CAI and CHLA Urge Presidential Emergency Housing Declaration Expanding FHA Condo Loan Flexibility
Make homeownership more accessible for millions of Americans by allowing FHA to insure condo loans already approved by Fannie Mae and Freddie Mac.
Falls Church, Va., Sept. 17, 2025 (GLOBE NEWSWIRE) -- Community Associations Institute, the leading international authority supporting condominium associations, homeowners associations, and housing cooperatives, is urging the Trump administration to expand Federal Housing Administration loan flexibility for condominiums in collaboration with the Community Home Lenders of America.
Specifically, the groups are calling on the administration to allow FHA to insure condominium loans in projects already been approved by Fannie Mae and Freddie Mac but have not been separately certified by FHA. The proposal comes amid reports the administration is considering invoking a national housing emergency declaration to improve housing affordability.
For millions of Americans, especially in high-cost markets, condominiums represent the most attainable path to homeownership. However, far fewer condo projects are FHA-certified than those approved by Fannie Mae or Freddie Mac, which can limit access to loans for prospective buyers. According to 2024 Zillow data, condominiums in the 25 largest U.S. metro areas are on average more than 54% more affordable than single-family homes.
"CAI strongly supports reciprocity between the U.S. Department of Housing and Urban Development’s Federal Housing Administration condominium certification process and the government-sponsored enterprises, Fannie Mae and Freddie Mac,” says Dawn M. Bauman, CAE, chief executive officer at Community Associations Institute. “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."
"CHLA applauds the Trump administration for reportedly looking at taking housing emergency actions to address homeownership and housing affordability challenges," says Scott Olson, executive director of the Community Home Lenders of America. "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 and CHLA are urging the administration to include this proposal in any forthcoming presidential emergency housing declaration. By aligning FHA standards with those already in use by Fannie Mae and Freddie Mac, the administration can help open the door to homeownership for millions of Americans and expand access to affordable housing.
Blaine Tobin Community Associations Institute 703-970-9235 btobin@caionline.org
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