{"id":41934,"date":"2022-08-08T16:58:53","date_gmt":"2022-08-08T16:58:53","guid":{"rendered":"https:\/\/www.kite47.com\/?p=41934"},"modified":"2022-08-08T17:06:23","modified_gmt":"2022-08-08T17:06:23","slug":"does-fha-have-a-formal-definition-of-a-site-condo-5","status":"publish","type":"post","link":"https:\/\/kite47.com\/index.php\/2022\/08\/08\/does-fha-have-a-formal-definition-of-a-site-condo-5\/","title":{"rendered":"Does FHA have a formal definition of a “site condo”?"},"content":{"rendered":"Does FHA have a formal definition of a “site condo”?<\/title><\/p>\n<p>“I received information from a client that FHA recently issued a directive in Mortgagee Letter 2011-22 that “site condos” are to be placed on FNMA form 1073. I know one when I see one but I wondered if FHA has the same concept that I do. If anyone can tell me where in the maze of FHA I can see a copy of their definition I would appreciate the help.”<\/p>\n<p>It just so happens that I own a property down in TN that is a “Site Condo” so the question spurred me on to do a little digging! What I found was HUD’s Mortgagee Letter 2011-12<\/p>\n<p>Prior to the release Mortgagee Letter ML11-22, HUD had exempted so-called \u201cSite Condominiums\u201d from the requirement to become approved in order for FHA financing to be allowed within the project. ML11-22 clarifies what a Site Condominium is in order for it to not be required to obtain HUD’s approval.<\/p>\n<p>Site Condo – A site condominium is defined as a single family totally detached dwelling (no shared garages or any other attached buildings) encumbered by a declaration of condominium covenants or condominium form of ownership.<\/p>\n<p>Pg. 19, Unique Projects, section 1.8.1\u00a0of the\u00a0(Condominium Project Approval and Processing Guide) further outlines and defines what a Site Condo is:<\/p>\n<h2>Appraisal Scoop<\/h2>\n<ul>\n<li>Single family totally detached dwellings (no shared garages or any other attached buildings or e.g.<!--more--> archways, breezeways); and<\/li>\n<li>Are encumbered by a declaration of condominium covenants or condominium form of ownership; and<\/li>\n<li>The condominium unit consists of the entire structure as well as the site and air space and are not considered to be common areas or limited common areas; and<\/li>\n<li>Insurance and maintenance costs are totally the responsibility of the unit owner; and<\/li>\n<li>Any common assessments collected will be for amenities outside of the footprint of the individual site.<\/li>\n<\/ul>\n<p>OK!\u00a0 So I\u00a0know what a Site Condo IS, but\u00a0I thought we always reported them on the Fannie Mae 1004 appraisal report.\u00a0 Right?\u00a0 That WAS true . . . until this ML.<\/p>\n<p>Appraisal data is collected and reported on Fannie Mae form 1004 , in accordance with the Valuation Protocols, Appendix D of HUD Handbook 4150.2.<\/p>\n<p>However, THIS ML and the Guide clarify, expand, consolidate and update existing guidance, and replaces MLs 2009-46 a, 2009-46 b and 2011-03.<\/p>\n<p>Although not subject to the general condominium approval requirements, the applicable ADP codes for Site condominiums are 731 (Adjustable Rate Mortgages) and 734.<\/p>\n<h2>Comments<\/h2>\n<p>“I received information from a client that FHA recently issued a directive in Mortgagee Letter 2011-22 that “site condos” are to be placed on FNMA form 1073. I know one when I see one but I wondered <a href=\"https:\/\/1stamericanloan.com\/pawn-shops-ga\/\">https:\/\/1stamericanloan.com\/pawn-shops-ga\/<\/a> if FHA has the same concept that I do. If anyone can tell me where in the maze of FHA I can see a copy of their definition I would appreciate the help.”<\/p>\n<p>It just so happens that I own a property down in TN that is a “Site Condo” so the question spurred me on to do a little digging! What I found was HUD’s Mortgagee Letter 2011-12<\/p>\n<p>Prior to the release Mortgagee Letter ML11-22, HUD had exempted so-called \u201cSite Condominiums\u201d from the requirement to become approved in order for FHA financing to be allowed within the project. ML11-22 clarifies what a Site Condominium is in order for it to not be required to obtain HUD’s approval.<\/p>\n<p>Site Condo – A site condominium is defined as a single family totally detached dwelling (no shared garages or any other attached buildings) encumbered by a declaration of condominium covenants or condominium form of ownership.<\/p>\n<p>Pg. 19, Unique Projects, section 1.8.1\u00a0of the\u00a0(Condominium Project Approval and Processing Guide) further outlines and defines what a Site Condo is:<\/p>\n<h2>Appraisal Scoop<\/h2>\n<ul>\n<li>Single family totally detached dwellings (no shared garages or any other attached buildings or e.g. archways, breezeways); and<\/li>\n<li>Are encumbered by a declaration of condominium covenants or condominium form of ownership; and<\/li>\n<li>The condominium unit consists of the entire structure as well as the site and air space and are not considered to be common areas or limited common areas; and<\/li>\n<li>Insurance and maintenance costs are totally the responsibility of the unit owner; and<\/li>\n<li>Any common assessments collected will be for amenities outside of the footprint of the individual site.<\/li>\n<\/ul>\n<p>OK!\u00a0 So I\u00a0know what a Site Condo IS, but\u00a0I thought we always reported them on the Fannie Mae 1004 appraisal report.\u00a0 Right?\u00a0 That WAS true . . . until this ML.<\/p>\n<p>Appraisal data is collected and reported on Fannie Mae form 1004 , in accordance with the Valuation Protocols, Appendix D of HUD Handbook 4150.2.<\/p>\n<p>However, THIS ML and the Guide clarify, expand, consolidate and update existing guidance, and replaces MLs 2009-46 a, 2009-46 b and 2011-03.<\/p>\n<p>Although not subject to the general condominium approval requirements, the applicable ADP codes for Site condominiums are 731 (Adjustable Rate Mortgages) and 734.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does FHA have a formal definition of a “site condo”? “I received information from a client that FHA recently issued a directive in Mortgagee Letter 2011-22 that “site condos” are to be placed on FNMA form 1073. I know one when I see one but I wondered if FHA has the same concept that I<a class=\"read-more\" href=\"https:\/\/kite47.com\/index.php\/2022\/08\/08\/does-fha-have-a-formal-definition-of-a-site-condo-5\/\"> […]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15537],"tags":[],"_links":{"self":[{"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/posts\/41934"}],"collection":[{"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/comments?post=41934"}],"version-history":[{"count":1,"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/posts\/41934\/revisions"}],"predecessor-version":[{"id":41935,"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/posts\/41934\/revisions\/41935"}],"wp:attachment":[{"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/media?parent=41934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/categories?post=41934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kite47.com\/index.php\/wp-json\/wp\/v2\/tags?post=41934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}