Temporary FHA Guidelines—It’s Not Over Yet!
Written by: Elina Gilbert on Tuesday, September, 2nd, 2014
On August 13, 2014, we blogged to warn condominium communities that temporary FHA condominium approval guidelines were about to expire on August 31st. However, FHA has just announced an extension of the temporary guidelines, which will now remain in effect until August 31, 2016. As a reminder, the current temporary guidelines define delinquencies as those that are more than 60 day delinquent (versus 30 days as set forth in the original guidelines). Additionally, the temporary guidelines allow one person/entity to own up to 50% of all units in the project, as opposed to 10% as set forth in the original guidelines. Finally, the temporary guidelines allow mixed-use developments to have as much as 35% of the square footage available as commercial space versus the 25% cap in the original guidelines.
This extension will allow condominium communities to obtain certification that may not otherwise qualify under the original FHA guidelines. Also, the extension will provide additional time for FHA to further developer and streamline the certification process. Clearly this extension warrants a sigh of relief!! Do you agree?
For more information concerning FHA certification, take a look at FHA Condominium Certifications: The Requirements and Prohibitions.