The Federal Housing Administration (FHA) has announced it will extend its temporary condominium project approval policy provisions without changes until Aug. 31, 2017.
The FHA decision ensures easing of condo owner occupancy requirements and a much broader definition of what is classified as "owner occupied" occupancy status as it effects occupancy percentages within a development.
The extension will allow FHA to continue its work on the rulemaking process necessary to propose policy revisions and address items in the Housing Opportunity Through Modernization Act of 2016, (HOTMA) which was signed by the President on July 29. The extension supports the continuation of FHA’s ability to insure mortgages in condominium projects and avoid market disruption.
For more information, read Mortgagee Letter 2016-13, visit www.hud.com/answers or call FHA’s Resource Center at 800-225-5342.