View Rule

View EO 12866 Meetings Printer-Friendly Version     Download RIN Data in XML

HUD/OH RIN: 2502-AJ30 Publication ID: Fall 2016 
Title: Project Approval for Single Family Condominium Ownership Mortgages (FR-5715) 
Abstract:

Through this rule, HUD will amend its policies and procedures for projects to be approved as condominiums in which individual units would be eligible for mortgage insurance. Eligible for insurance would be units that are attached, detached, semi-detached or manufactured as well as undivided interest in the common areas and facilities which serve the projects. Insurance of condominiums in approved projects was first authorized by the Housing and Economic Recovery Act (HERA) of 2008. HERA moved the insurance of a single unit condominium unit in a project without a blanket mortgage from Section 234 of the National Housing Act.  There are no existing regulations under section 203.  While HERA permitted the program to be operated via guidance pending the issuance of regulations, more recently, the Housing Opportunity Through Modernization Act of 2016, Pub. L. 114-201 (HOTMA) contains specific provisions regarding condominiums under section 203 and requires regulations to implement those provisions to be issued by October 27, 2016.  Relevant to this rule, HOTMA requires:  greater flexibility in project recertification; requests for exceptions to the commercial space percentage requirement to be made either through the HUD review process or through the lender review and approval process; and for HUD to issue guidance, by rule, notice, or mortgagee letter, regarding the percentage of units that must be owner-occupied, including as a secondary residence. The rule also includes a savings provision preserving section 234 insurance where the project has a blanket mortgage.

 
Agency: Department of Housing and Urban Development(HUD)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: uncollected 
CFR Citation: 24 CFR 203   
Legal Authority: 12 U.S.C. 1707    12 U.S.C. 1709    12 U.S.C. 1710    12 U.S.C. 1715b    12 U.S.C. 1715y    12 U.S.C. 1715z-16    12 U.S.C. 1715u    42 U.S.C. 3535(d)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  09/28/2016  81 FR 66565   
NPRM Comment Period End  11/28/2016 
Final Action  05/00/2017 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Elissa Saunders
Director, Office of Single Family Program Development
Department of Housing and Urban Development
Office of Housing
451 Seventh Street SW,
Washington, DC 20410
Phone:202 708-2121