H.R. 9569: Making Condos Safer and Affordable Act of 2026

This bill would expand the Federal Housing Administration’s ability to insure certain loans related to condominium projects. In plain terms, it is designed to make it easier for condos to borrow money for major repairs and improvements, especially for shared parts of the building or property.

What it changes for condominium associations

The bill would allow FHA-backed insurance for loans taken out by a condo association or similar governing body to pay for work on common areas and systems. This could include things like:

• Structural repairs
• Roof, plumbing, electrical, or other shared infrastructure work
• Repairs or replacement of common facilities and features
• Other rehabilitation or improvement projects for the condominium complex

These loans could be secured by future mandatory payments from unit owners, if those payments are required under state law, the condo declaration, bylaws, or other governing rules.

Loan limits for condo association repair loans

The bill would let FHA insure these association loans only up to 90% of the cost of the project. It would also allow the Housing Secretary to set terms and conditions for these loans.

What it changes for individual condo owners

The bill would also expand existing FHA rehabilitation loan programs so that individual condo owners could use them to pay special assessments charged by their condo association for future repairs or improvements to shared parts of the building.

In other words, if a condo owner is charged a one-time or non-regular assessment to help pay for major building work, that assessment could be financed through certain FHA loan programs.

Higher loan limits and updated rules

For these individual improvement loans, the bill would:

• Raise one dollar limit from $25,000 to $55,000
• Allow the loan to cover non-regular condo assessments tied to building repairs and improvements
• Require the dollar limits to be adjusted every year for inflation using the Consumer Price Index

Administrative changes

The bill would direct the Housing Secretary to simplify or streamline rules for verifying repair plans, managing repair work, releasing loan funds, and confirming that work is completed for these condo-related loans.

Overall effect

Overall, the bill would make federal mortgage insurance more available for condo-related repair financing. It is meant to help condominium associations and unit owners pay for major maintenance, repairs, and improvements to shared property and infrastructure.

Relevant Companies

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