Press Releases

Washington, DC – Today, U.S. Representatives Debbie Wasserman Schultz (FL-25) and Maria Salazar (FL-27) announced the reintroduction of the bipartisan Making Condos Safer and Affordable Act to provide comprehensive condo relief that expands and ensures access to public and private loans for structural and safety repairs, providing bipartisan preventive assistance for millions of residents grappling with the building integrity realities exposed in the Surfside condominium collapse that took 98 lives.

The Making Condos Safer and Affordable Act makes it easier for condo owners to afford special assessments assigned by their HOAs or Condo Associations by expanding access to two loan programs guaranteed by the U.S. Department of Housing and Urban Development. The loans are geared to help cover the cost of special assessments for structural and safety related repairs, keeping Florida families safe, healthy, and in their homes.

“Five years ago, an unimaginable but entirely preventable tragedy rocked our South Florida community with the collapse of Surfside's Champlain Towers, claiming 98 innocent lives. While the cause was finally identified after years of investigations, action is still needed to stop this from happening again,” said Wasserman Schultz. “My bipartisan Making Condos Safer and Affordable Act ensures condominium associations can afford to make pressing repairs and keep residents safe.”

“The Surfside tragedy changed our community forever and reminded us that protecting families must always come first. As we honor those we lost, we must take action to help prevent another disaster,” said Salazar. “This bipartisan bill gives condominium associations and homeowners the tools they need to finance critical safety repairs, protect residents, and preserve safe, affordable housing across South Florida.”

Key provisions in the legislation:

• Amends the 203(k) program to allow loans to be used on special assessments for structural repairs.
• Expands the Title I Property Improvement Loans program to insure private lenders against losses when lending to individual condo owners or condo associations for special assessments. Additionally, the legislation increases the maximum insured loan amount to $55,000, to be adjusted with inflation.
• Streamlines the process of applying for these loans so that individual homeowners and condo associations can more easily apply for, and obtain, assistance.
• Amends Section 234 of the National Housing Act to authorize Federal Housing Administration (FHA) insurance for condominium association building rehabilitation loans.
• Condominium association loans are collateralized with pledges of future association assessment income. As FHA’s mortgage insurance programs are collateralized by real property, the legislation authorizes the agency to insure condominium association loans collateralized by assessment income or real property or a combination of the two.
• Under the legislation, FHA-insured condominium association loans may be used for the rehabilitation, alteration, repair, improvement, or replacement of a condominium project’s common systems, infrastructure, and facilities.
• To protect FHA and the U.S. government against financial loss, the legislation allows FHA insurance for only 90% of the cost of building rehabilitation work. This restriction operates in other FHA multifamily housing rehabilitation loan insurance programs.

This legislation is endorsed by the Community Associations Institute. 

Read the full bill here.

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