I am on my associations board and we are currently voting weather or not our building should have FHA certification.
What are the pros/cons of certifying?
If we certify will that allow Section 8 housing to go into our building?
With the new requirements by HUD, all association certifications will need to be redone every two years. What this means is that if your Association is not currently FHA certified, purchasers of units in you building WILL NOT be able to finance using FHA. Since FHA financing already accounts 70 to 90% of financing of sales of condos, this means those owners of units where associations are not FHA approved will eventually have virtually no ability to sell their homes to buyers who need a mortgage.
There are three ways to go about getting certification: (1) do it yourself; (2) wait for a lender to seek certification for a buyer of a unit, or (3) be proactive and hire an attorney who handles these kinds of matters to get certification for your building.
Certifying is an issue regarding lending. Section 8 is an issue regarding rental.
This website should help you determine what the requirements for condominium associations are to be FHA certified: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/96-41ml.txt
This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.
Real Estate Attorney
In today's lending environment FHA is a major source of financing for resales. Thus, it is very advantageous to qualify your condominium for FHA financing. FHA approval has NO effect on Section 8 rentals in your condominium.