Can a condo project whose approval was previously rejected or withdrawn be processed using DELRAP?

If the Condominium Project was rejected or withdrawn under the HUD Review and Approval Process (HRAP) within the previous 12 months, FHA will reconsider the Condominium Project upon submission of corrected or updated documentation. 
If the Condominium Project was rejected or withdrawn under HRAP more than 12 months ago, a Full Review is required.

If the Condominium Project was rejected under Direct Endorsement Lender Review and Approval Process (DELRAP), a Full Review is required under HRAP.

If the Condominium Project was subject to adverse determination for significant issues identified by FHA a Full Review is required under HRAP.
 
For case numbers assigned October 15, 2019 and after, additional information regarding Reconsiderations of Condominium Projects refer to:  Handbook 4000.1, Sections II.C.3.d. available at:  https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 
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.
Note: The Temporary Provisions in ML 12-18 and ML 15-27, as modified by ML 2016-15, are effective until HUD publishes and implements the Final Rule of Condominium Project Approval through publication of the Condominium Project Approval Section of HUD Handbook 4000.1, as extended by ML 2017-13.  Mortgagee Letters are available at:  https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
 
For more information regarding condominium projects refer to:

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03934