FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Two- to Four-Unit Condominium Project (10/15/2019)

FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Two- to Four-Unit Condominium Project (10/15/2019)

e. Two- to Four-Unit Condominium Project (10/15/2019) i. Definition A Two- to Four-Unit Condominium Project refers to a Condominium Project that comprises of at least two, but no more than four, one-family dwelling Units that are each separately owned with separate legal descriptions. ii. Standard All general FHA Condominium Project Approval requirements are applicable except: • if state law does not require the creation of an annual budget or annual financial statements, a signed and recorded memorandum of understanding may be provided in lieu of the financial documents. The memorandum of understanding must define the individual Unit owner’s responsibilities for maintenance/repair/replacement of common areas including sidewalks, driveways, and common walls (includes side by side or vertical type Units) and must provide for a procedure for splitting any shared maintenance costs; • the project must have an Owner Occupancy Percentage of 75 percent owner- occupied; and • no Units in Arrears. iii. Required Documentation The following documents must be submitted: • documentation of the verification of compliance with the Two-to Four Unit Condominium Project requirements; • annual budget, financial statements or memorandum of understanding if applicable; and • documented evidence that each Unit is separately owned with a separate legal description. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT C. Condominium Project Approval 3. Project Approval Submission Handbook 4000.1 802 Last Revised: 11/26/2025

Source: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Two- to Four-Unit Condominium Project (10/15/2019) · source URL · snapshot 8c03836f77f317e1