The Federal Housing Administration
extended deadlines for condominium projects seeking to renew their mortgage insurance with the federal agency. New guidelines
established by the FHA in 2009 require that condo projects be recertified and approved every two years.
According to the agency, all projects from lenders that received approval before Oct. 1, 2008, were supposed to be recertified by Dec. 7. However, the deadline for approval has now been extended based on when the property was originally approved for funding.
"The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions," the FHA said in a letter.
The new deadlines are as follows:
- Projects approved between 1972 and 1980 must be recertified by Dec. 31.
- Projects approved between 1981 and 1985 must be recertified by Dec. 31.
- Projects approved between 1986 and 1990 must be recertified by May 31, 2011.
- Project approved between 1991 and 1995 must be recertified by July 31, 2011.
- Projects approved between 1996 and 2000 must be recertified by Aug. 31, 2011.
- Projects approved between 2001 and 2005 must be recertified by Sept. 30, 2011.
- Projects approved between 2006 and September of 2008 must be recertified by March 31, 2011.
The FHA said it currently provides mortgage insurance financing to more than 40,000 condo projects, 25,000 of which are required for recertification.
Write to Christine Ricciardi