FHA Proposes Revisions to Regulations Governing Refinancing of Existing Cooperatives 

 

Earlier this year, the Office of the Assistant Secretary for Housing proposed a new rule to revise existing regulations limiting FHA insurance to existing rental projects. 

In summary, the rule addresses the continuing downturn in the multifamily housing market by increasing available refinancing sources for existing housing cooperatives.  The goal is to provide FHA mortgage insurance as a basis to improve the availability of funds and provide a more favorable interest rate.  Such a rule, if approved, will enable existing multifamily cooperative owners to obtain FHA  insurance for the refinancing of existing indebtedness.  The public comment period was scheduled to close April 4, 2011.  More news to follow