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b. Phasing (10/15/2019)
i. Definition
Phasing refers to Condominium Projects that are legally declared in separate stages by amending and recording the governing documents.
Legal Phases refer to specific phases of a Condominium Project that allow additions to the Condominium Project and are defined by state authority.
ii. Standard
Condominium Projects may be approved in stages as Legal Phases are completed; however, all completed Legal Phases must be evaluated.
Each Legal Phase must be complete as demonstrated by the Certificate of Occupancy
(CO) or its equivalent prior to submission of a Legal Phase.
Legal Phases may be submitted for New Construction and Conversion (both Gut and Non-Gut Rehabilitation) Condominium Projects.
The submitted Legal Phases must be independently sustainable without future planned Legal Phases, as demonstrated by the budget and financial documentation, such that the submitted Legal Phases of the Condominium Project will not be jeopardized by the failure to complete additional Legal Phases.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT C. Condominium Project Approval
2. Project Eligibility
(A) Vertical Buildings
For vertical buildings, legal Phasing is acceptable if:
• all Units in the phase are built out; and
• at least a temporary CO or its equivalent has been obtained for the Units.
(B) Detached and Semi-detached Buildings
For a detached or semi-detached development, Phasing is acceptable if:
• all Units in the phase are built out; and
• at least a temporary CO or its equivalent has been obtained for the Units.
(C) Required Documentation
Form HUD-9992, FHA Condominium Project Approval Questionnaire, must be submitted along with:
• the CO or its equivalent for each Unit in the Legal Phase; or
• a temporary CO or its equivalent.