Here are some basic requirements HUD looks for when approving a condominium complex:
- The units must be at least 50% owner occupied. In other words, if there are 100 units in the complex, at least 50 of them need to be owned by the person who lives there. No more than 50 can be owned by a landlord and rented out.
- No more than 15 percent of the owners can be more than 60 days delinquent on homeowner dues
- There can be no pending litigation against the condo. This means no one is trying to sue the condo complex, and the complex is not trying to sue anyone.