U.S. House unanimously passes Condo Bill

Condominiums are among the most affordable homeownership options for first-time homebuyers, as well as lower income borrowers.

The House of Representatives passed, “Housing Opportunities through Modernization Act” or H.R. 3700, with a unanimous vote of 427-0. This legislation includes three major provisions that the National Association of REALTORS® supports:

 The legislation solves a number of concerns regarding FHA’s condo rules:

-Reduces owner occupancy ratio from 50% to 35%.
-Directs FHA to streamline condo certification process.
-Provides more flexibility for mixed use buildings
-Mirrors FHFA rules regarding private transfer fees.

The legislation provides permanent authority for direct endorsement for approved lenders to approve Rural Housing Service loans.

The legislation makes reforms to federally assisted rental housing programs to streamline the program.

The bill now moves to the Senate.

These changes would be in addition to changes made by HUD in November that broaden owner-occupancy requirements and streamline the recertification process.