Amendment Reinstating “Grandfather” Exceptions to Restrictions on Private Transfer Fee Covenants
FHFA reinstates grandfather exceptions for private transfer fee covenants, allowing certain existing fees to continue despite restrictions on new ones.
Aforeworn detected this change in the HOA & Condo Board Rules space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Low urgency. Community associations (HOAs, condos) with existing private transfer fee covenants that were previously grandfathered. should confirm how it applies to their specific situation before acting. There is a time constraint attached: No specific deadline; amendment effective upon publication (March 17, 2026).. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors HOA & Condo Board Rules continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
The FHFA technical amendment reinstates grandfather exceptions for private transfer fee covenants that were inadvertently removed, allowing these fees to remain valid for FHFA-regulated entities.
Who it affects
Community associations (HOAs, condos) with existing private transfer fee covenants that were previously grandfathered.
What you must do
Review existing transfer fee covenants to confirm they qualify under the grandfather exception; no immediate action needed unless fees were previously challenged.
Deadline
No specific deadline; amendment effective upon publication (March 17, 2026).
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