As the new year unfolds, Congress finds itself at the intersection of crucial legislative decisions that will impact California REALTORS® and their clients. Congress must act by the first deadline, slated for January 19, 2024, to provide funding for the Department of Housing and Urban Development (HUD). HUD is the overseeing body of 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. If not, HUD will shutdown. While HUD has stated FHA lending will continue during a government shutdown, HUD and its regional offices would be minimally staffed. This could delay FHA transactions the longer a shutdown lasts.
A second budget deadline looms on February 2, 2024, carrying implications for California REALTORS® and homebuyer 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.