As I'm sure you're all aware, The FHA is NO longer accepting "spot approvals" for condo projects with case numbers received after December 7th. Now the developement will have to have project approval or as they say, be FHA Approved. The good news here is that FHA will now allow lenders to determine project eligibility, review project documentation, and certify to compliance with Section 203(b) of the NHA and 24 CFR 203 of FHA’s regulations. FHA will continue to maintain a list of approved condominium projects. Lenders will be required to retain all the project legal documents, contracts, conveyances, plats, plans, insurance coverage, presale and owner occupancy conditions and other documentation in connection with their review and approval of the condominium project. Again, a "Direct Endorsement" lender can do all of it in house. Below is a Matrix of what will be needed to get your project approved.
CONDOMINIUM PROJECT APPROVAL MATRIX Proposed/Existing/Conversion
!) All Condominum legal Documents X X X
a) Recorded plat map indicating legal descrition X X X
b) Recorded CC&R's X X X
c) Signed and adopted By-laws X X X
d) Articals of Incorporation filed with the State X X X
e) Recorded condo Site Plans X X X
2) Plan of evidence of transfer of control X X X
3) Proposed or actual budget X X X
4) Management Agreement (if Applicable) X X X
5) Equal Employment Opportunity Cert, (form# HUD 92010 X
6) Builders Certification of Plans and Specs (form# HUD 92541) X X
7) FEMA Flood Map X X X
8) Estimated Construction Completion Date X X
9) Outstanding or Pending Litigation Analysis X X
10) Pending Special Assment Analysis X
