| CHLA, CAI Ask Administration to Add FHA Condo Loan Flexibility to Presidential Emergency Housing Declaration SUGGESTION: Allow FHA to Finance Condominiums in Projects Approved by Fannie Mae and Freddie Mac | |||
| Contact: Scott Olson | For Immediate Release | ||
| 571-527-2601 | September 17, 2025 | ||
| Washington, D.C. — The Community Home Lenders of America (CHLA) and the Community Associations Institute (CAI) today jointly called on the Trump Administration to allow the Federal Housing Administration (FHA) to insure loans on condominiums in projects that have been approved by Fannie Mae or Freddie Mac, but have not yet gained approval by FHA. The request comes as the Trump Administration is reported to be considering taking actions as part of a National Housing Emergency to address housing affordability challenges. CHLA is the only national association that exclusively represents IMBs, which originate 84% of all mortgages. Community Associations Institute is the leading international standards-setting, education, and advocacy organization representing the 7 million Americans living in condominiums, housing cooperatives, and homeowners associations. “CHLA applauds the Trump Administration for reportedly looking at taking housing emergency actions to address homeownership and housing affordability challenges,” said Scott Olson of CHLA. “Since condominiums are typically more affordable than freestanding homes, a simple but effective action to add to an emergency housing list would be to allow FHA to insure condos in projects approved by Fannie and Freddie—but not by FHA.” “CAI strongly supports reciprocity between the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration condominium certification process and the government-sponsored enterprises, Fannie Mae and Freddie Mac. Streamlining this approval process is a common-sense step toward greater government efficiency, reduced bureaucracy, and expanded access to affordable housing for working families. CAI applauds the Trump Administration for considering these critical efficiencies that would support millions of current and future condominium homeowners.” Such an action would help resolve a persistent disparity in which, for a variety of reasons, substantially more condominium projects have been approved for loans by Fannie Mae and Freddie Mac than by FHA.Condominiums remain one of the most accessible paths to homeownership. According to 2024 Zillow data, in the 25 largest U.S. metropolitan areas, condominiums are on average more than 54% more affordable than single-family homes. | |||