Markdown_files/FHA handbook/page_848.md

## II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT

### C. Condominium Project Approval

#### 2. Project Eligibility

##### (B) Standard

###### (1) Existing Construction

The acceptable level of Owner Occupancy Percentage is at least 50 percent of the total number of Units.

###### (2) New Construction - Complete Condominium Projects

For Complete Condominium Projects and Gut Rehab conversions, the acceptable level of Owner Occupancy Percentage is at least 30 percent of the total number of declared Units in the Condominium Project.

##### (C) Exception for Existing Construction

Existing Construction Condominium Projects that are greater than 12 months old, with an Owner Occupancy Percentage of at least 35 percent and less than 50 percent are eligible for approval with the following conditions:

- Applications must be submitted for processing and review under the HRAP option; and
- No more than 10 percent of the total Units are Units in Arrears (does not include late fees or other administrative expenses).

##### (D) Required Documentation

Form HUD-9992 must be submitted.

##### (E) Calculation

For the sole purposes of calculating the Owner Occupancy Percentage, the numerator of the calculation for a multi-phased Condominium Project includes the total number of the following Units in the first declared Legal Phase and cumulatively in subsequent Legal Phases, or for a single-phased Condominium Project, all of the following Units in the numerator of the calculation:

- Any Unit that is occupied by the owner as their place of abode for any portion of the calendar year and that is not rented for a majority of the calendar year;
- Any Unit listed for sale, and not listed for rent, that was previously occupied by the owner as their place of abode for any portion of the calendar year and that is not rented for a majority of the calendar year; or
- Any Unit sold to an owner who intends to occupy the Unit as their place of abode for any portion of the calendar year and has no intent to rent the Unit for a majority of the calendar year.

**Handbook 4000.1 789**  
**Last Revised: 01/10/2025**