FHA Condo Approvals – A Leasing Restriction Exception
Under typical situations, there are circumstances whereby HUD will allow leasing restrictions in condominium projects.
Condominium projects can set minimum and maximum lease terms. They can require that the leases include language that the tenants must follow the Association’s rules and regulations.
There are certain restrictions that HUD absolutely will not accept. One of those is it will not allow a requirement that all potential tenants must be approved by the Board. HUD feels that it opens up the HOA to Fair Housing violations but also restricts the unit owners’ rights to free ownership.
Under normal circumstances, HUD will not approve a condominium project that outright restricts the leasing. It requires that at least one unit be allowed to be leased.
However, in the case where a project is 100% Affordable Housing, the CC&R’s can prohibit leasing altogether.
The caveat here is that the Affordable Housing language must be acceptable to HUD’s guidelines.
Image courtesy of anankkml/freedigitalphotos.net
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!