Markdown_files/FHA handbook/page_830.md

## II. Origination Through Post-Closing/Endorsement

### C. Condominium Project Approval

#### 2. Project Eligibility

- A copy of the builder’s policy or the required documentation in Insurance Coverage;
- A CO or its equivalent; and
- Photographs of each building.

##### ii. Newly Converted

A Condominium Project is considered newly converted if the Date of Conversion is within 24 months of the time of Condominium Project submission.

**Date of Conversion** refers to the date that the legal documents were recorded. Newly converted Condominium Projects can only be processed under the HRAP option.

###### (A) Gut Rehabilitation Conversion

###### (1) Definition

Gut Rehabilitation (Gut Rehab) refers to the renovation of a Property down to the shell of the structure, including the replacement of all Heating, Ventilation and Air Conditioning (HVAC) and electrical components.

###### (2) Standard

Gut Rehabs must meet the general FHA Condominium Project approval requirements and New Construction standards.

###### (3) Required Documentation

The following documents must be submitted:

- Form HUD-9992;
- An engineering or architectural inspection, dated within 12 months, evidencing all rehabilitation work/repairs have been completed; and
- A CO or its equivalent.

###### (B) Non-Gut Rehabilitation

###### (1) Definition

Non-Gut Rehabilitation (Non-Gut Rehab) refers to rehabilitation work that is not structural and is limited to minor property repairs and improvements.

###### (2) Standards

Non-Gut Rehabs must meet the standards for Existing Construction.

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**Handbook 4000.1 808**  
**Last Revised: 01/10/2025**