FHA DEADLINE EXTENDED

Published on: December 13, 2010

The Federal Housing Administration (FHA) announced extension of condominium project approvals with an expiration date of December 7, 2010 and urges all condominium communities wishing to retain FHA approval to complete the recertification process.

Provided below are the extension dates based on five-year time frames with the exception of those condominium projects with original approval dates from 1972 -1985.

Initial Project Approval Dates Current Expiration Date New Expiration Date 
1972 – 1980 December 7, 2010 December 31, 2010
1981 – 1985 December 7, 2010 December 31, 2010
1986 – 1990 December 7, 2010 May 31, 2011
1991 – 1995 December 7, 2010 July 31, 2011
1996 – 2000 December 7, 2010 August 31, 2011
2001 – 2005 December 7, 2010 September 30, 2011
2006 – 2008 (Sept) December 7, 2010 March 31, 2011

The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions…interested parties are encouraged to begin the re-approval or recertification process as early as possible as it is not anticipated that any further extensions of project approvals will be issued.

In August, FHA announced a streamlined process for condominiums currently on the FHA-approved list to recertify to program requirements. The Community Association Institute (CAI) summarized the streamlined procedures, which are available in the on their site. Under FHA’s condominium project approval guidelines, FHA-approval for all condominiums certified prior to October 1, 2008, was set to expire on December 7, 2010.

The Condominium look-up page and the FHA Connection databases were updated on December 7, 2010 and now reflect the extended expiration dates.  The links to the sites are:

Condominium look-up page: https://entp.hud.gov/idapp/html/condlook.cfm

FHA Connection: https://entp.hud.gov/clas/index.cfm

It is estimated that approximately 40% of all new loans will be insured by FHA, as such, FHA is becoming an increasingly important player in the condominium financing arena.  Consequently, all condominium associations should strongly consider obtaining full project approval.  If you would like further information regarding the FHA project approval process, please contact Stephen Marcus at smarcus@meeb.com or 781-843-5000 (105).