117 HR 8304 IH: Rapid Financing for Critical Condo Repairs Act of 2022
U.S. House of Representatives
2022-07-07
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EN
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1.This Act may be cited as the Rapid Financing for Critical Condo Repairs Act of 2022
.2.Insurance of mortgages to finance repair and replacement of common facilities of condominium projectsSection 234 of the National Housing Act (12 U.S.C. 1715y) is amended—(1)in subsection (a), by inserting and preserving
after increasing
;(2)in the first sentence of subsection (b), by inserting before the period at the end the following: , and except that the term mortgage
, for the purposes of subsection (l), includes a loan financing the costs of a rehabilitation, alteration, repair, improvement, or replacement of any common system, infrastructure, facility, feature, portion, or area serving a condominium project and that is secured by future lien-based mandatory unit owner payments required pursuant to State statute, a recorded declaration of covenants, or lawful rule, by-law, or guideline adopted by the governing body of the condominium project, real property, or a combination thereof
;(3)by adding at the end the following new subsection:(l)Insurance of mortgages To finance repairs and replacements of common facilities(1)In addition to mortgages insured under the other provisions of this section, the Secretary may insure, in the discretion of the Secretary and under such terms and conditions as the Secretary may prescribe, a mortgage—(A)that finances, in the case of condominium projects, the costs of a rehabilitation, alteration, repair, improvement, or replacement of any common system, infrastructure, facility, feature, portion, or area serving the project; and(B)under which the mortgagor is the governing body of the condominium project.(2)To be eligible for insurance under this subsection, a mortgage may not involve a principal obligation in an amount exceeding 90 percent of the cost of the proposed rehabilitation, alteration, repair, improvement, or replacement project.; and(4)in subsection (h), by inserting or (l)
after subsection (d)
.