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HUD Decides Not to Hike FHA Insurance Premiums
Hailing it as a victory for affordable housing, NAHB applauded the Department of Housing and Urban Development's recent decision to cancel its planned increase in insurance premiums for several key Federal Housing Administration (FHA) programs that support new construction or substantial renovation of multifamily rental properties.
"Given the current difficulties in the mortgage markets, FHA programs are more important than ever for builders trying to provide affordable rental housing to America's working families," said NAHB President Brian Catalde. "If the premium increase had been implemented, it would have had a very significant negative impact."
HUD gave notice in November that it planned to push up mortgage insurance premiums on the Section 221(d)(4) program, as well as other programs, by as much as 16 basis points.
The increase was scheduled to take effect on Dec. 1 of last year, but HUD delayed its implementation after NAHB and other industry groups voiced strong opposition to the increase.
NAHB led a coalition fighting the planned increase, providing economic data and analysis that showed what a tremendous effect such a dramatic increase would have on the program, which overwhelmingly serves renters who earn only 60% to 80% of an area's median income.
"FHA supports affordable lending for the single-family markets, and it should also support affordable lending for multifamily rental housing for low- and moderate-income households, and holding the line on premiums will help ensure that it does," said Catalde.
For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350.
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