The ancient concept of condominium ownership has been revived in this country as an answer to the increasing demand for adequate urban housing. The advantages of individual home ownership have had to be subordinated by many families in favor of the convenience of apartment rental. A partial answer to this problem has been found in the creation of cooperative apartments, but this device still leaves much to be desired.' It was not until Puerto Rico achieved its initial success with condominiums that the advantages of this form of home ownership fully came to the attention of this country. To encourage the use of condominiums as a form of middle-income family home ownership, Congress enacted the National Housing Act of 1961. Section 234 of the act provided authority for the Federal Housing Administration to insure mortgages on condominium projects in those states whose laws permit the condominium form of ownership. Accordingly, a flood of state legislation has followed in an effort to meet the requirements of section 234. In order to provide guidelines for this state legislation the FHA drafted a model statute which satisfies the requirements of section 234, and yet leaves room for modification to meet local conditions.
Richard R. McDowell,
Condominium--Tax Aspects of Ownership,
18 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol18/iss4/9