Yesterday, the U.S. Department of Housing and Urban Development ("HUD") issued a Mortgagee Letter and Condominium Project Approval and Processing Guide ("Guide"), which serve to define the requirements for obtaining, recertifying and maintaining condominium project approval. The Mortgagee Letter and Guide are intended to:
- Consolidate prior published guidelines;
- Provide a single source of information for the Condominium Approval and Recertification Process;
- Update, consolidate and clarify existing condominium policy guidance; and
- Expand FHA's flexibility to consider individual circumstances so that the approval process works efficiently while allowing FHA to better address changing market conditions.
The Mortgagee Letter also includes an Implementation Schedule identifying timelines for lenders to comply with the guidelines.
More updates to follow.