A change made last month in the regulations concerning which buildings the Federal Housing Administration (FHA) judges to be eligible for financing could enable the construction of more mixed-use walkable developments, reports Angie Schmitt.
According to Schmitt, the FHA has finally loosened restrictions on the amount of commercial space a condominium project could have and still be eligible for financing, "thanks in large part to the efforts of groups like Congress for the New
Urbanism and the National Association of Realtors."
"FHA loosened a restriction that forbade government-backed loans from
supporting condominium projects that contained more than 25 percent
commercial space. New rules will allow credit to flow to projects with
up to 35 percent commercial space - or 50 percent in certain cases where
the developer applies for an exemption." The outdated restrictions, says Schmitt, "have hampered the growth of mixed-use housing."
"This is one indication that FHA is making big strides," said CNU
spokesperson Benjamin Schulman. "We view this as the first step in this
long process to reform the regulation."
Read the full story: Federal Housing Administration Clears Way for More Walkable Development
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