Markdown_files/FHA handbook/page_821.md

## II. Origination Through Post-Closing/Endorsement

### C. Condominium Project Approval

#### 2. Project Eligibility

Above the 100-year return frequency flood elevation, and Flood Insurance is obtained.

##### (3) Required Documentation

The following documentation must be submitted:

- If applicable, FEMA LOMA;
- If applicable, FEMA LOMR; or
- If applicable, FEMA NFIP Elevation Certificate FEMA Form FF-206-FY-22-152.

##### ix. Commercial/Nonresidential Space

###### (A) Definitions

**Commercial/Nonresidential Space** refers to floor area allocated to:

- Retail and commercial square footage (excludes Live/Work Units);
- Multilevel parking garage square footage that is separate from multilevel parking garage square footage allocated to residential Unit owners;
- Building common areas not reserved for the exclusive use of residential Unit owners; and
- Any square footage that is owned by a private individual or entity outside of the Condominium Association.

**Residential Space** refers to floor area allocated to:

- All Unit square footage;
- All building common area square footage exclusively for the use of residential Unit owners; and
- All parking garage square footage allocated to residential Unit owners.

Parking lot square footage is not considered Residential or Commercial/Nonresidential Space.

**Total Floor Area** refers to all Residential Space and Commercial/Nonresidential Space.

###### (B) Standard

The Condominium Project’s Commercial/Nonresidential Space must not exceed 35 percent of the Condominium Project’s Total Floor Area.

###### (C) Exception

The Condominium Project’s Commercial/Nonresidential Space may exceed 35 percent of the Condominium Project’s Total Floor Area up to a maximum of 49 percent if it is determined that the residential character of the Condominium Project is maintained. To determine that the residential character is maintained, the economy.

---

**Handbook 4000.1 800**  
**Last Revised: 01/10/2025**