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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. |
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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 |
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 |
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Timetable:
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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 7th Street SW, Washington, DC 20410 Phone:202 708-1672 |