FHA Eases Condo Project Approval Requirements
The Federal Housing Administration (FHA) recently published new guidelines under its condominium approval process intended to increase affordable housing options for first-time and low- to moderate-income home buyers. Effective immediately, FHA’s temporary guidance will streamline the agency’s condominium recertification process and expand the eligibility of acceptable ‘owner-occupied’ units to include second homes that are not investor-owned.
These provisions will expire in one year and serve to revise FHA’s condominium approval process until the agency can implement a more comprehensive condominium rule change. The guidance:
- Modifies the requirements for condominium project recertification;
- Revises the calculation of FHA’s required owner-occupancy percentage; and
- Expands eligible condominium project insurance coverages.