President Donald Trump has been considering declaring a National Housing Emergency over the past few weeks, and some housing organizations are putting in requests for items to be included.
The Community Home Lenders of America and the Community Associations Institute jointly asked the administration Wednesday to allow the Federal Housing Administration to insure loans on condos in developments that have already been approved by Fannie Mae and Freddie Mac, but not yet backed by the government agency.
“CHLA applauds the Trump Administration for reportedly looking at taking housing emergency actions to address homeownership and housing affordability challenges,” said Scott Olson, its executive director, in a press release. “Since condominiums are typically more affordable than freestanding homes, a simple but effective action to add to an emergency housing list would be to allow FHA to insure condos in projects approved by Fannie and Freddie – but not by FHA.”
Since word of a possible housing emergency declaration was first reported, many industry leaders have thrown out suggestions for the president, including granting more appraisal waivers, cutting guaranteed fees and providing tax relief. The CHLA also called on Fannie Mae and Freddie Mac to temporarily be allowed to purchase mortgage-backed securities to cut rates.
The CHLA, the only national association that exclusively represents independent mortgage banks, and the CAI, which represents 7 million Americans living in condos, cooperatives and homeowners associations, are teaming up for this effort to ease guidelines in this particular form of housing.
Since the Surfside building collapse four years ago, lending rules have tightened for condo developments, putting properties across the country on a nonwarrantable list. The two associations hope this request will help resolve the disparity.
Condos are one of the most accessible ways to own a home, the two associations said, and in the 25 largest U.S. metropolitan areas, condos are, on average, more than 54% more affordable than single-family homes, according to Zillow data from 2024.
“Streamlining this approval process is a common-sense step toward greater government efficiency, reduced bureaucracy, and expanded access to affordable housing for working families,” Olson said.
