FHA CERTIFICATION


Legal Note: Please be aware that we cannot offer legal advice; as always, a lawyer should be your first resource for legal advice.

In order for a condominium association to receive FHA approval there are six key requirements:

  1. No unit owner may own more than 10% of the units in the association. This requirement aims to eliminate multiunit ownership for investment in the association and have as many owner-occupied units as possible.        
  2. No more than 15% of the units can be more than 30 days past due on their assessments.
  3. A full budget review will take place and it must be determined that 10% of the association's operating funds is allocated to reserves.
  4. Right of first refusal may be in association's bylaws, but it cannot violate Fair Housing Act. 
  5. Association must be at least 50% owner-occupied
  6. No more than 25% of the floor space can be commercial space
  • In addition, associations must submit copies of their budget, insurance policy, declaration and bylaws, plat of survey, any management agreement, analysis of outstanding or pending litigation, and minutes from the last two meetings.
  • Root Realty, Inc. can assist with the hiring of a trusted and reliable 3rd party in order to make the association FHA approved. It is not standard practice for an association to apply directly. We can help gather all documents and work with the 3rd party to make sure the association presents everything necessary to receive FHA approval.

  Click here to search for FHA Approved Condominium Projects.