CAI Alert: Federal Government Shutdown to Affect Condominium Approvals

This is an alert from CAI’s Government and Public Affairs Department:

According to the U.S. Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA) will not accept or process most condominium approvals or renewals during a federal government shutdown. Because Congress and President Obama did not agree to a temporary spending measure by midnight on September 30th, many federal agencies and departments will cease non-emergency operations today, October 1st.

According to a contingency plan prepared by HUD, FHA review of condominiums processed through the HUD Review and Approval Process (HRAP) will be suspended.   Accordingly, FHA will not accept new HRAP condominium approval and renewal   requests during a shutdown and will not make approval or renewal determinations on previously submitted HRAP packages.

HUD’s contingency plan has designated operation of FHA automated systems as an essential service, thereby allowing key FHA operations to continue. This means FHA will continue to endorse mortgage loans during a government shutdown. Due to FHA automated systems availability, approved lenders will be able to process condominium approvals through FHA’s automated DELRAP system.   The DELRAP approval process is only available to select mortgage lenders and   condominium associations do not have direct access to this FHA approval option.

According to HUD, only 359 of 8,709 department employees will report to work during a federal government shutdown. During a government shutdown non-emergency employees are prohibited from performing any work, which includes responding   to emails, returning telephone calls, or opening mail.

Click here to review HUD’s contingency plan, which includes an FAQ on HUD operations during a government shutdown.

CAI  Government Affairs represents the interests of the 62.5 million people living and working in America’s community associations on legislative and regulatory issues at the local, state, and federal level of government. Contact CAI’s Government Affairs Department at government@caionline.org   or (888) 224-4321 with any questions.

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