Capital Contribution to HOA Closing Costs Paid to Condo Association Today, I had a closing with a client in a condominium in New Milford. The particular condominium association (or home owners association, commonly called “HOA”) had a condition to buying a property there: he had to make a “capital contribution” to the association accounts in the amount of two months of HOA fees. This left my client wondering: “Why do I have to a capital contribution to the condo association?” FHA Guidelines for Condo Associations The answer here is regulation by the Federal Housing Authority, or “FHA”. In order for potential buyers to be able…
