Highlights of the new draft rules are as follows:

• FHA Concentration. FHA will not insure any mortgages in an approved project if 50% or more of the units are FHA-insured. 
• Pre-Sale Requirements. At least 30% of the total units must be sold prior to endorsement of a mortgage on any unit. 
  
• Investor Ownership. HUD did not change the 10% investor ownership limitation that applies to all rented and leased units that a developer/builder owns, including those units acquired during a project acquisition.
  
• Home Owner Association Dues. HUD retained the requirement that no more than 15% of the total units can be in arrears (more than 30 days past due) of their condominium association fee payments. However, the new guidance provides for requests for an exception that may be considered on a case-by-case basis by the jurisdictional Homeownership Center. The guide outlines exception criteria for a project with up to 20% of the association's dues in arrears.

Many industry groups are still in the process of reviewing the proposed rules, discussing the new provisions with members and conferring with its coalition partners as they continue conversations with FHA.