H.R. 3700, the “Housing Opportunity Through Modernization Act,” finally finished the legislation process. President Obama signed the housing legislation into law on Friday, which, according to the National Association of Realtors, “will dramatically improve long-fought restrictions on Federal Housing Administration financing for condominiums.”
In light of the news, NAR President Tom Salomone said, “Realtors have reason to celebrate today as legislation easing restrictions on Federal Housing Administration financing for condominiums is finally signed into law. This is a long-awaited victory for NAR and for homebuyers for whom condos are an important and affordable option.”
The U.S. Senate passed H.R. 3700 on July 15 after the bill passed in the House of Representatives by a unanimous vote back in February.
The new changes will make the FHA’s recertification process much easier and will lower the FHA’s current owner-occupancy requirement from 50% to 35%.
The bill also requires FHA to replace existing policy on transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency.
The FHA’s current restrictions on condominium financing present a significant hurdle for one of America’s most affordable options, according to testimony given on Capitol Hill in 2015 by then NAR President Chris Polychron.