I have found out some extremely important information regarding FHA condominium projects. HUD has just announced a requirement for all condominium projects to undergo re-approval. The date of original approval will define how stringent a process that the development will need to undergo.
The specifics are as follows:
- If project initially approved prior to January 1, 2000, full project approval is required.
- If project initially approved on or after January 1, 2000, then the project is eligible for the re-certification process.
- Projects may be recertified beginning six (6) months prior to the approval expiration date or within six (6) months after the approval expiration date.
- Projects not re-certified within six (6) months after the approval expiration date will require full project approval.
- To determine date project was initially approved - can be checked in FHA Connection or on the public web site located at: https://entp.hud.gov/idapp/html/condlook.cfm
The important take away is that this can affect buyers, sellers and Realtors. If you are on the board of a condominium development that was previously FHA approved or, more importantly, the seller of or listing agent for a unit in a development that was previously FHA approved, it is essential that you determine the requirements for re-approval and begin as soon as possible.
