Control of the Condominium Association refers to the ability to directly or indirectly control, direct, modify or veto any action of the Condominium Association.
The legal documents must:
- require Transfer of Control from the developer/builder to the Unit owners;
- specify the conditions for Transfer of Control;
- indicate the number of Units in the Condominium Project; and
- be recorded, as applicable, in the Covenants, Conditions, and Restrictions (CC&Rs), declaration, master deed, condominium plat, and/or condominium site plans.
- 120 Days after the date 75 percent of the Units in the Condominium Project have been conveyed to Unit owners;
- three years after completion of the Condominium Project as evidenced by the first conveyance to a Unit owner; or
- the time frame regarding Transfer of Control established under state or local condominium laws, if applicable.
The following documentation must be submitted for Transfer of Control:
- documentation of the verification of compliance with the Transfer of Control requirements;
- recorded CC&Rs, declaration, and/or master deed, and all amendments;
- signed and adopted bylaws; and
- articles of incorporation, articles of association, declaration of trust, or other governing documents, if applicable and in accordance with state law.
For case numbers assigned prior to October 15, 2019, information is available in:
- Mortgagee Letter (ML) 2011-22 Condominium Approval Process for Single Family Housing – Consolidation and Update of Approval Requirements and the attached Condominium Project Approval and Processing Guide provides the requirements and procedures for obtaining FHA condominium project approval.
- ML 2012-18 Temporary Approval Provisions for FHA Condominium Project Approval provides temporary condominium project approval guideline changes to address current housing market conditions.
- ML 2015-27 Additional Temporary Approval Provisions for FHA Condominium Project Approval
- ML 2016-15 FHA Condominium Project Approval – Owner Occupancy Requirements modifies the Condominium Project Approval and Processing Guide, attachment to ML 2011-22, in order to implement the Housing Opportunity Through Modernization Act of 2016 (HOTMA) requirements and establish the required owner-occupancy percentage that must be met for purposes of FHA project approval.
For additional information see,
- The FHA Condominium Mortgage Insurance page at: https://www.hud.gov/program_offices/housing/sfh/ins/sfh_ins_condominiums
- To search for FHA-approved condominiums please visit: https://entp.hud.gov/idapp/html/condlook.cfm