The Denver HOC Condominium Team, which reviews applications for FHA approval of condominium projects is charged with determining whether condominium communities are eligible for approval of FHA backed loans. As a part of that review, the Team determines if the community meets the established guidelines. Criteria includes a review of delinquency rates, occupancy rates, reserve ratios and overall financial condition of the community. Arguably valid criteria.
As many of you know, the HOC offices across the country have become notorious over the last several years for adding additional requirements that are not stated in the guidelines, but they have gone too far now. In a recent rejection, the Denver HOC Condominium Team rejected an application until, among other things, the association “Provide a new Appendix A that does not have any white out.” Appendix A is a document signed by the submitter who in this case was out of the office so her name was “whited-out” and another name was added and that person signed and dated the document. I am flabbergasted at the dollars and hours being wasted on this type of ridiculous review. This makes a joke of the entire condominium approval process and undermines any possible good that could come from the review.