Federal Housing Administration Proposes New Rules For Condominium Market
As conditions continue to shift in the condominium market, the Federal Housing Administration has proposed new regulations to govern the approval process this week.
The new regulations will ultimately give the administration leeway to specify new owner-occupancy, commercial and single-unit thresholds. Currently, the FHA requires approved condo developments to have at least 50% of the units occupied by owners, but the proposed rules would extend that range to between 25% and 75%.
The new rules also would establish a range for the amount of commercial space allowed within an approved development from less than 50% to between 25% and 60%, CoStar reports.
The goal? To modify condo rules in an effort to guarantee project viability that is flexible and more responsive to the market. [CoStar]