Housing groups lobby for delays in condo lending and FHA rule updates

Community association advocates are lobbying Congress to secure a one-year delay in upcoming condominium lending requirement changes from Fannie Mae and Freddie Mac. The Community Associations Institute (CAI) is seeking this delay during its 2026 Congressional Advocacy Summit, arguing that the new standards—which include higher reserve-funding expectations and the elimination of streamlined limited reviews—could increase costs and reduce lender participation.

Simultaneously, the Federal Housing Administration (FHA) is accepting public comments until November 6 regarding proposed updates to its Minimum Property Requirements (MPR) for single-family homes. The FHA aims to modernize standards that have not been substantially revised in over two decades. The proposed changes seek to align FHA requirements with those of Fannie Mae and Freddie Mac, simplify policy language, and refine the scope of required repairs to reduce burdens on first-time and low-to-moderate-income homebuyers.