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## II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
### C. Condominium Project Approval
#### 2. Project Eligibility
- **Gut Rehab (completed)**
- **Non-Gut Rehab**
- Two- to Four-Unit Condominium Project;
- Manufactured Housing; and
- Leasehold Interest.
##### ii. Ineligible Characteristics
FHA will not approve Condominium Projects with the following characteristics:
- Cooperative ownership;
- Condominium hotel or condotel;
- Mandatory rental pooling agreements that require Unit owners to either rent their Units or give a management firm control over the occupancy of the Units;
- Timeshare or segmented ownership projects;
- Multi-dwelling condominiums (more than one dwelling per Condominium Unit);
- Houseboat project;
- Continuing care facility;
- Coastal Barrier Resources System location; or
- Subject to adverse determination for significant issues as identified by FHA.
#### b. Phasing (10/15/2019)
##### i. Definition
Phasing refers to Condominium Projects that are legally declared in separate stages by amending and recording the governing documents.
Legal Phases refer to specific phases of a Condominium Project that allow additions to the Condominium Project and are defined by state authority.
##### ii. Standard
- Condominium Projects may be approved in stages as Legal Phases are completed; however, all completed Legal Phases must be evaluated.
- Each Legal Phase must be complete as demonstrated by the Certificate of Occupancy (CO) or its equivalent prior to submission of a Legal Phase.
- Legal Phases may be submitted for New Construction and Conversion (both Gut and Non-Gut Rehabilitation) Condominium Projects.
- The submitted Legal Phases must be independently sustainable without future planned Legal Phases, as demonstrated by the budget and financial documentation, such that the submitted Legal Phases of the Condominium Project will not be jeopardized by the failure to complete additional Legal Phases.
**Handbook 4000.1 786**
**Last Revised: 01/10/2025**