The U.S. Senate approved legislation by unanimous consent that is designed to make FHA’s condo recertification process substantially less burdensome.
H.R. 3700, the “Housing Opportunity Through Modernization Act,” passed the House of Representatives by a 420-0 vote in February.
The legislation now goes to President Obama’s desk for his signature. Under the Act, FHA must:
- establish and implement a recertification process that is substantially less burdensome than initial certification
- cease and desist from rejecting condominiums that use transfer fees to fund association operations
- lower the owner occupancy limitation from 50 percent to 35 percent
- provide additional flexibility for condominium projects with commercial space
The Department of Housing and Urban Development is drafting a proposed rule that will make further changes to its condominium approval guidelines.