Making Condos Safer and Affordable Act of 2026
Sponsored By: Representative Wasserman Schultz, Debbie [D-FL-25]
Introduced
Summary
Expands FHA mortgage insurance to finance condo repairs and owner assessments. This bill would let HUD insure loans for rehabilitation, alteration, repair, improvement, or replacement of condominium common facilities and allow financing of non-regular unit-owner assessments and reserves through FHA programs.
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- Condo unit owners: Could roll special assessments or reserves for future repairs into FHA-backed 203(k) rehabilitation loans. The Secretary must count the greater of estimated rehab cost or post-rehab value when sizing the loan and the principal would be capped at 115% of the value after rehabilitation.
- Condominium associations: Could get HUD-insured association mortgages to fund large common-area projects. Insured association loans could cover up to 90% of a project’s cost and the mortgage definition is expanded to include loans secured by future lien-based mandatory unit-owner payments.
- Loan programs and rules: Title I Property Improvement loans would raise the single-loan cap from $25,000 to $55,000 and explicitly allow financing of condo non-regular assessments for common-system repairs. The bill requires HUD to index dollar limits annually to the CPI-U and to adopt streamlined verification, disbursement, and certification rules for rehab work.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Higher Title I loan limits for condos
If enacted, the Title I maximum loan amount in the affected category would increase from $25,000 to $55,000. You would be able to use Title I loans to finance a non-regular condo assessment for future common-area repairs. HUD would also be required to raise certain Title I dollar limits each year using the Consumer Price Index for All Urban Consumers (CPI-U). These changes would apply despite other HUD handbook rules.
Use FHA 203(k) for condo assessments
If enacted, you would be able to use an FHA 203(k) loan to pay a non-regular condo assessment for common-area rehabilitation. You would also be able to use 203(k) funds to finance reserves for future project repairs. HUD would set the loan amount as the greater of the estimated rehab cost or HUD's post-rehab value estimate. However, the principal would not be allowed to exceed 115 percent of HUD's post-rehab value estimate. HUD would be required to streamline verification, payment, and completion rules for these loans.
HUD mortgage insurance for condo repairs
If enacted, the Secretary would be allowed to insure mortgages made to condominium associations to pay for rehabilitation, repair, or replacement of common systems and areas. The mortgage principal would not be allowed to exceed 90 percent of the project's rehabilitation cost. For this authority, 'mortgage' would include loans secured by future mandatory unit-owner payments under state law, recorded covenants, or condo rules. Insurance under this authority would be discretionary and subject to HUD's terms.
Sponsors & CoSponsors
Sponsor
Wasserman Schultz, Debbie [D-FL-25]
FL • D
Cosponsors
Rep. Salazar, Maria Elvira [R-FL-27]
FL • R
Sponsored 6/30/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov