FHA recently made guideline changes to limits on retail space in condominium projects.
FHA requires that no more than 25 percent of the property's square footage in a project or a unit can be used for commercial purposes in order for a project to become FHA Certified.
Exception requests will now be considered on a case by case basis for projects with >25% but <36% non-residential/commercial space. FHA reserves the right to reject any exception request received.