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## II. Origination Through Post-Closing/Endorsement

### C. Condominium Project Approval

#### 2. Project Eligibility

For the locality of the Condominium Project or specific to the Condominium Project, the total number of residential Units in the Condominium Project must be considered.

The following documentation must be reviewed and analyzed by the Mortgagee under DELRAP to support its decision or submitted for HRAP:

- An opinion from a certified residential appraiser that addresses market acceptance of the Condominium Project as residential in character;
- A current market study performed by an independent third party that addresses factors relating to the economy for the locality of the Condominium Project or specific to the Condominium Project; and
- The total number of residential Units in the Condominium Project.

#### (D) Required Documentation

The following documentation must be submitted for Commercial/Nonresidential Space:

- Form HUD-9992;
- Budget and financials;
- Recorded condominium site plans;
- CC&Rs; or
- If applicable, exception documentation.

### X. Live/Work Units

#### (A) Definitions

- A **Live/Work Condominium Project** refers to a Condominium Project that allows space within the individual Unit to be used jointly for nonresidential and residential purposes.
- A **Live/Work Unit** refers to a Unit in a Live/Work Condominium Project.

#### (B) Standard

- The Condominium Project’s governing documents must allow Live/Work arrangements.
- All individual Live/Work Units must not contain more than 49 percent Commercial/Nonresidential Space.

#### (C) Required Documentation

The following documentation must be submitted:

- Form HUD-9992; and
- Recorded CC&Rs.

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**Handbook 4000.1 801**  
Last Revised: 01/10/2025
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