I just found something in the FDIC FIL-90-2005. Its regarding tract development (construction) but I maybe it would also apply to refinancing. Question # 12 -
What are the appraisal requirements when an institution finances construction of a condominium building(s)?
Answer: For a condominium building with five or more units, an institution must obtain an appraisal of the building that reflects appropriate deductions and discounts for holding costs, marketing costs, and entrepreneurial profit. An institution may not use the aggregate retail sales prices of the individual units as the market value to calculate the LTV ratio. For purposes of this document, condominium buildings are distinguished from other types of residential properties if construction of the entire building has to be completed before any one unit is occupied.
[u]If an institution finances the construction of a single condominium building with less than five units or a condominium project with multiple buildings (e.g., clustered condominiums and town homes) with less than five units in a building, the institution may be able to rely on appraisals of the individual units to satisfy the agencies' appraisal requirements and to determine the market value for calculating the LTV ratio. In this regard, the institution should be able to control starts on an individual building basis and demonstrate by a feasibility or market analysis, conducted independently of the borrower and loan production staff, that all units in each building can be constructed and sold within 12 months.
It looks like 5 or more units-bulk appraisal with deductions and discounts...less than five units-may be able to rely on appraisals of the individual units.
But cannot obtain an appraisal for one condo take that value and multiply by 16 condos.
Always learning something new...