“H.R. 1985 allows a number of high-cost urban markets that are currently unable to use FHA multifamily mortgage insurance mortgage — such as New York, Boston, San Francisco, Chicago and Los Angeles — to be able to start increasing the supply of much-needed quality affordable housing for America’s working families,” said Jerry Howard, NAHB’s executive vice president and CEO.
During debate on the House floor, Rep. Frank cited the important role that NAHB played in moving the bill through Congress. “I would also like to acknowledge the role that the National Association of Home Builders played in helping educate all the members (of Congress) to the importance of this and to the benefit which we will all receive from it,” he said.
The FHA multifamily mortgage insurance program is a critical source of financing for affordable multifamily rental housing. Raising the limits in high-cost markets, where construction costs are significantly higher than other areas of the country, is important because it will enable developers there to take advantage of the loan programs, said Rep. Miller.
Rep. Frank also noted that the legislation “has the unusual aspect of probably helping to reduce the federal deficit. FHA premiums, given the repayment rate, particularly when we are dealing at this end of the spectrum, make money for the federal government. So if this has any impact on the federal budget, it will be a directly positive one, not simply an economic activity that will be generated, that housing will be built, but specifically in the collections that will come from the FHA.”
Companion bill S. 1714, introduced by Sen. Jon Corzine (D-NJ), is pending in the Senate.
[ Go to Top ]