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FHA Delays Implementation of New Condominium Rules

Author: New Jersey Association of REALTORS
Written On: Thu, 01 Oct 2009

The Federal Housing Administration (FHA) has delayed the implementation of rules that place condominium projects in FHA's 203(b) Single Family Program. These new rules were to originally take effect on October 1, 2009, but have now been delayed to apply to all mortgage applications received on November 2 or later.

On September 8, 2009, the NATIONAL ASSOCIATION OF REALTORS® (NAR) President Charles McMillan discussed NAR's recommendations for enhancing said rules at a meeting with FHA Commissioner David Stevens. NAR is calling for:

1. A reduction in the owner-occupancy requirement,
2. Eliminating or increasing the FHA concentration limit,
3. Reducing the pre-sale requirement, and
4. Clarification of the reserve study requirement.