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New HUD Restrictions Limit Condo Construction

Posted by: Tim Halbur

25 August 2009 - 2:00pm

HUD has established new rules limiting the percentage of units in a building that can get FHA loans. Developers cry foul, calling it a bias against affordable housing and density.

"[Developer] Diana Chevalier, owner of Project Approval Services, said she was so upset when she learned of HUD’s new restrictions that she hopped the first plane to Washington, D.C."

"'I took a $1,000 flight, and I met with Margaret Burns,' Chevalier said of the director of HUD's Office of Single Family Program Development. 'What the FHA is doing is trying to limit their exposure in existing condos and new condos and this is their way of monitoring their exposure.'"

Full Story: HUD Rules May Hurt Builders
Source: San Diego Business Journal, August 24, 2009
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The decision to abandon a property is a symptom of the loss of confidence. And while abandonment certainly affects confidence among surrounding homeowners, the most important question to answer is not "how do we deal with abandoned properties?" but "what is the most cost-effective way to restore market confidence, and how do abandoned properties fit into that picture?"
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