Temporary FHA Guidelines About to Expire
Written by: Elina Gilbert on Wednesday, August, 13th, 2014
For any condominium community that needs to become FHA certified or recertified, FHA requirements are about to become more difficult again. As of September 1, 2014, the temporary FHA condominium approval guidelines are no more unless extended by the FHA.
Pursuant to the current temporary guidelines, condominium projects applying for certification or recertification must show that not more than 15% of all owners are more than 60 days delinquent. As of September 1st, the guidelines revert back to their original requirement that a project must not have more than 15% of its total owners be more than 30 days delinquent.
Furthermore, the temporary guidelines currently require condominiums to demonstrate that one person/entity does not own more than 50% of all units in the project. Starting September 1st, we revert to the original guidelines, which require condominiums to prove that one person/entity does not own more than 10% of all units in the community.
Finally, FHA temporary guidelines currently allow mixed-use developments to have as much as 35% of their square footage be available as commercial space if they apply for an exception to the 25% cap. As of September 1st, mixed-use condominiums will only be allowed to have a maximum of 25% of the total square footage to be utilized for commercial space, without the ability to apply for an exception.
For more information concerning FHA certification, take a look at FHA Condominium Certifications: The Requirements and Prohibitions.