Bill Would Lift Multifamily Loan Limits in High-Cost Areas
The House Financial Services Committee on July 26 approved legislation that would address housing cost discrepancies across the nation by empowering the secretary of Housing and Urban Development to increase the Federal Housing Administration's multifamily loan limit in high-cost areas by up to 170%.
Sponsored by Rep. Gary Miller (R-Calif.), H.R. 5503, the FHA Multifamily Loan Limit Adjustment Act of 2006, would allow the HUD secretary to raise the loan limit up to 215% on a project-by-project basis.
To ensure a strong committee vote, NAHB spearheaded a letter of support signed by seven housing industry groups.
The measure would allow major urban markets — such as San Francisco, New York, Chicago and Boston — which had previously been unable to take advantage of the FHA multifamily mortgage insurance programs, to now be able to provide much-needed new multifamily housing.
“In many areas of the country, the demand for affordable rental housing has dramatically outpaced the supply,” said Rep. Miller. “Developers are simply unable to provide affordable housing units in those areas because the current statutory limits for FHA mortgage insurance are unrealistically low. H.R. 5503 will help to ensure that builders can utilize FHA mortgage insurance so that hard-working Americans have access to decent, affordable rental housing.”
NAHB will urge the Senate to introduce companion legislation.
To read the legislation, click here and enter the bill number in the box at the center of the page.
For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.