Congress Revives Stalled FHA Multifamily Insurance Programs
Congress last Thursday passed a supplemental appropriation of $2 billion for the Department of Housing and Urban Development to put an end to a temporary suspension of FHA multifamily insurance after the commitment authority to insure loans during the current fiscal year ran out on Sept. 16.
The emergency legislation was badly needed to prevent major disruptions in the program, and NAHB worked with HUD and other industry groups to arrive at a solution.
Without an infusion of money, the queue of projects waiting for firm commitments could have become substantial, creating additional problems for the program at the start of the new fiscal year this Wednesday.
As of the end of last week, the Congress had not passed most of the appropriations bills for fiscal 2004, including money for the FHA’s insurance fund. However, the House and Senate passed a continuing resolution that includes up to $3.8 billion in commitment authority for FHA insurance.