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

Condominium Project approvals will expire three years from the date of placement on the list of approved condominiums. Further participation in the program after the three-year period has expired will require recertification to determine whether 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.

The Recertification Review can be performed no earlier than six months prior to the Approved Condominium Project expiration date or no later than six months after the Approved Condominium Project expiration date. If not submitted within the stated time frames, the Condominium Project is not eligible for recertification but must re-apply for Full Review.

For a Recertification Review, all required documentation must be submitted as specified in Condominium Project Approval section (Handbook 4000.1, II.C) except the following documents:

  • Recorded Covenants, Conditions, and Restrictions (CC&Rs), declaration, and/or master deed, and all amendments;
  • Recorded plat map or condominium site plans;
  • Signed and adopted bylaws; and
  • Articles of incorporation, articles of association, declaration of trust, or other governing documents, if applicable and as required by state law.
If amendments have been made to the foregoing documents, they must be submitted.
 
If approval was issued under Legal Phasing, all required documentation required in Handbook 4000.1, Section II.C.2.b must be submitted except as noted above.

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 Handbook 4000.1.

Recertification packages being submitted via HRAP must be submitted to the jurisdictional Homeownership Center (HOC) by one of the following:
  • Mortgagee;
  • Builder;
  • Developer;
  • Condominium Association;
  • Management Company;
  • Project Consultant; or
  • Attorney acting as an agent for the developer/builder, Condominium Association or management company.
FHA will not pay any fees associated with the Condominium Project Recertification process.
 
For case numbers assigned October 15, 2019 and after, additional information regarding Condominium Project Recertification refer to:  Handbook 4000.1, Sections II.C.3 and II.C.2.b. 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-05134