HR 3700 Passed Senate Last Night
The bill is called ‘Housing Opportunity Through Modernization Act of 2016’. According to NAR, condominiums are among the most affordable homeownership options for first-time homebuyers, as well as lower income borrowers, but hurdle to affordable mortgage credit for condos still exist. The bill address efforts to make FHA’s re-certification process “substantially less burdensome,” improving a process that is often costly and which condo developments must repeat every 24 months. Additionally, the bill lowers FHA’s current owner-occupancy requirement from 50 percent to 35 percent and requires FHA to replace existing policy on transfer fees with the less-restrictive model. Overall it looks like a victory for condo associations and conversions that had a hard time selling because of being considered difficult to finance.