What are the FHA condominium project recertification requirements and where can I find them?

Condominium Project approvals will expire two years from the date of placement on the list of approved condominiums. Further participation in the program after the two-year period has expired will require recertification to determine that the project is still in compliance with HUD’s project eligibility requirements and that no conditions exist which would present an unacceptable risk to FHA.  
 
Specific recertification requirements are listed in the Recertification Checklist, which can be accessed at https://www.hud.gov/sites/documents/15-27MLATCH.PDF

The recertification process will begin six (6) months prior to the approval expiration date, with the availability to recertify until six (6) months after the approval expiration.  If the project has not recertified within the time frame noted, full project approval will be required.  

Packages may be submitted to the jurisdictional Homeownership Center (HOC) by the mortgagee, builder, developer, homeowners association, management company, attorney or project consultant.  Packages received from borrowers, homeowners, sellers, real estate agents or other sources will not be processed without prior approval from FHA.   To identify the jurisdictional HOC for the state where the condominium project is located you may go to: https://www.hud.gov/program_offices/housing/sfh/sfhhocs
 
Eligible processing options include the HUD Review and Approval Process (HRAP) performed by the jurisdictional Homeownership Center (HOC), or the Direct Endorsement Lender Review and Approval Process (DELRAP) performed by the Mortgagee.  The HOC and Mortgagee must process the recertification of a project’s approval following the requirements described in the Condominium Project Approval and Processing Guide (Attachment to Mortgagee Letter (ML) 11-22), ML 12-18, ML 15-27 and ML 16-15.  

For more information regarding condominium projects refer to:

  • The FHA Condominium Mortgage Insurance page at: https://www.hud.gov/program_offices/housing/sfh/ins/sfh_ins_condominiums
  • Mortgagee Letter (ML) 11-22 and Condominium Project Approval and Processing Guide
  • ML 12-18 Temporary Approval Provisions for FHA Condominium Project Approval
  • ML 15-27 Additional Temporary Approval Provisions for FHA Condominium Project Approval  
  • ML 16-15 FHA Condominium Project Approval – Owner Occupancy Requirements 
  • 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

To search for approved condominiums please visit: https://entp.hud.gov/idapp/html/condlook.cfm 
 


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-05134