HUD Approves Evidence of Presentment of Legal Documents for Condominiums in Puerto Rico
|April 4, 2007|
This final rule amends the Department's regulations to provide that the date of recordation for purposes of obtaining Federal Housing Administration (FHA) approval of a condominium development in the Commonwealth of Puerto Rico for mortgage insurance under the section 234(c) program is the date the condominium legal documents are presented to the Commonwealth Office of the Property Registry. This final rule enables parties to obtain mortgage insurance upon presentment of legal documents, whether the condominium regime is under construction, proposed for construction, or was established by conversion. Instituting a single standard for approval of mortgage insurance will result in a reduction in risk, time, and cost for developers and help to increase FHA activity and homeownership opportunities in Puerto Rico. This final rule follows publication of a May 23, 2006, proposed rule on which HUD did not receive any public comments. Accordingly, HUD is adopting the May 23, 2006, proposed rule without change.
DATES: Effective Date: May 4, 2007.