FHA Condo Approvals – Avoiding Rejection Due to Budget Issues
Despite having helped dozens upon dozens of condominium associations to get approved with HUD, receiving the official email regarding the approval has not lost its excitement. It becomes even more gratifying when there have been complications with the submission package.
I began working with a project in Connecticut in January 2012, when the Association was working on their new budget. Luckily for the HOA, they contacted me prior to approving the budget because I suggested that it make modifications in two major areas:
· The budget did not contain a line item delegating funds to the reserve account.
· The Association did not have its reserve funds in a separate account; they were comingled with the operating funds.
Either of these would have resulted in HUD rejecting the submission. We were able to rectify these and the approved budget was acceptable to HUD.
The complications that we faced in acquiring the approval were internal to HUD. The project reviewer was requesting a copy of the property management agreement and that the property management company be named on the employee dishonesty insurance policy.
The problem was that there is no property manager! The Association is self-managed so these requests were erroneous. Nevertheless, the process was delayed until I was able to reach a supervisor who cleared it up.
Here is an excerpt from the email I received from the Treasurer of the Association in response to notifying her that her project was approved:
“You really have been a great help through this process. As you know, we are self-managed so our expertise and time is limited. Your guidance was invaluable!!”
It’s very gratifying to know that I was able to make such a difference for this Treasurer and the rest of the HOA. J
The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA. We have assisted nearly 200 condominiums and we can help your association.
ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.
Please contact us with any questions regarding FHA or VA condominium project approvals. You can email me at firstname.lastname@example.org or call me at 404-433-4565. I will be happy to answer any of your questions.
FHA/VA Condo Approval Specialist
404-433-4565 Cell Phone
860-644-3772 Fax Phone
Check out our article in Common Interest magazine on page 19!