On November 28, 2016, NAR submitted a comment letter to the Federal Housing Administration (FHA) regarding proposed changes to FHA Condominium certification requirements. Many of the proposed changes align with areas REALTORS® have expressed a need for more lenience and reflects NAR advocacy on these matters. The NAR letter specifically asks FHA to:
- Remove the strict requirement on owner-occupancy levels, with a minimum of implementing HR 3700 standard of allowable 35% owner-occupancy without additional requirements;
- Allow 100% FHA loan concentration in buildings;
- Allow up to 45% commercial space without documentation and implement HR 3700 requirement allowing lenders to approve waivers and consider local conditions;
- Bring back spot-loan approval;
- Increase certification periods and allow for updates to information for re-certification purposes; and
- Support for new transfer fee requirement allowing beneficial transfer fees connected to condominiums.
NAR expects FHA to release the final rule in spring 2017.