The ""Federal Housing Administration (FHA)"":www.fha.gov/ is receiving industry support for its revisions to mortgage-related guidelines on condominium properties. Having been adamant about the need for changes to the previous standards, the ""Community Associations Institute (CAI)"":www.caionline.org/ recently spoke out in support of the FHA's decisions, which the group says will create ""greater stability"" in the condo market.[IMAGE]
""This is excellent news for sellers, buyers, condominium communities and the housing market across the country,"" said CAI's CEO Thomas Skiba, CAE.[COLUMN_BREAK]
""FHA has responded to the critical issues we've raised. By doing so, more Americans can obtain FHA-insured mortgages to purchase condominiums,"" he added.
Skiba went on to address the most significant revisions established by the FHA, stating that they ""appear responsive to several key CAI issues."" Referencing specific elements of the FHA's changes, Skiba pointed out the alterations to community delinquency rates, insurance coverage, commercial space limitations, and condominium certification statements.
""We hoped this would happen a lot sooner, but it's an important step in the right direction,"" noted Skiba. ""CAI will continue to press for reasonable FHA condominium policies. This will spark home sales and help tens of thousands of condominium communities begin to recover from the housing slump, and that can only help the national economy.""
The FHA stated that the recent changes in condo standards are ""temporary adjustments"" that respond to market conditions, but the CAI will continue to ""urge the agency to establish a regulatory foundation for its condominium program to provide long-term certainty of process, flexibility, and support for the future of condominium housing."" In conclusion, Skiba said that CAI will support efforts to provide ""additional statutory authority required to accomplish these goals.""