A Condominium Project is considered newly converted if the Date of Conversion (the date the legal documents were recorded) is within 24 months of the time of Condominium Project submission. Newly converted Condominium Projects can only be processed under the HUD Review and Approval Process (HRAP) option. For Gut Rehabilitation (Gut Rehab) conversion Condominium Projects, the Mortgagee must comply with the FHA Condominium Project Approval Requirements and the New Construction standards (HUD Handbook 4000.1, Section II.A.8.i.iii - Required Documents for Maximum Financing).
The work/repairs for both the Gut-Rehab and Non-Gut Rehab must be completed and documented as follows:
- For Gut-Rehabs, an engineering or architectural inspection, dated within 12 months, evidencing all rehabilitation work/repairs have been completed; and a Certificate of Occupancy or its equivalent must be provided.
- For Non-Gut Rehabs, evidence that all rehabilitation work/repairs have been completed.
For more information regarding condominium projects refer to:
- For Gut Rehabilitation and Non-Gut Rehabilitation see HUD Handbook 4000.1, Section II.C.2.d.ii at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
- Mortgagee Letter 2011-22, superseded in part by Handbook 4000.1, at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
- The FHA Condominium Mortgage Insurance page at https://www.hud.gov/program_offices/housing/sfh/ins/sfh_ins_condominiums
- To search for FHA-approved condominiums please visit https://entp.hud.gov/idapp/html/condlook.cfm
- To identify the jurisdictional HOC for the state where the condominium project is located please visit https://www.hud.gov/program_offices/housing/sfh/sfhhocs