FHA Proposes New Standards for Financing of Mixed-Use Condo Development

The Federal Housing Administration is looking to update rules on mixed-use developments in an effort to evaluate projects based on what local markets will support. Currently, FHA loans are only available for projects that are less than 50% retail; under the new rules the ceiling could be anywhere from 20% to 60% depending on market conditions. The new rules do nothing to change the 35% ceiling for mixed-use rental properties, however, and urban planners are concerned that low- and mid-rise mixed use apartment buildings will continue to lose out. Read more.