View Rule

Through this rule, HUD will amend its policies and procedures to insure mortgages for single family condominium units in multifamily projects. The new rule will involve dwelling units that are attached, detached, semi-detached or manufactured as well as undivided interest in the common areas and facilities which serve the projects. The change will add clarification and ensure compliance with the Housing and Economic Recovery Act (HERA) of 2008. HERA moved the insurance of a single unit condominium unit from Section 234 to Section 203 and there were no existing regulations under Section 203, thus requiring rulemaking.  HERA also granted FHA the authority to issue condominium policy guidance using administrative notices until such time as the final condominium rule is promulgated.  Further, until such time as a final rule is published, the policy guidance issued by administrative notice also serves as the condominium regulations.