Recertification

The FHA first started approving condo projects back in the 1980s and has approved over 50,000 projects in over 30 years! It used to be that once approved, the approval was good from then on and there was no need to get recertified (reapproved).  However, in 2009 in response to new rules by Congress, the FHA announced approvals would only be valid for 2 years and every project that was previously approved would have their approval expire at the end of 2010.  Because the FHA doesn’t have contact information for each project, they are unable to provide notice of the impending expiration.

Realizing too few projects knew about their expiration by late 2010, they pushed out and staggered the expirations dates across 2011, based on the original approval date.  Today, virtually all projects have expired.

Of the over 50,000 projects once approved, 8,000 have been dropped from the FHA database. Of the remaining 42,000, about 8,000 (19%) have applied for recertification but only about 5,600 (14%) of those have been approved. About 30% of all applications are being rejected or withdrawn (to avoid rejection). HUD has been swamped with applications but has brought on help to handle the deluge. Their Philadelphia office serves as the condo approval hub, with over 40 people dedicated to the approval process. Despite the spike in activity, they continue to meet their public goal of approving all submissions, including recertification submissions,within 30 days

You can check on your project’s expiration date at : https://entp.hud.gov/idapp/html/condlook.cfm  

The recertification process is identical to the full project approval process.  Effective June 30, 2011, the FHA did away with the streamlined recertification option and essentially made the recertification requirements equivalent to a full project submission for an existing building.  The only difference is recertification applicants have to check a box that conditions have or haven’t changed since the last FHA approval.  All of the approval criteria are identical. The FHA does not charge a fee to process a recertification submission.

Condos may begin recertifying up to six months before their expiration and up to six months afterward. If approval is not done within six months of the expiration, the submission will not be considered a recertification but a new application.