FHA Condo Approval Specialist: FHA Condo Approvals – The By-laws Aren’t Recorded or Signed!

FHA Condo Approvals – The By-laws Aren’t Recorded or Signed!

FHA Condo Approvals – The By-laws Aren’t Recorded or Signed!

I have run into this dozens of times and this simple work-around is one of many that we have learned from working with HUD.  The Condominium Project Approval and Processing Guide does not mention this nor do any of the Mortgagee Letters so I thought it would be helpful to post.


As mentioned in a previous article, when submitting a condominium project for approval with HUD, a recorded copy of the By-laws is not necessary if the By-laws were not recorded along with the Declaration or Public Offering Statement.


I have spoken with a couple of associations who recently recorded their By-laws because they thought it was necessary in order to obtain an approval with HUD.  It may not be required so don’t waste your money!


In lieu of providing a recorded copy of the By-laws, an unrecorded, signed copy may be provided.


What if the copy of the By-laws isn’t signed?  What if the developer can’t be located?  Or worse…what if the developer has passed on??


Believe it or not, we can leave the developer out of it entirely!  A current sitting member of the Board of Directors can sign on the signature page.  The member can simply sign and date the form and print his/her name and title as a member of the Board.  Be sure to date the form the date it was signed; there is no need to back-date it.


By signing the form, it is demonstrating to HUD that the By-laws provided in the submission package are those that are currently in effect and the signature of the Board member is attestation of this.


I usually supply a brief letter of explanation noting that the By-laws are not recorded and that the copy on hand wasn’t signed by the developer.

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 askeric@readysetloan.com 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

ready set loan condo team


 CAI-CT logo

 Check out our article in Common Interest magazine on page 19!

Find Eric Boucher with ReadySetLoan Condo Team on Google+

Comment balloon 0 commentsReadySetLoan Condo Approval Team • July 10 2013 10:01AM