08/23/10 HUD issued updated/revised processing requirements for recertifying FHA approved condominium projects that expire 12/07/10. In this same document HUD mandated that all projects which received approval prior to October 1, 2008, will require recertification on or before December 7, 2010 (more than 10,000 in the United States). Further, every FHA project certification will require recertification 2 years from the date of issuance.
Should a FHA approved condominium project not complete the recertification process prior to 12/07/10, it will convert to “Expired” status. FHA case numbers will not be issued on condominium projects with “Expired” status, hence, FHA backed financing will no longer be available in those projects.
FHA Recertification in Simple Terms
The long story short is that dozens of FHA certified Nashville condo projects are set to expire in just days. There is no way to determine which of these projects are working through the recertification process, but as of December 3rd there are a few notable condo projects that sit in the crosshairs: Bristol on Broadway, the Continental, Encore, Four Seasons, Georgetown, Normandy Place, Park at Melrose, and Werthan Lofts phases IV & V.
For current owners, this will have a material impact on re-sales if prospective buyers do not have access to very low downpayment FHA loans. I highly recommend that you check with your condo association manager if you happen to own a condo or townhome in a project that happens to be slightly older to ensure your FHA certification is not in jeopardy.
Search for approved condo projects and developments directly on HUD’s website: https://entp.hud.gov/idapp/html/condlook.cfm