Coalition Launches to Dispel Myths and Protect Private Transfer Fees
NEW YORK, Sept. 30 /PRNewswire-USNewswire/ -- Today a diverse group from across the country launched the Coalition to Preserve Community Funding (CPCF). The Coalition was formed to preserve private transfer fees (PTFs), also called capital recovery fees (CRFs) — an innovative real estate and community financing tool — and to advocate for straightforward, uniform disclosure of PTFs. CPCF unites the voices of builders, developers, property owners, lenders, non-profits and any others who want to utilize the value that PTFs offer to communities. The Coalition has launched a website in order to dispel the myths surrounding the private transfer fee debate, and to provide useful and accurate information.
"For months I have heard the Realtors and title companies peddle myths about private transfer fees," said Jaime Arechiga, a Texas based developer. "I know first-hand how PTFs can offer a path to overcoming difficult economic times, keeping my workers employed, and making homes more affordable."
A private transfer fee (also called a "capital recovery fee") is a real estate financing tool that allows developers to spread the high upfront infrastructure costs of building new developments like sewer lines, roads and water pipes. PTFs, which have been in use for many decades, are legal covenants that attach to property and are filed in the office of the public records, easily found by ordinary diligence. Nationwide, an estimated 10-12 million single-family homes are currently subject to private transfer fees.
Currently, a proposal is pending at the Federal Housing Finance Agency (FHFA) to restrict Fannie Mae and Freddie Mac from purchasing mortgages encumbered by a private transfer fee. The mission of the CPCF is to stop the guidance as it was proposed and advocate for the adoption of guidance that requires straightforward, uniform, disclosure of PTFs in all title documents. The U.S. House of Representatives has introduced a bill in Congress to require such clear and prominent disclosure of private transfer fees, which would help ensure that all parties are properly informed, and thus effectively address the alleged concern that is voiced by the Realtors and Title Companies.
For more information, please visit www.coalitiontopreservecommunityfunding.com.
SOURCE Coalition to Preserve Community Funding
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