Housing Administration programs as an alternative source of financing for first-time home buyers, builder and developers who want to sell new homes with FHA financing are being reminded that they must comply with requirements from the Department of Housing and Urban Development to market their housing affirmatively to minorities and other protected classes.
For single-family builders, the most straightforward way is already incorporated in HUD’s Site Inspection Form 92541, which builders need to fill out for FHA construction certification anyway. Question 11, box D provides a short list of affirmative marketing requirements, and builders can self-certify compliance with them.
To sell properties that are not single-family homes, an Affirmative Fair Housing Marketing Plan (AFHMP) needs to be developed and implemented. NAHB members have access to a streamlined compliance process — the Voluntary Affirmative Marketing Agreement, or VAMA. Only NAHB members can sign a VAMA. In order to show compliance with the affirmative marketing requirements for FHA financing, all a builder has to do is state that it is a VAMA signatory.
The VAMA comes with its own requirements — both for home builders associations and builders — so neither the HBA nor the builder is required to adopt it. However, for many condo builders, the VAMA may provide a less complicated path to FHA financing, because it doesn’t involve getting HUD approval of an individual plan.
For VAMA compliance information for builders and home builders associations, NAHB members can click here.
This section of the NAHB Web site includes the text of the VAMA, as well as some sample materials that might be useful for complying with the agreement. Builders and HBAs should be aware that complying with the VAMA only shows that the FHA affirmative marketing requirement has been met; it does not necessarily prove compliance with the Fair Housing Act itself, or any other law.
For more information, e-mail AJ Holliday at NAHB, or call him at 800-368-5242 x8305.
Attend the Spring Construction Forecast Conference in April
Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry.
Can't attend? Watch the conference webcast live.
For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.
Want to Know the Housing Forecast for the Top 100 Metros?
Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview).
Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables.
To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.
To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.
To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.
For assistance, call the NAHB Member Service Center at 800-368-5242.