In the August 15, 2019, Federal Register (84 FR 41846) and the August 14, 2019, update to FHA Single Family Housing Policy Handbook 4000.1, FHA issued new and revised regulations and new and revised Handbook requirements, respectively, which establish a new condominium approval process, effective October 15, 2019.
This new condominium approval process includes but is not limited to the following:
• Adds a Direct Endorsement Lender Review and Approval Process (DELRAP) authority requirement for mortgagees that choose to participate in the review and approval of condominium projects;
• Introduces a new single-unit approval process for individual condominium units to be eligible for FHA-insured financing if the condominium project is not FHA approved;
• Extends the recertification requirement for approved condominium projects from two to three years;
• Allows more mixed-use condominium projects to be eligible for FHA insurance.