Sonterra Residential Condominium homes are traditional, single family detached homes. ONLY the lot are condo.
As of 10/15/2019, certain detached condos are exempt from the FHA condo project approval requirements. The project is exempt from project approval under the site condominium rule. Under the applicable rule (FHA Handbook 4000.1 II.A.8(11)(iv)(b)) “Site Condominiums” must have insurance and maintenance costs that are the sole responsibility of the Unit owner, excluding landscaping. In the Condominium Declaration for Sonterra I, Article 9, Section 1, “the Association maintains the Common Elements, and the Owner maintains the Owner’s Unit.” Here, a “Unit” is described in the plats and plans as the area that includes the dwelling and the yard. Also, under Section 15.2.2 of the Declaration, Units are not insured by the Association. Accordingly, the FHA will insure mortgages on the Units because they meet the definitions and standards for a Site Condominium (FHA Handbook 4000.1 II.A.8(p)(iv)).
“Sonterra West condominiums are exempt from the current FHA condo project approval requirements. As of October 15, 2019, the FHA has exempted from project approval, detached condominiums that satisfy the Site Condominium exception. Your lender should be familiar with the waiver process. Please provide a copy of the Declaration to your lender and note that Article 9, Article 15, and the Plats and Plans attached to the Declaration establish that unit owners are responsible for maintaining and insuring their units. This information should be sufficient for your lender to submit information to establish the exemption.”