President Signs Housing Opportunity Through Modernization Act Which Changes FHA Requirements for Condominium Approval

The president signed HR 3700 into law.  Among other things, the act requires the FHA to streamline its procedures so that condominium recertifications are “substantially less burdensome” than initial certifications.  Other changes include requiring the Secretary to apply its transfer fee requirements in the same manner as it does for single family homes, allows for either direct endorsement lender approval and review or HUD review and approval for the percentage of commercial property in mixed use condominiums, and potentially changes the owner-occupancy requirements from 50% to 35%.

For most of the changes, if HUD issues regulations within 90 days, the regulations will control.  It remains to be seen if HUD will meet the deadline.

© Steve Sowell 2018