Special offer

FHA Condo Approvals – Leasing Restrictions Update

By
Mortgage and Lending with ReadySetLoan Condo Team LLC

FHA Condo Approvals - Leasing Restrictions Update

 **Update: ML11-22 Condominium Project Approval and Processing Guide made the following acceptable leasing restrictions permanent**

 

However, HUD made a determination that an association should be allowed to enforce restrictions in the leasing of units in a complex so long as the restrictions were not contrary to Fair Housing laws and were in accordance with the complex's CC&R's and by-laws.

 

At least for the next 12 months, the following restrictions will be covered by this waiver:

·    Leases must be in writing and conform for the project's by-laws and declaration.

·    The Association may request and be provided with a copy of the lease.

 ·    The Association may not require that a tenant be approved by the association or its agent(s).

 ·    The Association may request and be provided with the names of all occupants of the unit.

 ·    Leases may not have an initial leasing term of less than 30 days.

 ·    The Association may establish a maximum allowable lease term.

 ·    The Association may establish a maximum number of units that may be rented in the complex (provided, of course, that this does not exceed the maximum allowed by FHA to maintain the owner-occupancy requirement.)

 Along with the Affordable Housing ruling that HUD issued last month, I was pleased with HUD's "common sense" approach to this. It simply does not make sense to restrict any and all leasing restrictions since many of them only provide stability within the complex, as noted above.

 It also makes sense to provide leasing restrictions to disallow leases that violate the declaration and by-laws of a project.

Posted by

The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.

 

ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.

 

Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.

 


FHA/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

eric.boucher@readysetloan.com
ready set loan condo team

 

 CAI-CT logo

 Check out our article in Common Interest magazine on page 19!

Find Eric Boucher with ReadySetLoan Condo Team on Google+

ReadySetLoan Team
ReadySetLoan Condo Team LLC - South Windsor, CT
Residential, Commercial & Condo Financing Experts

This is an older article but I received an inquiry about the information provided and realized that I never updated it when the Processing Guide was released.  The information in the article was accurate except that the exceptions were made permanent by the Guide.

Feb 07, 2012 03:08 AM