Bill Overview
Title: Securing Access to Financing for Exterior Repairs in Condos Act of 2022
Description: This bill allows an owner of a condominium (condo) unit to finance, through loans backed by the Federal Housing Administration, special assessments charged by the condo's governing body for rehabilitation, repair, replacement, or other improvement of common systems, infrastructure, facilities, features, portions, or areas.
Sponsors: Rep. Crist, Charlie [D-FL-13]
Target Audience
Population: Owners of condominium units globally
Estimated Size: 5000000
- The bill affects owners of condominium units who are subject to special assessments for maintenance or improvements of shared amenities.
- It specifically addresses financing options for these condo owners, allowing them to take out loans backed by the Federal Housing Administration (FHA).
- There are millions of condominium units in the United States and millions more globally.
- The bill does not affect renters or owners of other types of housing, it specifically targets condo owners.
- The key practical considerations are the number of condo owners and communities requiring significant repairs or improvements, especially in climates or regions where such repairs may be more frequent.
Reasoning
- The policy primarily targets owners of condominiums faced with expensive special assessments for repairs or improvements to shared spaces and structures, emphasizing its relevance in areas with aging buildings or high frequency of severe weather conditions.
- Around 5 million condo units in the U.S. provide a broad potential impact field, but only a portion will likely use the FHA-backed loans, as not all condos will require such repairs simultaneously.
- Budget constraints will limit the number of loans that can be provided annually. Given the $20 million USD budget in year 1 and a $332.5 million USD budget over 10 years, only a fraction of the affected population will benefit each year.
- Demographic diversity, including age, income, and location, is reflected to illustrate the range of potential impact from the policy.
Simulated Interviews
Real Estate Agent (Miami, FL)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I'm in favor of any policy that helps alleviate the financial strain of these assessments, especially after hurricane damage.
- This option might help younger owners like me who haven't had time to build significant savings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Retired Engineer (Chicago, IL)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I'm relieved there might be a way to manage financing for these unexpected expenses.
- Living on a fixed income means any big assessment can hit hard.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Software Developer (Denver, CO)
Age: 42 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 14/20
Statement of Opinion:
- I probably won't need this anytime soon, but it's good to have as a backup plan.
- New buildings have fewer issues, but things can change over time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 7 |
Tech Entrepreneur (Austin, TX)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- This could be helpful if I ever face a large assessment, as my income can be unpredictable.
- I like having the option without using funds that could go into my business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Nurse (Seattle, WA)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- As a board member, I see the challenges in managing funds for big repairs.
- This offers a practical option for those facing higher dues or assessments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Financial Analyst (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 7/20
Statement of Opinion:
- Living in New York, assessments can be astronomical; this financing could help flatten the financial strain.
- I'd need details on loan terms to fully assess benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
Retired Teacher (Phoenix, AZ)
Age: 67 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 11/20
Statement of Opinion:
- On a fixed income, anything that eases future financial burdens is a welcome option.
- My condo hasn't needed major repairs yet, but you never know.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
Artist (San Francisco, CA)
Age: 31 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 6/20
Statement of Opinion:
- Creative work means income flows aren't guaranteed. Reducing upfront financial pressure is great.
- I like having options for financing that don't involve exhaustive credit checks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Commercial Pilot (Dallas, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- I fly a lot and don't have time to manage big financial surprises; it's reassuring to have help for potential assessments.
- I'm supportive, but will need to see the fine print on these loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Environmental Scientist (Boulder, CO)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- I'm interested to see how this could support sustainable updates to shared facilities.
- Our community focuses on collective improvements, so financing is often a collective conversation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $30000000)
Year 2: $25000000 (Low: $18000000, High: $35000000)
Year 3: $30000000 (Low: $20000000, High: $40000000)
Year 5: $35000000 (Low: $21000000, High: $45000000)
Year 10: $40000000 (Low: $25000000, High: $50000000)
Year 100: $50000000 (Low: $30000000, High: $60000000)
Key Considerations
- The scale of special assessments that condo boards can impose may vary greatly, affecting demand for the loans.
- In regions frequently affected by harsh weather, the need for repairs may be more prevalent, thus affecting cost estimates.
- The financial soundness of the FHA could be impacted by any defaults on these loans, so risk mitigation strategies must be considered.