Feds Looking at Easing Up Financing Rules for Condo Developers - CoStar Group: "FHA currently requires that approved condominium developments have a minimum of 50% of the units occupied by owners. While having too few owner-occupants can detract from the viability of a project, requiring too many can harm its marketability, the agency said.
Through this proposed rule change, FHA is proposing to establish an allowable range between 25% and 75%. The range allows FHA to choose a specific percentage that is responsive to future market changes.
FHA is also looking at expanding the range for allowable nonresidential use.
FHA currently requires that the commercial/nonresidential space within an approved condominium development not exceed 50% of the project’s total floor area, and anticipates maintaining this as a requirement in the near term.
However, as the agency gains experience with this program, it may wish to modify this limitation and is therefore proposing to establish a range between 25% and 60%, it said.
FHA also has proposed reinstating spot approvals in unapproved condominium developments and to require condo projects to recertify their approval status every three years rather than the current two-year requirement.
'via Blog this'