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DOCOHEIV! RESUME
05418 - [B0825760]
Condominium Homeownership Opportunities Could Be Increased.
CED-78-71; B-114860. Narch 21, 1978. 14 pp. + 4 appendices (5
pp.).
Report to the Congress; by Elmer B. Staats, Comptroller General.
Issue Area: Doaestic Housing and Community Development: Fediral
Credit Incentives to Stimulate Housing (21041.
Contact: Camsunity and Economic Development Div.
Budget Function: Commerce and Tranvportation: Mortgage Credit
and Thrift Insurance (401); Veterans Benefits and Service-:
Veterans Housing (704).
organizatior Concerned: Department t-f Housing and Urban
Development; Veterans Administration.
Congressional Relevance: House Committee on Banking, Currency
and Housing; Senate Committee on Banking, Housing and Urban
Affairs; Congress.
Authority: National Housing Act (12 U.S.C. 1715y). fiousing Act
2f 1964 (12 U.S.C. 1715). Veterans Housing Act of 1974 (3tl
U.S.C. 1810(a)). Housing *ad Community Development Act of
1974 (42 U.S.C. l4SOf).
The growth in condominium ownership and its advintages
have led to the *Lactment of legislation authorizing condoainiui
financing programs for the Department of Housing and Urban
Development (BUD), the Veterans Administration (VA), and the
Farmers Home Administration (FaHA). Findings/Conclusions:
Because of statutory limitationsw opportunities for financing
are still not readily available tc condominium buyers. HOD can
only insure mortgages on individual condominium units if it had
insired the mortgage on the entire project. This requirement
eliminates 97% of existing condominiums from HOD's mortgage
insurance program. The VA cannot guarantee condominium mortgages
if the unit was not originally built and sold as a condominium.
Before BUD insures or the VA guarantees a mortgage for a
condominium unit, the developer or unit owner must submit
separate legal documents to each agency for review.
Standardizing legal requirements and agreeing to accept each
other's review and approval would increase the number of
condominiums approved and eliminate duplication. HUD and VA
should do more to inform condominium homeowners of the
advantages of obtaining Federal project approval and how to
qualify for Federal condominium programs. Recommendations: The
Conqres should authorize: HID insurance of mortgages on
individual condominium homes without .equiring that the project
be built under a 1UD program:, aad VA guarantee of loans on
individual condominiums not originally built or sold ks such.
The Congress should require the Secretary of BUD and the
Adainistrator of Veterans' Affairs to: standardize legal
document requirements so that sellers can readily offer their
condominiums tnder more than one Federal program; and accept,](ViewImageLocal?handle=hein.gao/gaobaawxs0001&div=1&collection=&method=preview&ext=.png&size=3)