(to be completed by the Homeowners Association to be answered “True or False”)

_______ 1. The legal documents of the homeowners association do not contain a right

of first refusal or restrictive covenant.

_______ 2. The unit is part of a condominium regime that provides for common and

undivided ownership of common areas by unit owners.

_______ 3. The project, including the common elements, and those of Master

Association, are complete, and the project is not subject to additional

phasing or annexation.

_______ 4. There are no special assessments pending.

_______ 5. No legal action is pending against the condominium association, or its

officers or directors.

_______ 6. The common areas have been under the control of the homeowners

association for at least one year.

_______ 7. At least 90 percent of the total units in the project have been sold.

_______ 8. At least 51 percent of the total units in the project are owner-occupied.

_______ 9. There are no adverse environmental factors affecting individual units or

the project as a whole.

_______10. No single entity owns more than 10% of the total units in the project.

_______11. The units in the project are owned in fee simple or the units are held

under a leasehold agreement. (Must attach copy of Leasehold)

_______12. The owners association has adequate common area insurance coverage.

general liability, replacement coverage, etc. reflects the character,

amenities and risks of the particular development. Flood and other

insurances carried, when applicable.

_______13. General maintenance level of common elements is acceptable and there is

no deferred maintenance.

_______14. The owners association has a reserve plan and a reserve fund, separate

from the operating account, that is adequate to prevent deferred

maintenance. The amount of the fund is $_________ as of __________.

_______15. (a) For projects consisting of over 30 units, no more than 10% of the

total units are encumbered by FHA insured mortgages.

_______ (b) For projects consisting of 30 units or less, no more than 20% of the

total units are encumbered by FHA insured mortgages.

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Condominium Project Name

________________________________________________ __________________

Homeowners Association Representative Signature Date

____________________________________ __________________

Homeowners Assoc Rep Name and Title Phone

____________________________________ __________________

Address Fax

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