As announced in Mortgagee Letter 2021-09, Mortgagees may utilize the revised forms immediately. However, Mortgagees must:
- use the revised Form HUD-9991, FHA Condominium Loan Level/Single-Unit Approval Questionnaire, for case numbers assigned on or after May 17, 2021, and
- use the revised Form HUD-9992, FHA Condominium Project Approval Questionnaire, for initial project approval and recertifications submitted to HUD on or after May 17, 2021.
The following is a list of the changes that have been made to both forms and specific changes made to each form individually.
Major changes made to both forms include:
- Allowing data collected on the questionnaire to be no more than 90 days old prior to the questionnaire being signed.
- Developed instructions to explain how questions should be answered and included Single Family Housing Policy Handbook 4000.1 (SF Handbook) section references.
- Removed the requirement that the condominium association must complete the forms and sign the certification on the forms. If the ‘Submitter’ of Form HUD-9992 is the condominium association, then they will still need to certify.
Major changes to Form HUD-9991 include:
- Removed Section 2.c. Management Company.
- Restructured Section 3.a. Occupancy Requirements by Construction Type.
- Relocated Section 3.e.2. Hazard Insurance and Section 3.e.3. Flood Insurance to Section 4.d. Additional Insurance Requirements for Single-Unit Approval.
- Removed Section 3.f. Required Documentation for All Units (Loan Level and Single-Unit Approval). (Mortgagee must still submit required documentation as outlined in the SF Handbook)
- Removed Section 4.g. Additional Required Documentation for Single-Unit Approval. (Mortgagee must still submit required documentation as outlined in the SF Handbook)
Major changes to form HUD-9992 include:
- Consolidated Section 3. Project Eligibility and Section 4. Eligibility Worksheet for Condominium Project Approval.
- Combined Mortgagee Information and Submitter Information in Section 1 to allow a variety of respondents to complete the form.
- Removed questions 3.a.1. – 3.a.9. from Project Eligibility.
- Restructured Section 3.d. Occupancy Requirements by Construction Type.
- Consolidated data collection and eligibility determination for the following sections: Legal Phasing, Units in Arrears, Individual Owner Concentration, Occupancy Requirements by Construction Type, Financial Stability and Controls, Commercial/Non-Residential Space, Litigation, Leasehold Interest, Transfer of Control, Insurance Requirements, and Legal Restrictions on Conveyance.
- Removed Section 3.k. Required Documentation for the Condominium Association and 4.s. Required Documentation for the Submitter. (Mortgagee must still submit required documentation as outlined in SF Handbook)
Changes to the forms do not alter requirements found in SF Handbook Sections II.A.8.p and II.C.2: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
For additional information, see:
- Revised Forms HUD-9991 and HUD-9992 posted to HUD’s Client Information Policy Systems (HUDCLIPS): https://www.hud.gov/program_offices/administration/hudclips
- Mortgagee Letter 2021-09: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee