Lender Relief for condominium projects comes from the House of Representatives. The House passed 427 to 0 a bill entitled “House Opportunity through Modernization”. Under the bill, the rules and regulations of the FHA are being relaxed. Approximately, ten years ago the FHA severly tightened its regulations related to financing condominium units. The tightening of the rules and regulations resulted in only about ten percent (10%) of the projects in the United States qualifying for financing underwritten by FHA. The lack of FHA financing has negatively impacted sales and increase the percentage of condominium unit rentals, both of which in turn negatively affect the value.
The Senate is expected to pass the bill and the President is expected to sign the bill. For more information, see this article from The Washington Post.
This is a bill Community Associations should follow. If passed, it is anticipated the implementation will take approximately one year.
L. Sue Loftin is the Founder and Shareholder of The Loftin Firm. For questions relating to this blog or any other California real estate, corporate governance, land use, or estate planning matter, contact Ms. Loftin at 760-814-9649.