The U.S. Department of Housing and Urban Development (“HUD”) has published FAQs on the latest revisions to the condominium approval guidelines that were published last Thursday in HUD Mortgagee Letter 2012-18. These latest revisions will remain in effect until August 31, 2014 – unless further extended by the Federal Housing Administration (“FHA”).
During this period of time, it is anticipated that HUD will continue to work on proposed rules for FHA-approved condominiums and publish those proposed rules in the Federal Register for public comment prior to adoption of any final rules. Since HUD has been painfully slow and ineffective in dealing with real world concerns with the condominium approval guidelines to date, we can only hope these bureaucrats will shock us with their efficiency in moving forward. In the meantime, the temporary revisions to the guidelines are at least a step in the right direction.