Laserfiche WebLink
Master Builders Association <br /> of King and Snohomish Counties <br /> 335 116th Avenue SE <br /> Bellevue,Washington 98004 <br /> / t (425)451-7920/1(425)646-5985 <br /> ,."ss'ss.rnaste rb uild ersi of o.corn <br /> MASTER BUILDERS <br /> ASSOCIATION <br /> April 18,2014 <br /> Mayor Ray Stephanson <br /> Everett City Council <br /> 2930 Wetmore Ave. <br /> Everett,WA 98201 <br /> RE: Fee-Simple Unit Lot Subdivision Code Amendments <br /> Dear Mayor Stephanson and Councilmembers: <br /> On behalf of the nearly 3,000 members of the Master Builders Association of King and Snohomish <br /> Counties(MBA), I would like to thank you for your consideration of the unit lot subdivision code <br /> amendments before you,and further encourage your support. <br /> Allowing for fee-simple lots in the multi-family zones is simply a change in ownership style that allows <br /> for more easily attained financing and refinancing for the builder, buyer and existing homeowner.There <br /> are no physical differences between the proposed fee-simple unit lot subdivisions and those that use a <br /> condominium form of ownership. <br /> The allowance of fee-simple ownership creates opportunities for affordable home ownership that may <br /> not otherwise be achieved.The challenges related to condominium financing, insurance and <br /> development issues are well documented. For example,the Federal Housing Authority(FHA) requires <br /> the following be satisfied prior to loan approval: at least 50 percent of the units in the project must be <br /> sold;fewer than 15 percent delinquencies;50 percent or fewer of the residents can be renters; and 10 <br /> percent of condo fees must be kept for cash reserves.Conventional financing has similar requirements, <br /> although if the buyers intend to be owner-occupants and the condo association has been established for <br /> at least three years,a limited project review can be done that may allow a loan approval in spite of a <br /> high ratio of renters. <br /> Beyond the actual unit and building, FHA condo guidelines extend to geographic and environmental <br /> factors that could affect the property.Condominium building located within 3,000 feet of landfills and <br /> 2,000 feet of buildings that could be prone to fire hazards cannot be approved for FHA financing. FHA <br /> guidelines do not accept condos that are in close proximity to freeways,airports or railroads due to <br /> noise hazards. Condominium projects located in designated flood zones or wetlands are also not eligible <br /> for FHA loans. <br />