On Aug. 30, 2017, the Department of Housing and Urban Development (HUD) released Mortgagee Letter 2017-13, Extension of Temporary Approval Provisions for the Federal Housing Administration (FHA) Condominium Project Approval Process, which extends the current temporary guidelines on condominium projects until HUD publishes and implements the Final Rule of Condominium Project Approval. The Final Rule will be incorporated into the Condominium Project Approval Section of HUD Handbook 4000.1.
In response to the extension of the temporary condominium guidelines, NAR sent a letter to HUD urging the release of the Final Rule. NAR reiterated the need for greater flexibility in allowable commercial space and owner-occupancy requirements, as well as a more streamlined re-certification process and the return of spot loan approval. NAR also offered its services in working with HUD staff to help implement the Final Rule as soon as possible.