- FHA Issues Updated Condominium Approval Policy Guidelines and Requirements
- August 12, 2011 | Authors: Brian D. Bichy; Douglas M. Irvin
- Law Firm: Linowes and Blocher LLP - Bethesda Office
On June 30, 2011, the Federal Housing Administration ("FHA") issued Mortgagee Letter 2011-22 which included a revised Condominium Project Approval and Processing Guide that consolidates and updates the requirements and procedures that constitute the Condominium Approval Process.
In the current economic climate, FHA approval can be an invaluable tool to ensure the success of your condominium project.
As an example of FHA's updated policies, FHA previously rejected applications for approval if the condominium governing documents included provisions intended to comply with affordable housing program requirements such as Montgomery County's MPDU program or Anne Arundel County's housing for the elderly of moderate means program, or if the condominium governing documents included certain leasing restrictions. FHA has addressed such issues in the new requirements and now allows more flexibility in approving projects that contain such restrictions.