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Updated over 1 year ago on . Most recent reply
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question on HUDS "Borrower's Contract with Respect to Hotel and Transient Us"
Hello BP family,
I recently purchased my first triplex here in NE DC. I'm staying in one of the units, the other ones already came with tenants. Of course I used an FHA loan to close the deal. My question is a signed a HUDs Borrower's Contract with Respect to
Hotel and Transient Use of Property (92561). Apologies if this has been asked a million times but does this form basically mean I can't AirBnB a room out in my own unit if it's less than 30 days? I'm looking at the specific section below.
Section 513(a) of the National Housing Act, as amended,
provides that as long as mortgage insurance is outstanding,
no portion of the housing covered by any such mortgage shall
be used for transient or hotel purposes;
The Secretary has defined the term transient or hotel
purposes to mean (1) any rental for a period less than 30
days, or (2) any rental if the occupants of the housing
accommodations are provided customary hotel services such
as room service for food and beverages, maid service,
furnishing and laundering of linen, and bellboy service.
Thanks,
Ate