[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4465 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4465

  To amend the National Housing Act to authorize insurance of certain 
mortgages to finance repairs and improvements to condominium projects, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 3, 2023

   Ms. Wasserman Schultz (for herself and Mr. Posey) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  To amend the National Housing Act to authorize insurance of certain 
mortgages to finance repairs and improvements to condominium projects, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Making Condos Safer and Affordable 
Act of 2023''.

SEC. 2. INSURANCE OF MORTGAGES FOR CONDOMINIUM ASSOCIATIONS TO FINANCE 
              REPAIR AND REPLACEMENT OF COMMON FACILITIES OF 
              CONDOMINIUM PROJECTS.

    Section 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 general.--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) Loan limit.--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)''.

SEC. 3. INSURANCE OF MORTGAGES FOR OWNERS OF CONDOMINIUM UNITS TO 
              FINANCE SPECIAL ASSESSMENTS.

    (a) Section 203(k) Rehabilitation Loans.--Section 203(k) of the 
National Housing Act (12 U.S.C. 1709(k)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in clause (ii), by striking ``or'' at 
                        the end;
                            (ii) in clause (iii), by striking ``and'' 
                        at the end and inserting ``or''; and
                            (iii) by adding at the end the following 
                        new clause:
                    ``(iv) in the case of a dwelling unit in a 
                condominium and notwithstanding any other law, 
                regulation, or guideline of the Secretary, including 
                subpart C of part II of the FHA Single Family Policy 
                Handbook 4000.1 of the Department of Housing and Urban 
                Development, the payment of a non-regular assessment 
                charged by the governing body of the condominium 
                project to the unit owner to cover costs of a future 
                rehabilitation, alteration, repair, improvement, or 
                replacement of any common system, infrastructure, 
                facility, feature, portion, or area serving the 
                project; and''; and
                    (B) in subparagraph (B), by inserting ``or the 
                funding of reserves for future project-level 
                improvements or repairs,'' after ``in connection with a 
                structure,'';
            (2) in paragraph (3)(A)--
                    (A) by inserting ``the greater of (i)'' before 
                ``the sum of the estimated cost of rehabilitation''; 
                and
                    (B) by inserting before the semicolon at the end 
                the following: ``, or (ii) the Secretary's estimate of 
                the value of the property after rehabilitation; except 
                that in no case shall the principal obligation exceed 
                115 percent of the Secretary's estimate of the value of 
                the property after rehabilitation'';
            (3) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7); and
            (4) by inserting after paragraph (4) the following new 
        paragraph:
    ``(5) The Secretary shall streamline regulations and guidelines 
applicable to verification of rehabilitation and repair plans, 
management of rehabilitation work, disbursement of loan proceeds, and 
certification of work completion for any rehabilitation loan insured 
under this subsection for purposes of payment of a non-regular 
assessment described in paragraph (2)(A)(iv) or payment of reserves for 
future project-level improvements or repairs described in paragraph 
(2)(B) to account for management of such rehabilitation work or 
reserves by the governing body of the condominium project.''.
    (b) Title I Property Improvement Loans.--Section 2 of the National 
Housing Act (12 U.S.C. 1703) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by inserting ``(iii)'' before ``financing the 
                preservation of historic structures''; and
                    (B) by inserting before the period at the end the 
                following: ``; and for the purpose of (iv) financing, 
                in the case of a dwelling unit in a condominium and 
                notwithstanding any other law, regulation, or guideline 
                of the Secretary, including subpart C of part II of the 
                FHA Single Family Policy Handbook 4000.1 of the 
                Department of Housing and Urban Development, the 
                payment of a non-regular assessment charged by the 
                governing body of the condominium project to the unit 
                owner to cover costs of a future rehabilitation, 
                alteration, repair, improvement, or replacement of any 
                common system, infrastructure, facility, feature, 
                portion, or area serving the project''; and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A)(i)--
                            (i) by striking ``$25,000'' and inserting 
                        ``$55,000''; and
                            (ii) by inserting before the semicolon the 
                        following: ``or a non-regular assessment 
                        charged by the governing body of the 
                        condominium project to the unit owner to cover 
                        costs of rehabilitation, alteration, repair, 
                        improvement, or replacement of any common 
                        system, infrastructure, facility, feature, 
                        portion, or area serving the project''; and
                    (B) in the matter after and below subparagraph (G), 
                by adding at the end the following: ``The Secretary 
                shall, by regulation, annually increase the dollar 
                amount limitations in subparagraphs (A)(i), (B), and 
                (F) (as such limitations may have been previously 
                adjusted under this sentence) in accordance with the 
                Consumer Price Index for All Urban Consumers (CPI-
                U).''.
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