source:
  type: regulation
  id: usda-hb-3555-12.11
  authority: USDA Technical Handbook HB-1-3555 §12.11 — Condominiums And Planned Unit Developments
  description: "USDA HB-1-3555 §12.11 (Condominiums And Planned Unit Developments). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-12.11-0
  canonical_id: usda-hb-3555-12.11-0
  section: USDA HB-1-3555 12.11 — Condominiums And Planned Unit Developments
  description: '12.11 Condominiums And Planned Unit Developments: NDOMINIUMS AND PLANNED UNIT DEVELOPMENTS A. General
    Condominium Project Requirements Condominium projects typically consist of multi-unit buildings governed by
    a Homeowner’s Association (HOA). Each condominium unit is a single family dwelling that is individually owned,
    and the c…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.11 — Condominiums And Planned Unit Developments
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: NDOMINIUMS AND PLANNED UNIT DEVELOPMENTS A. General Condominium Project Requirements Condominium
      projects typically consist of multi-unit buildings governed by a Homeowner’s Association (HOA). Each condominium
      unit is a single family dwelling that is individually owned, and the common areas such as hallways and recreational
      facilities are owned by all the unit owners. Condominium projects may consist of attached, semi-detached,
      detached, or manufactured housing units. Lenders may request a Conditional Commitment for Loan Note Guarantee
      for a
    drafter_attestation: Verbatim from HB-1-3555 §12.11 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.11-1
  canonical_id: usda-hb-3555-12.11-1
  section: USDA HB-1-3555 12.11 — Condominiums And Planned Unit Developments
  description: '12.11 Condominiums And Planned Unit Developments: 05-05-25) PN 640 Guidance documents lack the force
    and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite,
    use, or rely on any guidance that is not available through their guidance portal, except to establish historical
    facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.11 — Condominiums And Planned Unit Developments
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. condominium unit if the condominium project:
      x Can be approved in accordance with HUD/FHA, VA, Fannie Mae, or Freddie Mac, as applicable; or x Has been
      approved or accepted by HUD/FHA, VA, Fannie Mae, or Freddie Mac. A Condominium Rider must supplement the Mortgage
      or Deed of Trust. HOA dues for dwellings in a condominium project must be included in total debt-to-income.
      Aside from the lender certification to Rural Development, all condominium documentation should remain in the
      lender’s permanent loan file and should be available upon request. Full documentation will be requested if
      the lender fails to certify the condominium unit meets the requirements of HUD/FHA, VA, Fannie Mae, or Freddie
      Mac project approval or acceptance. When there is an indication that a condominium unit or project does not
      meet the requirements of HUD/FHA, VA, Fannie Mae, or Freddie Mac, the Agency will request additional documentation
      from the lender. If the condominium unit or project does not meet the stated requirements as certified or
      warranted by the lender, the Agency may refuse to issue a Conditional Commitment or Loan Note Guarantee. 1.
      Ineligible Condominiums Condominium projects with ineligible characteristics listed under HUD/FHA, VA, Fannie
      Mae, or Freddie Mac guidelines are not eligible for guarantee. Lenders are responsible for verifying eligibility
      at the time of loan underwriting. 1. Acceptability of a Non-Approved Condominium Project Lenders who meet
      the conditional authority and who have staff with knowledge and expertise in reviewing and approving condominium
      projects in accordance with HUD/FHA, VA, Fannie Mae, or Freddie Mac, as applicable, may determine the acceptability
      of the condominium project. Lenders may refer to HUD/FHA, VA, Fannie Mae, or Freddie Mac for additional guidance
      in performing their approval review of the condominium project. Lender representation and certification of
      project approval may be accepted as long as the lender meets the self-certification criteria set'
    drafter_attestation: Verbatim from HB-1-3555 §12.11 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.11-2
  canonical_id: usda-hb-3555-12.11-2
  section: USDA HB-1-3555 12.11 — Condominiums And Planned Unit Developments
  description: '12.11 Condominiums And Planned Unit Developments: 05-05-25) PN 640 Guidance documents lack the force
    and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite,
    use, or rely on any guidance that is not available through their guidance portal, except to establish historical
    facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.11 — Condominiums And Planned Unit Developments
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. forth by HUD/FHA, VA, Fannie Mae, or
      Freddie Mac and is done so consistently with standards and regulations set forth by each entity. By submitting
      the request for Conditional Commitment for Loan Note Guarantee, the lender represents the condominium project
      meets the requirements set forth by HUD/FHA, VA, Fannie Mae, or Freddie Mac. Lenders must retain evidence
      they have reviewed condominium documentation that supports the project’s approval or acceptance by HUD/FHA,
      VA, Fannie Mae, or Freddie Mac and that the documentation remains available in the lender’s permanent loan
      file for verification purposes. When requested, the lender must provide such documentation to Agency staff
      for verification of compliance with HUD/FHA, VA, Fannie Mae, or Freddie Mac regulations. 2. Underwriting a
      Condominium Unit in an Approved Condominium Project (by HUD/FHA, VA, Fannie Mae, or Freddie Mac) Units in
      a condominium project are eligible for a guarantee if the condominium project has been approved or accepted
      by HUD/FHA, VA, Fannie Mae, or Freddie Mac. For all loans secured by a condominium unit, in a condominium
      project, the lender must perform an underwriting review of the condominium project to ensure the unit is approved
      or accepted by HUD/FHA, VA, Fannie Mae, or Freddie Mac. Participating lenders may certify to Rural Development
      that they have reviewed the condominium documentation that supports project approval or acceptance, and that
      the condominium is in compliance with HUD/FHA, VA, Fannie Mae, or Freddie Mac guidelines. The lender may indicate
      compliance by stating the project classification on the Uniform Underwriting and Transmittal Summary (Fannie
      Mae Form 1008, Freddie Mac Form 1077). The lender may utilize Rural Development’s Attachment 12-B, to this
      Chapter, “Rural Development Condominium Certification.” Use of the Condominium Certification Form is optional.
