Making Condos Safer and Affordable Act of 2026

Bill Number: H.R. 9569
Origin Chamber: House
Congress: 119th Congress, Session 2
Status: Introduced
Latest Action: 2026-06-30: Referred to the House Committee on Financial Services.
Last Updated: 2026-07-06T13:38:29Z

AI-Generated Summary

Summary of H.R. 9569: Making Condos Safer and Affordable Act of 2026

Purpose

This legislation amends the National Housing Act to expand Federal Housing Administration (FHA) mortgage insurance options. It aims to facilitate financing for repairs, improvements, and replacements of common areas in condominium projects, thereby supporting the safety and affordability of such housing.

Key Provisions

Section 2 amendments to Section 234: Authorizes the Secretary of Housing and Urban Development to insure mortgages for condominium governing bodies to fund rehabilitation, alteration, repair, improvement, or replacement of common systems, infrastructure, facilities, or areas. The principal obligation is limited to 90 percent of the project cost. The definition of "mortgage" is expanded to include loans secured by future mandatory unit owner payments under state law or condominium documents.
Section 3 amendments to Section 203(k): Allows FHA rehabilitation loans for condominium unit owners to cover non-regular special assessments charged by the condominium governing body for common area repairs. It also permits funding of reserves for future project-level improvements. Loan limits are adjusted to the greater of the rehabilitation cost or 115 percent of the estimated property value after rehabilitation. Regulations for verifying and managing such loans are streamlined.
Amendments to Title I Property Improvement Loans (Section 2): Extends eligibility to finance non-regular special assessments for condominium common area repairs. The maximum loan amount increases from $25,000 to $55,000, with annual adjustments based on the Consumer Price Index for All Urban Consumers.

Significant Changes to Existing Law

Introduces new FHA insurance authority specifically for condominium associations to borrow for common facility repairs, which was not previously available under Section 234.
Expands the scope of 203(k) rehabilitation loans and Title I loans to explicitly include payments for special assessments, overriding certain existing FHA guidelines.
Raises dollar limits on Title I loans and mandates annual inflation adjustments.
Adds streamlining requirements for loan administration in condominium contexts.

Potential Impacts

Government agencies: Increases administrative responsibilities for the Department of Housing and Urban Development and FHA in insuring new loan types and overseeing streamlined processes.
Citizens: May enable condominium owners and associations to access insured financing for necessary repairs, potentially reducing out-of-pocket costs and improving property conditions.
International relations: No direct impacts identified.

Main Stakeholders Affected

Condominium governing bodies and unit owners.
Lenders participating in FHA-insured programs.
The Department of Housing and Urban Development and FHA.

Notable Legal, Constitutional, or Political Implications

Expands federal involvement in condominium financing through existing FHA authorities without altering core constitutional frameworks.
Requires regulatory adjustments by the Secretary, which may involve updates to the FHA Single Family Policy Handbook.
Focuses on housing policy to address repair needs in multi-unit properties, with no apparent conflicts with existing statutes beyond the specified expansions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Wasserman Schultz, Debbie [D-FL-25]

Cosponsors (1)

Rep. Salazar, Maria Elvira [R-FL-27]

Recent Actions

2026-06-30: Referred to the House Committee on Financial Services.
2026-06-30: Introduced in House
2026-06-30: Introduced in House

Bill Versions

Making Condos Safer and Affordable Act of 2026 — issued 2026-06-30 — PDF (8 pages)