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OF OFFICE
OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
January
22, 2003 MORTGAGEE
LETTER 2003-02 TO: ALL APPROVED MORTGAGEES SUBJECT:
Elimination of Planned Unit Development (PUD) Approval
Requirements
This Mortgagee Letter eliminates the Federal Housing
Administration’s (FHA) policies
and procedures for approving Planned Unit Development (PUD) projects. Effective immediately, FHA will no longer require approval of
a PUD as a precondition for placing FHA mortgage insurance on a dwelling
located in the development. Further,
FHA will no longer maintain a list of approved PUDs.
This Mortgagee Letter expands upon actions taken in 1993, when
FHA published Mortgagee Letter 93-27, abolishing a variety of PUD
approval requirements described in Handbook 4135.1.
While portions of FHA’s guidelines were lifted, ML 93-27 did
not remove all
PUD approval requirements. Rather,
ML 93-27 stated that PUDs would still be approved “in
accordance with outstanding instructions relating to legal documentation
and homeowner association budgets.”
Based on FHA’s extensive experience with PUDs since 1993, the
Department has determined that a detailed examination of the legal and
budget documents associated with PUDs
is no longer necessary. Although
the PUD approval requirements will be eliminated, FHA
will continue to require the attachment of the PUD Rider (see Attachment
XI of Handbook 4165.1) to all mortgages on properties located in PUDs. If
you have any questions about this Mortgagee Letter, please contact your
local Homeownership Centers in Atlanta (888-696-4687), Philadelphia
(800-440-8647), Denver
(800-543-9378), or Santa Ana (888-827-5605). Sincerely, John
C. Weicher Assistant
Secretary for Housing- Federal
Housing Commissioner
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