Making Condos Safer and Affordable Act of 2026

This Act may be cited as the “Making Condos Safer and Affordable Act of 2026”.

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)”.

(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).”.