The Federal Housing Administration (FHA) this week published a final regulation that establishes a new condominium approval process.
The new rule reinstates FHA’s ability to insure a limited number of units in projects that have not received FHA approval and will also extend the recertification requirement for approved condominium projects from two to three years.
However, in a provision strongly opposed by NAHB, FHA will no longer approve projects that are proposed or under construction. The rule will allow for project phasing, but each phase would have to be complete before approval.
The rule, which becomes effective Oct. 15, 2019, will give the agency flexibility to adjust its criteria as market conditions change by setting ranges for the maximum and minimum thresholds for owner-occupancy, FHA insurance concentration and commercial space. The ranges give FHA the ability to increase or decrease these thresholds, based on a set of triggers, without providing the opportunity for public comment.
For more information, contact Curtis Milton
at 800-368-5242 x8597.