In July 2016, Congress passed the Housing Opportunity Through Modernization Act (HOTMA) requiring greater access to FHA (Federal Housing Administration) insured condominium unit mortgages for qualified borrowers. Today, fewer condominium homeowners have FHA-insured mortgages than when HOTMA was enacted.
On September 28, 2016, the Department of Housing and Urban Development (HUD) published a proposed rule to implement those changes to better serve the condominium market. Unfortunately, nearly two years later, the final rule has yet to be issued. Since HOTMA, only 6% of U.S. condominium projects are FHA-approved and 93% of condominium homeowners have no access to FHA-insured mortgages.
Sen. Tim Scott (R-S.C.) and Sen. Robert Menendez (D-N.J.), have joined efforts to draft the attached letter urging Secretary Carson of HUD to promptly issue this final rule simplifying requirements for condominium buildings to qualify for FHA approval.
We now need you to urge your senator to contact Sen. Scott or Sen. Menendez to co-sign the letter to HUD on FHA Condominium Rules by contacting their office. Their support is critical to continue FHA’s work to remove barriers to homeownership and ensure condominiums remain an affordable option for American families.
