Hensarling: New Law Modernizes Outdated Housing Rules

WASHINGTON – (RealEstateRama) — House Financial Services Committee Chairman Jeb Hensarling (R-TX) made the following comments after President Obama signed into law H.R. 3700, the Housing Opportunity Through Modernization Act:

“Our committee has achieved a solid record of passing bipartisan legislation, including this important bill that modernizes outdated housing rules and regulations that in some cases have not been updated in over a generation. By eliminating needless red tape and streamlining the delivery of housing assistance, this new law will help focus scarce resources on those with the greatest need.”

H.R. 3700, sponsored by Housing and Insurance Subcommittee Chairman Blaine Luetkemeyer (R-MO), was approved by the Financial Services Committee by a vote of 44-10 on Dec. 9, 2015. The House passed the bill by a vote of 427-0 on Feb. 2, 2016.

H.R. 3700 promotes greater efficiency in existing housing assistance programs by streamlining the inspection protocol for rental assistance units, simplifying the income recertification policies for all assisted households, modifying Federal Housing Administration (FHA) requirements for mortgage insurance for condominiums, clarifying homeless assistance program requirements, delegating rural housing loan approval authority, and providing limited flexibility between public housing operating and capital funds.

The new law also gives state and local housing agencies, and private owners, enhanced flexibility in meeting key program objectives such as reducing homelessness, improving access to higher-opportunity neighborhoods, and addressing repair needs in public housing.