LOC News
FHA Issues New Condominium Approval Rule
The Federal Housing Administration (FHA) has published a long-awaited final regulation and policy implementation guidance document which establishes a new condominium approval process for first-time home buyers.
The new rule is expected to add flexibility for prospective home buyers and be more responsive to market conditions. For example, certain individual condominiums could be approved for an FHA loan even if the condominium development has not been FHA approved. The policies introduce a new single-unit approval process, extend the recertification requirement for approved condominium projects from two to three years and allow for more mixed-use projects to be eligible for FHA insurance.
The polices will become effective October 15. FHA's new condominium policy is part of a broader administration objective to reduce regulatory barriers that currently restrict ownership opportunities for affordable housing. With this added flexibility in place, more housing stock within a broader affordable range could be available soon.
Contact: Jim McCauley, Legislative Director – jmccauley@orcities.org
Last Updated 8-23-19