An Ohio condominium’s FHA certification recently expired. That condominium elected not to seek recertification. Thereafter a single mother with a child attempted to purchase a unit in that condominium, using FHA financing. The mother asked the condominium to seek recertification, but the condominium refused. She was in turn unable to purchase the condominium, and filed a complaint against that condominium with the Ohio Civil Rights Commission. The Commission filed suit thereafter, and the dispute was placed initially in the ‘investigative’ stage. For now, as the case proceeds, condominiums should make sure that any decision not to seek certification be based upon non-discriminatory, reasonable and good faith factors. For instance, a condominium’s decision against seeking certification could very easily be based upon a good faith belief that said condominium was actually not eligible for certification and thus why incur expenses, and waste resources, on a certification application destined for rejection. That being said, a condominium that has no minutes, memos or other evidence that it considered certification but elected not to seek certification, in good faith, may have trouble avoiding, at least, an initial civil rights-related inquiry.
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