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Image by Paul Brennan from Pixabay 

January 8, 2024 - As the new year unfolds, Congress finds itself at the intersection of crucial legislative decisions that will impact California REALTORS® and their clients. The first deadline, slated for January 19, is when Congress must act by to provide funding for the Dept. of Housing and Urban Development (HUD), which oversees the Federal Housing Administration (FHA) mortgage insurance program and various affordable housing initiatives. 

Congress must pass either an appropriations bill for HUD for the remainder of the year or a short-term extension by January 19 or HUD will shut down. While HUD has stated FHA lending will continue during a government shutdown, HUD and its regional offices would be minimally staffed, which could delay FHA transactions the longer a shutdown lasts.     

A second budget deadline looms on February 2, 2024, carrying implications for California REALTORS® and homebuyers in flood prone areas. The current authorization for the National Flood Insurance Program (NFIP) is set to expire on February 2, necessitating a timely renewal. The NFIP plays a pivotal role in safeguarding properties against flood-related risks, and its renewal is paramount for homeowners and real estate professionals alike, particularly in a state prone to various environmental challenges. Homebuyers who purchase a home in a flood zone are required to have flood insurance to qualify for their mortgage. 

NAR and C.A.R. continue to work with Congress and highlight the importance of ensuring there is no disruption to California’s and the nation’s real estate market.
Source: C.A.R.