On Friday, August 29, 2014, the Federal Housing Administration (FHA) issued Mortgagee Letter 2014-17, which extends the temporary condominium project approval guidelines issued in 2011 for two additional years (until August 31, 2016). The purpose of the extension is to allow the FHA to issue formal rules to replace these temporary guidelines. Many industry representatives, including the Community Associations Institute (CAI) and Hill Wallack LLP, have criticized the FHA for creating standards for project approval by issuing “guidelines” rather than going through a formal rule-making process, which would allow public comment prior to finalization of the rules. This formal rule making process, which is consistent with the Federal Administrative Procedures Act, will finally allow interested parties to participate in the creation of the permanent FHA standards.
To review the complete FHA’s Mortgagee Letter 2014-17, click here.
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