By Mark Petrie, Marketing Coordinator at SwedelsonGottlieb
H.R. 3700 has passed the House of Representatives and now moves on to the Senate, to the cheer of affordable housing advocates and Community Associations Institute, which issued this letter of support to the bill’s sponsors. This is a positive development for condominium associations, as part of the bill directs the Secretary of the Department of Housing and Urban Development to implement and consider reasonable changes to the certification and recertification process for condominium FHA approval.
Although the details of exactly how the FHA approval requirements will be revised are largely to be determined by the Secretary, if the bill becomes law in its current form, it would likely be much easier to obtain and retain FHA approval. The bill directs the Secretary to:
– Consider reducing owner occupancy requirement from the current 50% to 35% (up to 65% could be leased)
– Streamline project recertification requirements to be substantially less burdensome than original certifications – Consider lengthening the time between certifications for approved properties – Allow for additional exceptions with respect to commercial space – Reduce FHA mortgage insurance premiums
Follow this link to read the full text of Title III of H.R. 3700.