3.1.31 Condominiums

A. A project built and platted as a condominium complex, but that is now operating as a rental project, may be refinanced under Section 223(f) if the condominium regime is held by a single owner with no individual unit ownership and the property meets other program guidelines, including the minimum occupancy standards.

B. Condominium ownership regimes may be recorded if the property is otherwise operated as a rental project with a single ownership entity owning all the apartments. Separate condominium units may be established for commercial use and for housing use which must include all the residential apartments. The insured loan must be secured by a mortgage on the rental apartments and mortgageable commercial space. Joint use and maintenance agreements and easements between the insured portion and any separately demised condominium portion must be defined, and all condominium fees and expenses must be equitably allocated.

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Chapter 3 Programs 3.1 General Program Requirements

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C. The Regional Center or Satellite Office Director may consider a waiver for a condominium building with a limited number of individually owned units (i.e., 10% or less of total units) if all such units are located in a separate building or in a separate section of a single building apart from the rental units. HUD will not consider a waiver if any ownership units are interspersed with the rental units.