Markdown_files/FHA handbook/page_819.md

## II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT

### C. Condominium Project Approval

#### 2. Project Eligibility

- Governing documents designate the insurance coverage maintained by the Unit owners and the Condominium Association; and
- MHCP is unable to satisfy FHA insurance requirements.

If the governing documents require the Unit owners to maintain all applicable property insurance coverage for the dwelling, site area, and any Personal Property contained within, the MHCP is not required to maintain:

- A blanket Hazard Insurance policy, provided the governing documents require the Unit owners to maintain individual Hazard Insurance;
- A Liability Insurance policy, provided the governing documents require the Unit owners to maintain individual Liability Insurance; and
- A Flood Insurance policy, provided that the governing documents require the Unit owners to maintain individual Flood Insurance if the Unit has been identified as located in a Special Flood Hazard Area (SFHA).

##### (b) Detached Condominium Housing Project

If the governing documents require the Unit owners to maintain all applicable property insurance coverage for the dwelling, site area, and any Personal Property contained within, the DCHP Condominium Association or HOA is not required to maintain:

- A blanket Hazard Insurance policy, provided the governing documents require the Unit owners to maintain individual Hazard Insurance;
- A Liability Insurance policy, provided the governing documents require the Unit owners to maintain individual Liability Insurance; and
- A Flood Insurance policy, provided the governing documents require the Unit owners to maintain individual Flood Insurance.

The Condominium Association or HOA must carry master or blanket insurance for Structures/improvements that are considered common areas of the project outside the footprint of the individual site.

##### (c) Common Interest Housing Development

If the governing documents require the Unit owners of the detached Single Family homes, Site Condominiums, duplex, or two- to-four units within the project to maintain and carry property insurance for the dwelling, site area, and any Personal Property contained therein, the Condominium Association or HOA is not required to maintain:

- A blanket Hazard Insurance policy, provided the governing documents require the Unit owners to maintain individual Hazard Insurance;
- A Liability Insurance policy, provided the governing documents require the Unit owners to maintain individual Liability Insurance; and
- A Flood Insurance policy, provided the governing documents require the Unit owners to maintain individual Flood Insurance.

**Handbook 4000.1**  
**Last Revised: 01/10/2025**  

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