On August 29, 2014 the Federal Housing Administration (FHA) announced the extension of its current condominium project approval guidelines for an additional two years. Several of the key project approval guidelines were modified in 2012 to make it easier for many condominiums to obtain FHA approval. Those modified guidelines were originally set to expire on August 31, 2014, unless extended. Fortunately, this extension was issued in order to avoid the expiration of the more lenient guidelines (to read the relevant announcement from FHA, please click here). (http://portal.hud.gov/hudportal/documents/huddoc?id=14-17ml.pdf)
As anticipated, this extension was issued to allow time for completion of the pending Single Family Housing Policy Handbook, which FHA now expects to be completed sometime during 2015. This Handbook will encompass all aspects of working with FHA, and will include more “permanent” condominium project approval guidelines to replace the existing temporary guidelines.
What does this really mean and why should condominium associations care? In plain English, this means that there will be no immediate changes to the condo project eligibility criteria. FHA is still in the process of revising and making “permanent” its condo project approval guidelines. Some of the existing eligibility criteria will likely be modified and clarified over the coming months, but for the moment nothing is changing.
If your condominium is not currently FHA approved, now is a great time to seek approval – while the water is (relatively) clear and before any additional changes occur! Please contact our FHA expert, attorney Matt McMullin, for assistance: [email protected] or 801.335.5136.