New FHA Guidelines and Approval Process for Community Associations

On December 7^th, 2010 the Federal Housing Administration (FHA) announced the NEW expiration dates of their Condominium/Homeowners Associations Project Approvals and Re-Certifications. These new expiration dates will affect Community Associations and Unit Owners throughout the country.

It is recommended that all Community Associations wishing to obtain FHA Certification begin the lengthy application process as soon as possible.

In recent weeks we have received many questions about the FHA Certification process. A majority of the questions we receive have been regarding the length of time that it will take to get a community project approved by the FHA. We have also received a number of questions on the possible pros and cons to FHA Certification, as well as concerns on the differences between the FHA new project approval and the project re-certification process.

The FHA has set the following deadlines for community project approvals. Due to the large number of communities nationally, it is important to remember that time is of the essence in order to avoid the potential delays in application processing. 

Initial Project Approval Date	New FHA Expiration Date
1972 - 1985	December 31, 2010
1986 – 1990	May 31, 2011
1991 - 1995	July 31, 2011
1996 – 2000	August 31, 2011
2001 - 2005	September 30, 2011

Although it may seem simple, a very common question we get asked is why go though the process and why get certified? The answer is quite simple. It is estimated that approximately 40% of all new loans will be insured by the FHA. The FHA has the most aggressive loan programs in the market and without them the owners of the properties within the association would be at an EXTREME disadvantage when it comes to selling and/or refinancing their homes. Not being FHA approved would obviously drive property values down in your neighborhood. 

Community Board Members are encouraged to begin the approval or recertification process as early as possible, as it is still uncertain if any further extensions for project approvals will be granted.

Fortunately, we have been helping Condominium Association communities get FHA approvals since the new guidelines have been in effect. We’ve successfully helped many Associations obtain FHA Recertification or FHA New Project Approvals and we recommend that all Associations begin the process or recertification immediately. 

Do not hesitate to contact us with any questions about these deadlines or the FHA application process. We look forward to the opportunity of getting your Community Association approved by the FHA.