On August 24, 2016 HUD extended their existing temporary guidance on condos, without the changes brought about in HR 3700. HUD continues to work on the regulatory guidance to implement the new law, but their existing guidance was set to expire. In notice 2016-13, they simply extend the existing guidance until they can publish the new rules. NAR continues to work with HUD to hasten the publication of the provisions included in the new law. Those will:
- Reduce the FHA condo owner occupancy ratio to 35%, unless FHA takes alternative action within 90 days.
- Direct FHA to streamline the condo re-certification process.
- Provide more flexibility for mixed use buildings.
- Mirror the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
Stay tuned for updates, as HUD releases the new guidance.