Financing insured by the Federal Housing
Administration (FHA) offers favorable terms and represents the bulk of loans
currently available to prospective homeowners.
Many condominium associations are therefore seeking FHA approval. However, that approval will not be
forthcoming if their governing documents do not meet FHA’s standards.
Among a number of other requirements, the FHA has
specified guidelines for acceptable leasing restrictions in condominiums. Three of those guidelines deserve special
attention. First, leasing restrictions
must permit at least one unit to be leased.
Second, leasing restrictions may not require that a prospective tenant be
approved by the condominium association or its agents. Third, legal restrictions must not permit
leasing for periods of less than thirty days.
Condominium boards should consider giving themselves the gift
of quality legal representation this holiday season.
This will allow them to more effectively promote peace and prosperity in their communities during the year to come.
