As such, there is looming good news for these investors. The House of Representatives passed, "Housing Opportunities through Modernization Act” with a unanimous vote of 427-0. This legislation sponsored by Reps. Luetkemeyer (R-MO) and Cleaver (D-MO) includes three major provisions:
The legislation solves a number of concerns regarding FHA’s condo rules:
- Reduces owner occupancy ratio to 35%.
- Directs FHA to streamline condo certification process.
- Provides more flexibility for mixed use buildings.
- Mirrors FHFA rules regarding private transfer fees
- The legislation provides permanent authority for direct endorsement for approved lenders to approve Rural Housing Service loans.
- The legislation makes reforms to federally assisted rental housing programs to streamline the program.