Update: H.R. 3700/ S. 3083 Signed into Law

Education & Training with Adhi Schools, LLC

As we predicted on July 20th, H.R. 3700/ S. 3083 (also known as the Housing Opportunity Through Modernization Act of 2016), the bipartisan housing legislation that passed through Congress without receiving a single “no” vote, was signed into law by President Obama on Friday, July 29th.

The new law will reform HUD’s Section 8 housing voucher program (and any other family rental assistance programs) by requiring public housing agencies (PHAs) to develop new systems to properly review the incomes of families receiving assistance, to cease assisting families with assets exceeding $100,000, and a cap on project-based vouchers (those vouchers tied to the unit, not the tenant).

The FHA mortgage insurance eligibility requirements have also been changed. The FHA has now been instructed to make recertification of eligible condominiums less burdensome and to lower the required percentage of units occupied by owners in a development from 50% to 35% in order to qualify.

Loan approval authority for the USDA Rural Housing Service’s single family housing guaranteed loan program will now be made available to preferred lenders, streamlining this program.

As noted earlier, we predicted that this legislation would pass due to its broad bipartisan support and common sense reforms to important government policies and programs. We supported the legislation, as did the National Association of REALTORS®, California Association of REALTORS®, California Association of Mortgage Professionals, and other professional organizations. The reforms to FHA condominium approval processes are particularly promising and have the opportunity to open up more affordable housing opportunities for Americans while incentivizing the development of more housing, something we desperately need.


The full text (with summary) of the law can be found hereOr view the previous post summarizing some of the key impacts. What are your thoughts? What impact will this have on the industry?

Posted by

Cody Carmen

Comments (9)

Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

Seems like someting positive for a change.

Aug 01, 2016 09:15 AM
Cody Carmen

Bob Betel appears so. Hopefully this will spur some more development. But only time will tell. 

Aug 01, 2016 09:16 AM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ

Cody - common sense prevailed. Isn't that great! Thanks for the update - very helpful info.

Aug 01, 2016 10:07 AM
Cody Carmen

Anna Banana Kruchten glad you found it to be helpful. And always nice when common sense works!

Aug 02, 2016 04:52 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

The FHA change will hopefully make home ownership a reality for lots of people.

Aug 01, 2016 10:53 AM
Cody Carmen

Wayne and Jean Marie Zuhl agreed! There is no reason to not make condo homeownership more realistic for more people. So many of the major population centers in the U.S. are growing more congested. Condos can definitely provide a lot of housing for the amount of ground space they occupy. 

Aug 02, 2016 04:53 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


Thanks for information, It seems like we are moving in a positive direction, but is it a REDUX of the past that led us on the slippery slope of short sales, etc.?  I just saw that 1st Republic Bank is offering no money down loans on $2million and have opened offices in FB and Twitter buildings...Yikes.  A

Aug 01, 2016 11:00 AM
Cody Carmen

Ron and Alexandra Seigel this legislation at least doesn't really incentivize unsafe lending as much as it gets the government out of the way of the market a bit. 

And I am less concerned by those types of loans you mentioned than I was last time around because there has been far less subprime lending simultaneously occurring. Basically, some risk is more acceptable when there is not endemic risk. 

Aug 02, 2016 04:55 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Cody, I supported it as well via CAR and NAR.  Change is needed.  Now I'd like to see better oversight of HOA management companies ... 

Aug 02, 2016 04:43 AM
Cody Carmen

Kathleen Daniels would you mind briefly expounding upon the HOA management comment? Or writing a blog post? I'm not very familiar with this concern and would love to know more!

Aug 02, 2016 04:56 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

This was a good bill that passed and took way too long to get it through the channels.

Aug 02, 2016 11:52 AM
Cody Carmen

Debbie Reynolds this took an absurd amount of time for a very bipartisan bill that was not even debated. 

Aug 03, 2016 01:32 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Cody, I'm happy to hear about the FHA changes.  This is more than I learned in my recent Legislative Update required CE course. 

Aug 02, 2016 12:13 PM
Cody Carmen

Patricia Kennedy I'm happy that I can provide some useful info! I agree, definitely happy about the changes. The FHA one seems like common sense to me, if a government process that affects a very large number of taxpayers can be described as "burdensome", it should be addressed. I don't know a ton about the USDA lending, but it seems to be a more efficient process now as well, which sounds great to me. I'll have to look into it more.  

Aug 03, 2016 01:34 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for this update. Have a most productive August.

Aug 02, 2016 10:42 PM
Cody Carmen

Roy Kelley thank you, I thought this legislation was important enough to warrant update! Same to you, I'm sure you will be very productive. 

Aug 03, 2016 01:35 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Thanks for sharing that good news with us Cody Carmen, I appreciate the update.

Aug 03, 2016 09:00 AM