      Lenders who receive an “Accept” underwriting recommendation through GUS, may be requested to present documentation
      confirming the condominium unit meets the eligibility criteria of this section. Lenders may refer to HUD/FHA,
      VA, Fannie Mae, or Freddie Mac for additional guidance in performing their underwriting review of the condominium
      project. In addition, the lender must ensure that the condominium meets all the applicable requirements for
      units in approved condominium projects at the time of underwriting. Lenders may use Form HUD-9991, FHA Condominium
      Loan Level/Single-Unit
    drafter_attestation: Verbatim from HB-1-3555 §12.11 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.11-3
  canonical_id: usda-hb-3555-12.11-3
  section: USDA HB-1-3555 12.11 — Condominiums And Planned Unit Developments
  description: '12.11 Condominiums And Planned Unit Developments: 05-05-25) PN 640 Guidance documents lack the force
    and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite,
    use, or rely on any guidance that is not available through their guidance portal, except to establish historical
    facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.11 — Condominiums And Planned Unit Developments
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. Approval Questionnaire, or similar, to
      document these requirements. a. Insurance The lender is responsible for ensuring the condominium project and
      the unit are adequately insured. (i) Walls-In (HO-6) Insurance: Applicants remain responsible for obtaining
      individual homeowners’ insurance to cover the interior of the unit and personal property inside the unit.
      The lender must verify the applicant has obtained a Walls-In (HO-6) policy if the condominium project’s master
      or blanket policy does not include interior unit coverage. (ii) Hazard Insurance: The HOA must obtain and
      maintain adequate hazard insurance for the entire condominium project. Lenders must verify that the HOA has
      a master or blanket hazard insurance policy for the entire condominium project that provides coverage and
      compensation for physical damage resulting from fire, wind, or natural occurrences. (iii)Flood Insurance:
      The lender must verify if the unit in the condominium project is located in a SFHA and ensure that the HOA
      obtains and maintains adequate flood insurance for buildings in a condominium project located within the SFHA.
      A Condominium Rider must supplement the Mortgage or Deed of Trust. HOA dues for dwellings in a condominium
      project must be included in total debt-to- income. Aside from the lender certification to Rural Development,
      all condominium documentation should remain in the lender’s permanent loan file and should be available upon
      request. Full documentation will be requested if the lender fails to certify the condominium unit meets the
      requirements of HUD/FHA, VA, Fannie Mae, or Freddie Mac project approval or acceptance. When there is an indication
      that a condominium unit or project does not meet the requirements of HUD/FHA, VA, Fannie Mae, or Freddie Mac,
      the Agency will request additional documentation from the lender. If the condominium unit or project does
      not meet the stated requirements as certified or warranted by the lender, the Agency may refuse to issue a
      Conditional Commitment or Loan Note Guarantee.'
    drafter_attestation: Verbatim from HB-1-3555 §12.11 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.11-4
  canonical_id: usda-hb-3555-12.11-4
  section: USDA HB-1-3555 12.11 — Condominiums And Planned Unit Developments
  description: '12.11 Condominiums And Planned Unit Developments: 05-05-25) PN 640 Guidance documents lack the force
    and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite,
    use, or rely on any guidance that is not available through their guidance portal, except to establish historical
    facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.11 — Condominiums And Planned Unit Developments
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. B. Planned Unit Developments [7 CFR 3555.207]
      A planned unit development (PUD) is a project or subdivision that includes common property that is owned and
      maintained by a homeowner’s association (HOA) for the benefit of use by the individual PUD unit owners. All
      homeowners in the PUD must be part of the HOA and pay lien supported assessments. A PUD can consist of condominiums,
      townhomes, or detached single family homes that are served by a HOA. HOA dues for dwellings in a PUD must
      be included in total debt-to-income calculations. Condominium projects located within a PUD may have a separate
      condominium HOA fee in addition to the PUD HOA fee. In this case, both HOA fess must be included in total
      debt-to-income calculations. The mortgage industry, including other Government housing programs like FHA,
      now recognize that PUD dwellings do not pose any more risk than single family dwellings not part of a PUD.
      Loans may be guaranteed for PUD single family dwellings the same as for single family dwellings not in a PUD.
      SECTION 6: COMBINATION CONSTRUCTION TO PERMANENT LOANS [7 CFR 3555.105] A combination construction to permanent
      loan, also known as a “single-close loan,” can be offered to eligible applicants by approved lenders with
      appropriate construction lending experience and adequate controls for interim construction cost disbursements.
      The criteria for this type of loan are described in the following sections below.'
    drafter_attestation: Verbatim from HB-1-3555 §12.11 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
