REALTORS® can learn about the impacts of condominium rule changes by the U.S. Department of Housing and Urban Development (HUD) and prepare to help clients once those rules take effect by watching a new video from the National Association of REALTORS®.
NAR staff members Nobu Hata, Megan Booth and Sehar Siddiqi talk about the association wanting mortgages insured by the Federal Housing Administration to be available for condo buyers. They explain the easier re-certification process for condo buildings, the increased opportunity for some spot loans in unapproved buildings and how the rule changes should help property owners improve occupancy and first-time home buyers find the right homes.
The association’s history with condo issues date back 11 years, said Booth, director, federal housing, valuation, commercial real estate policy & programs for NAR. Although legislation passed in 2008 to help condo owners was stymied by the recession, NAR kept lobbying for change. New legislation passed in 2015, became law in 2017 and rules were released in July 2019. On Oct. 15, the rule changes will take effect, she said.
“This is actually a really great win,” says Siddiqi, NAR senior policy representative, federal housing and valuation. “In fact, there are actually a lot of wonderful things in this final rule from HUD that are going to make it a lot more flexible and less onerous for worthy borrowers to use FHA financing to get … one of the best entryways into homeownership.”
Among several advantages mentioned by Siddiqi is the estimate that 20,000 to 60,000 condo units will become available a year for consumers who want to use FHA-insured financing. She encouraged REALTORS® to learn about the issue so they can help local homeowner associations and condo associations take advantage of the new opportunities.