A Detached Condominium Housing Project (DCHP) refers to a Condominium Project that has individual detached Single Family Dwelling Units, garage, and onsite improvements that are owned and maintained by the homeowner. The ground beneath the residential improvements is owned by the Condominium Association or Homeowners’ Association (HOA) or is under a long-term leasehold interest and considered common area or limited common area.
If the governing documents require the Unit owners to maintain all applicable property insurance coverage for the dwelling, site area, and any Personal Property contained within, the DCHP Condominium Association or HOA is not required to maintain:
The Condominium Association or HOA must carry master or blanket insurance for Structures/improvements that are considered common areas of the project outside the footprint of the individual site.
The Mortgagee must verify that the Unit owners and the Condominium Association or HOA comply with FHA insurance coverage requirements.
For additional information, see: Handbook 4000.1 II.A.8.p.ii(F)(4) and II.C.2.c.vii(E) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
If the governing documents require the Unit owners to maintain all applicable property insurance coverage for the dwelling, site area, and any Personal Property contained within, the DCHP Condominium Association or HOA is not required to maintain:
- a blanket Hazard Insurance policy, provided the governing documents require the Unit owners to maintain individual Hazard Insurance;
- a Liability Insurance policy, provided the governing documents require the Unit owners to maintain individual Liability Insurance; and
- a Flood Insurance policy, provided the governing documents require the Unit owners to maintain individual Flood Insurance.
The Condominium Association or HOA must carry master or blanket insurance for Structures/improvements that are considered common areas of the project outside the footprint of the individual site.
The Mortgagee must verify that the Unit owners and the Condominium Association or HOA comply with FHA insurance coverage requirements.
For additional information, see: Handbook 4000.1 II.A.8.p.ii(F)(4) and II.C.2.c.vii(E) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh