It appears the fall-out of condominium communities losing or not renewing their FHA certifications is now beginning to hit associations. We are starting to experience a notable increase in calls from managers, board members, mortgagees, brokers, and owners in the past month concerned and/or upset about the FHA certification process. Most associations that were not approved or re-certified in the past 2 years have now had their certifications expire, and thus, are finding out what happens when they have not re-certified. Additionally, some communities that obtained certifications in 2010 when the guidelines and certification process first changed will now be up for re-certification in 2012. Unfortunately, the timeline for FHA review of applications for approval and/or re-certification is approximately 30-45 days, so if your community’s certification has expired or is about to expire, you will likely not be able to avoid a lapse in your certification. As a result, owners will not be able to obtain FHA insured loans or reverse mortgages within the community until the community is re-certified or approved. We recommend you review your community’s FHA status as soon as possible and discuss your options before it is too late. If you have questions regarding the FHA certification process, please feel free to contact us at 303-991-2070.
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