I typically write 3-4 articles per week about FHA and VA condo project approvals. By far, the most common inquiries that I receive are about what qualifies a project as a site condo in the eyes of FHA. I received such a call from an attorney in Irvine, CA, just yesterday.
The attorney called after reading my blog about site condos. He said that he is working with a developer to assist in writing the legal governing documents. The desire is to develop the condominium such that it meets the requirements to be deemed a site condo project and not need to go through the FHA approval process.
From the conversation, it was determined that the project would meet the site condo requirements: all units are detached; the unit owner is responsible for the interior and exterior of the structure and the land; and the unit owner is responsible for the insurance of the structure and the parcel of land.
However, the developer would like to make it mandatory that the front yards be maintained by the association, and not the unit owners. I didn’t ask why but I would assume so that there was a consistent and uniform curbside appearance. This would obviously improve the aesthetic value of the neighborhood.
I told the attorney that this would not fly with FHA. At its most fundamental level, a site condominium project must have the “look and feel” of a neighborhood of single-family detached homes but be under a declaration of condominium. In such a neighborhood devoid of an association, the home owners would be responsible for the care of the front yards.
Furthermore, the unit owner in a site condo must be responsible for everything within the boundaries of the unit, which includes the land. The association cannot be responsible for the maintenance or insurance of anything within the unit boundaries.
The attorney agreed and said that he had received this information and wanted to verify it before proceeding with the drafting of the documents.
For the remainder of the year, ReadySetLoan Condo Team LLC is offering free processing for VA condo approvals for all condominium clients who retain us for an FHA condo approval. If you have questions about VA or FHA condo approvals, please contact us for a free consultation.
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 email@example.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
Check out our article in Common Interest magazine on page 19!