Association Legislative NAR News

H.R. 3700 Passes – Helps Solve Condo Concerns

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), passed the Senate under unanimous consent. This legislation previously passed the House by a vote of 427-0.  This legislation solves a number of concerns including issues 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 percent.  Rhode Island finished the Call for Action campaign with a 17.65 percent participation rate! This clearly made a difference on Capitol Hill.

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