How the Shutdown Is Freezing FHA Condo Certifications

Day 36 of the longest government shutdown in history — and while most headlines focus on furloughed employees, delayed paychecks, and government assistance, there’s another group starting to feel the strain: condominium owners, buyers, and sellers relying on FHA financing.

The Numbers Behind the Decline

FHA Condo Certifications can’t move forward through the HRAP method (the direct HUD review), which is how the majority of condo projects are approved. The only other option for full project approval — DELRAP — allows select lenders with Direct Endorsement authority to approve condos in-house, but only a small percentage of lenders have this capability, and a smaller number use it.

To put it in perspective:

• From October 1, 2025 – November 5, 2025, only 19 condo associations (or new construction phases) were approved nationwide through DELRAP.
• In that same period of time in 2024, there were 312 approvals, and in 2023, 322 approvals.

That’s a 94% decline in the number of approved condo projects in just the last month. And keep in mind — each of these projects can range from just a couple of units to several hundred — so the number of people being affected is really starting to add up.

What Happens When HUD Reopens

We’re also anticipating delays when HUD opens back up. Condo approval packages are still being submitted every day — but they’re stacking up in queue. None of them will be reviewed until the shutdown ends, meaning HUD staff will already be a month behind once operations resume. Combined with reduced staffing levels at HUD, renewals and new approvals could face delays lasting several months.

How Condo Boards and Buyers Can Prepare

At FHA Review, we’re encouraging any clients whose approvals expire within the next 60–90 days to start the renewal process early. The earlier you prepare, the better positioned you’ll be once HUD reopens and the backlog hits.

Let me know if you have any questions – natalie@fhareview.com