Special requirements for condominiums.

CFR · 2024-01-01 · US · Title 7

RHS loans may be made for condominium units under the following conditions: (a) The unit is in a project approved or accepted by U.S. Department of Housing and Urban Development (HUD), the Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac). (b) The condominium project complies with the requirements of the condominium enabling statute and all other applicable laws. Any right of first refusal in the condominium documents will not impair the rights of RHS to: (1) Foreclose or take title to a condominium unit pursuant to the remedies in the mortgage; (2) Accept a deed in lieu of foreclosure in the event of default by a mortgagor; and (3) Sell or lease a unit acquired by RHS. (c) If RHS obtains title to a condominium unit pursuant to the remedies in its mortgage or through foreclosure, RHS will not be liable for more than 6 months of the unit's unpaid regularly budgeted dues or charges accrued before acquisition of the title to the unit by RHS. The homeowners association's lien priority may include costs of collecting unpaid dues. (d) In case of condemnation or substantial loss to the units or common elements of the condominium project, unless at least two-thirds of the first mortgagees or unit owners of the individual condominium units have given their consent, the homeowners association may not: (1) By act or omission seek to abandon or terminate the condominium project; (2) Change the pro rata interest or obligations

official document · source cfr-2024 · id 7:§ 3550.71