On July 29, 2016, H.R. 3700, sponsored by Reps. Luetkemeyer (R-MO) and Cleaver (R-MO) and through companion legislation, Senators Menendez (D-NJ) and Scott (R-SC), was signed into law by President Obama. This legislation previously passed unanimously in both the U.S. House and Senate. This legislation:
Solves a number of concerns regarding FHA’s condo rules:
- Reduces the FHA condo owner occupancy ratio to 35%, unless FHA takes alternative action within 90 days.
- Directs FHA to streamline the condo re-certification process.
- Provides more flexibility for mixed use buildings.
- Mirrors the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
- Provides permanent authority for direct endorsement for approved lenders to approve Rural Housing Service (RHS) loans.
- Makes reforms to federally assisted housing programs to streamline the programs.
REALTORS® worked hard on this legislation, bringing it to Capitol Hill as part of the REALTOR® Legislative Meetings and Trade Expo, and with a Call for Action. Nearly 140,000 REALTORS® participated in the Call for Action with a response rate over 15%. This clearly made a difference on Capitol Hill.