An estimated 2,200 condominium projects nationwide last week lost their eligibility for Federal Housing Administration-guaranteed sales and refinancing.
Unless condo officials take action, another 23,000 residential condos with housing units numbering in the tens of thousands will lose their eligibility by spring. That means that buyers of units in these buildings won’t be eligible for FHA financing.
This situation was the result of an effort by the FHA to guarantee that condos and their underlying home owners associations have adequate budgets, legal documents, and other things that lead to financial stability.
In 2009, the FHA spelled out tough standards that required that condo projects approved for FHA financial before 2007 have their approvals renewed by Dec. 7, 2010. About 25,000 projects missed the cutoff. Because there were so many, the FHA extended the deadline, setting new deadlines through out 2011. The only losers were the 2,200 projects that had the oldest approvals.
The FHA urges all condominium owners to get in touch with their associations and push them to meet the revised deadlines.
For more information, or to check the status of a condo project, visit (select by state): https://entp.hud.gov/idapp/html/condlook.cfm
Source: Charlotte Observer, Kenneth R. Harney (12/11/2010)