Yesterday, progress was made towards helping condominium projects recertify their FHA approval. H.R. 3700 the “Housing Opportunity through Modernization Act” passed the House and was referred to the Senate. The bill addresses the problems in FHA’s condominium program by simplifying the recertification process, allowing the Department of Housing and Urban Development (HUD) to grant commercial space requirement exemptions and reducing the minimum owner occupancy requirement from 50 percent to 35 percent. If the bill becomes law it will not only help condominium projects maintain their FHA approval, but will also ease the burden on condominium projects and put homeownership in reach for more families.
Condominiums are often the lower-cost housing option that meets the needs of first-time and minority homebuyers. However many of these qualified, credit-worthy home-buyers looking to purchase a condominium through reduced FHA mortgage premiums are disappointed to find that most condominium projects do not have FHA approval and do not qualify for such a reduction.
“Today is the first step in making meaningful reforms to our nation’s housing programs. I am pleased that my colleagues, on both sides of the aisle, came together to support a comprehensive bill that modernizes an outdated system and begins to break a status quo that serves too few at the cost of too many,” said the bill’s sponsor, Rep. Blaine Luetkemeyer (R-MO), who serves as Chairman of the Housing and Insurance Subcommittee (Read our letter to Rep. Leuketmeyer).