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  • Posts by Jonathan Kinney
    Shareholder

    Jonathan Kinney is a shareholder of Bean, Kinney & Korman practicing in the areas of land use and zoning, real estate, estate planning and wealth management.

    Jon represents regional and national developers, property owners and ...

November 4, 2016
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Effectively immediately, The Federal Housing Administration (FHA) has implemented new owner-occupancy rules regarding existing condominium developments.  The owner-occupancy requirement for most projects has been lowered from 50% to 35%.  The lower percentage only applies, however, if certain requirements are met: applications must be submitted under the HUD Review and Approval Process option, owners need to provide documentation of an account showing at least 20% of the budget is allocated for replacement reserves for capital expenditures and deferred maintenance, and HOA fees cannot be in arrears for more than 10% of the units. 

The current 30% owner-occupancy requirement for proposed projects, projects currently under construction, and existing projects less than one year old will remain in effect. 

For more information, you can view the FHA’s rule here.

A fairly new policy change from Dominion Power could mean delays in the process of receiving final site plan approval, which could delay the construction process. Virginia Dominion Power has notified local jurisdictions of a change in policy regarding where underground vaults must be placed for new developments. Vaults must now be placed on property owned by the development and include an easement granting access to the vault.

As a result, site plans with vaults on public property, such as under a sidewalk or street, may be flagged during the approval process. The reasoning behind the change is that Dominion Power wants to be granted an easement on the property from the developer to secure access to the vault, which they cannot do on public property because the developer does not own it.

Image courtesy of Dudley Carr