HouseH.R. 9569119th Congress
Making Condos Safer and Affordable Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9569 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9569
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
June 30, 2026
Ms. Wasserman Schultz (for herself and Ms. Salazar) 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 2026''.
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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