On September 22, the FHA posted proposed policy updates to its single-family Minimum Property Requirements (MPRs) in its Single Family Housing Policy Handbook 4000.1 on the Single Family Drafting Table for stakeholder review and feedback. The proposed overhaul — the first comprehensive update to the MPRs in more than two decades — incorporates feedback received on a request for information published May 29 (previously covered by InfoBytes here) and seeks to modernize standards that, according to the agency, have created unnecessary burdens, increased housing costs, discouraged industry participation and limited access to FHA-insured financing, particularly for first-time and low- to moderate-income homebuyers.

Among the key changes, the proposal would: (i) reorganize and consolidate property eligibility and acceptability standards into a streamlined framework; (ii) adopt GSE condition and quality rating standards for property acceptability; (iii) reduce the required scope of lead-based paint repairs from the entire property to the dwelling structure; (iv) replace what the agency described as outdated manufactured housing installation standards; (v) remove requirements for mortgagees to confirm connection to public water and sewer systems when not mandated by local authorities; and (vi) eliminate observation requirements for kitchen appliances, attic spaces and crawl spaces. Stakeholders may submit feedback through November 6 using the instructions on the Drafting Table.