Federal Condo Financing Bill Passes Senate; Now Heading to President’s Desk

IMG_0072H.R. 3700, sponsored by Reps. Luetkemeyer (R-MO) and Cleaver (R-MO) and through companion legislation, Senators Menendez (D-NJ) and Scott (R-SC), passed the Senate under unanimous consent last week, and is on the way to the President for his signature. This legislation previously passed the House by a vote of 427-0.

 

 

Also known as the Housing Opportunity Through Modernization Act of 2016, HR 3700 does the following:

  • Solves a number of concerns regarding FHA’s condo rules:
    • Reduces the FHA condo owner occupancy ratio to 35%, unless FHA takes alternative action  within 90 days.
    • Directs FHA to streamline the condo re-certification process.
    • Provides more flexibility for mixed use buildings.
    • Mirrors the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
  • Provides permanent authority for direct endorsement for approved lenders to approve Rural Housing Service (RHS) loans.
  • Makes reforms to federally assisted housing programs to streamline the programs.

REALTORS® worked hard on this legislation, bringing it to Capitol Hill as part of the REALTOR® Legislative Meetings and Trade Expo, and with a Call for Action.  Nearly 140,000 REALTORS® participated in the Call for Action with a response rate over 15%. This clearly made a difference on Capitol Hill. The President is expected to sign the legislation shortly.

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