Senate Streamlines Condo Project Recertification Requirements
Good news for clients buying condos! The Senate just passed H.R. 3700 “Housing Opportunity Through Modernization Act” which will put homeownership in reach for more families.
While there is no official communication from FHA; real estate agents, clients, and lenders may start talking about it. Below is a summary of what this means to you and your clients.
Summary of H.R. 3700
Among its nearly 20 provisions, the biggest changes revolve around streamlining condominium project recertification requirements by:
- Decreasing owner-occupancy requirement from 50% to 35%
- Aligning recurring private transfer fees to be consistent with a less-restrictive model already in place at the Federal Housing Finance Agency (FHFA).
- Additionally, the act streamlines the process for exemptions to FHA’s rule requiring that condominium projects have no more than 25 percent of the space dedicated to commercial use. This effort is in line with the Department of Housing and Urban Development’s initiative to promote neighborhoods with a mix of residential housing, businesses and access to public transportation.