Beginning October 15, 2019, new FHA guidelines will be put into effect for condominium associations across nation, with the intent of promoting affordability and the sustainability of home ownership within condominium associations.
The Federal Housing Authority aims to achieve this goal with changes to several key areas, with perhaps the most significant one being the spot-approval of a unit within a community which has not currently gone through the process of FHA certification at the Association level.
Other changes include extending the length of time of approvals from two years to three, lowered owner-occupancy rates for communities with stable financials, easing the commercial space restrictions, increasing the FHA concentration rate and attempting to simplify the recertification process.
The vast majority of FHA qualified condominium buyers are first-time buyers that have never owned a home. In states like CT and RI which have seen an underwhelming recovery in the real estate sector, the increased access to FHA mortgages could be a boon for homeowners associations all across the region.
These changes which are backed by association industry leaders and management companies like Northeast Property Group, can help reduce the expense for currently FHA approved communities by reducing the frequency of recertification, help buoy home values via increased supply of FHA-approved buyers, and provide the opportunity of the benefits of homeownership to a historically underserved portion of the population.