Section 1 Short title
This Act may be cited as the “Rapid Financing for Critical Condo Repairs Act of 2022”.
Rapid Financing for Critical Condo Repairs Act of 2022
A BILL
To authorize the Secretary of Housing and Urban Development to insure loans made to condominium associations to finance repair or replacement of common areas, systems, and features, and for other purposes.
Sec. 2 Insurance of mortgages 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—
in subsection (a), by inserting “and preserving” after “increasing”;
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”;
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.”
in subsection (h), by inserting “or (l)” after “subsection (d)”.