The Department of Housing and Urban Development is extending temporary condominium policy guidance issued last year. The guidance is now extended for all Federal Housing Administration case numbers assigned through June 30, 2011, except for the “spot loan” approval process expired on February 1, 2010 and is not being extended said HUD.
The FHA concentration requirement defined in ML 2009-46 B is increased temporarily from 30 percent to 50 percent. However, the FHA concentration may be increased up to 100 percent if the project meets all of the basic condominium standards described in ML 2009-46 B, plus the additional items stated below:
- The project is 100 percent complete and construction has been completed for at least one year, as evidenced by issuance of the final or temporary/conditional certificate of occupancy for last unit conveyed;
- 100 percent of the units have been sold and no entity owns more than 10 percent of the units in the project (for projects with fewer than 10 units, single entity may own no more than 1 unit);
- The project’s budget provides for the funding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 10 percent of the budget;
- Control of the Homeowners Association has transferred to the owners; and The owner-occupancy ratio is at least 50 percent.
For more information on the extension, see here.