FHA Recertification

Started by KerryL1 • 5 replies • 2101 views

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KerryL1 (California)
Posts: 14,550

Posted:

Our "full-service property mgmt. company" neglected to let us (the Board) know that our FHA certification was about to expire late last year and-- it did expire.

I recall when we first got certified, it was quite a project for our PM. I also have learned that we have to (re)submit the same forms or whatever as previously.

Have any of you had recent experience in FHA cert. or recert. Any advice so we can make sure our PM proceeds properly??

We do meet the criteria re: tenant/owner ratio and annual % we contribute to reserves.

We have not had VA cert. Is the process similar to FHA?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Kerry,

I can't help with the recert as we are not a condominium.

I just wanted to point out something you probably already know. It was the Board's responsiblity to know when the certification was up. It's nice if the PM reminds the Board. However, the Board should know without being reminded.

To help remembering in the future, you may want to make an Association calendar. I made one for our Association and it is referred to often. I've attached ours which will likely be a better explanation of what I am talking about.

Tim

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KerryL1 (California)
Posts: 14,550

Posted:

With respect, Tim, if we directors had to keep track of when our 20 annual contracts safe up for renewal, our taxes, our insurance policies, our fire marshal inspections, our elevator inspections, etc. are due AND solicit frequent bids, AND keep track of when various vendors' employees here are due for raises, and more, no one would be willing to serve on the board. It's hard enough as it is to get anyone to run for the Board.

These 211- resident twin towers with commercial Owners' ground floor suites and 150 + reserves components in three budget areas are exceedingly complex, which is why we have a full time PM and full-time Asst. mgr. Our contract specifies that the MC, in fact, attend to all of those matters.

I'm certain you know that I'm very aware that the the buck indeed stops with the Board.

Now, if you have any advice about FHA cert or recert, condominium or not, I'd like that very much. Because of the average sales prices of these condos, buyers rarely use such guaranteed loans; in fact, 40% of our transactions are all cash. Still it's nice to have it available.

Perhaps someone else can reply with VA or FHA info???? Many thanks!!

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By KerryL1 on 12/06/2014 7:07 PM
With respect, Tim, if we directors had to keep track of when our 20 annual contracts safe up for renewal, our taxes, our insurance policies, our fire marshal inspections, our elevator inspections, etc. are due AND solicit frequent bids, AND keep track of when various vendors' employees here are due for raises, and more, no one would be willing to serve on the board.

I'm certain you know that I'm very aware that the the buck indeed stops with the Board.

Well, I did provide a way to help track those things which I thought was very easy.
I wasn't suggesting that the Board does the work (as you have a PM/MC).
However, the Board should, in my opinion, be able to look at a few pieces of paper and see if a contract or re-certification is due, place the issue on the agenda and ask the PM each meeting for a status report.

Quote:

Posted By KerryL1 on 12/06/2014 7:07 PM

Now, if you have any advice about FHA cert or recert, condominium or not, I'd like that very much. Because of the average sales prices of these condos, buyers rarely use such guaranteed loans; in fact, 40% of our transactions are all cash. Still it's nice to have it available.

Here is what I was able to gather from internet searches:

FHA certification must be renewed every two years. It is important for condominium associations to monitor the expiration date since the FHA will not notify you that the certificate is about to expire. Condominium associations must recertify no earlier than six months before the expiration date and/or no later than six months after the expiration date. In the event there is a lapse, the certification process is identical to the recertification process.

HUD List of Mortgagee Letters

Mortgagee Letter 2012-18Temporary Approval Provisions for the Federal Housing Administration (FHA) Condominium Project Approval Process (which was extended by Mortgagee Letter 2014-17.

The Basic Guidelines for FHA Condo Approval 2014

FHA Condo Approval Required Document List 2014

CONDOMINIUM PROJECT APPROVAL and PROCESSING GUIDE From HUD. A 2011 document but the only one I could located on the HUD site.

FHA Condo Project Approval Guidelines from fha.com

TimB4 (Tennessee)
Posts: 21,059

Posted:

Here is another link, which was made available through the Community Assocaitions Network.

The CAI Guide to FHA Certification a September 2014 publication.

Since this is also a pdf document, it can be downloaded to your own computer for reference as well. This is done by clicking on the >> and select presentation mode (which will open the document in adobe acrobat). Once in presentation mode, you can download the document.

KerryL1 (California)
Posts: 14,550

Posted:

Thanks for the fine list of references, Tim. They might help others too!

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