REsource

NAR-BACKED CONDO LEGISLATION
PASSES U.S. SENATE, OFFERS RELIEF
FOR HOMEBUYERS
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The U.S. Senate recently passed H.R.
3700, the “Housing Opportunity Through
Modernization Act,” by unanimous
consent. This legislation includes reforms
to current Federal Housing Administration
restrictions on condominium financing,
among other provisions, and is long
supported by the National Association of
REALTORS® (“NAR”).
Changes include efforts to make FHA’s
recertification process “substantially less
burdensome,” while lowering FHA’s current
owner-occupancy requirement from 50% to
35%. The bill also requires FHA to replace
existing policy on transfer fees with the
less-restrictive model already in place at the
Federal Housing Finance Agency.
NAR testified last year in support of
the bill, which passed in the House of
Representatives 427-0 in February.
Tom Salomone, President of NAR and
broker-owner of Real Estate II Inc. in Coral
Springs, FL, praised the legislation as a
significant step towards eliminating barriers
to safe, affordable mortgage credit for
condos.
Following is a statement from Mr.
Salomone:
“Condominiums often represent
an affordable option that’s just right
for first-time and low-to-moderate
income homebuyers. Unfortunately,
overly-burdensome restrictions on
condo financing have for too long
put that option out of reach for many
creditworthy borrowers.
“This legislation meets those restrictions
head on, putting the dream of
homeownership back in reach for more
Americans.
“Tight inventory and rising home prices
are a reality of today’s market, and
mortgage credit is hard to come by. We
should take every opportunity to clear
the path for well-qualified borrowers to
purchase a home when they’re ready,
and this legislation does just that.
“Sens. Tim Scott (R-S.C.) and Robert
Menendez (D-N.J.) have done
tremendous work to see H.R. 3700 move
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28 Minnesota REALTORS® — Supporting YOUR Success