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.