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FHA Multifamily Mortgage Insurance Programs Back in Business

The Office of Management and Budget (OMB) certified to Congress on Friday evening, Dec. 19, that HUD’s FHA programs are operating according to statutory requirements. OMB’s actions will enable a significant number of multifamily affordable housing projects financed with low-income tax credits or tax-exempt bonds to proceed. Without OMB action, those projects could have been scuttled because they would have been unable to close loans.

The FHA program was temporarily in jeopardy when Congress, on Dec. 9, passed a provision requiring the certification notification. NAHB immediately worked with OMB, HUD and key members of Congress and their staff, with NAHB President Kent Conine contacting Acting HUD Secretary Alphonso Jackson and key OMB staff, to complete the process as quickly as possible.

In early December, the FHA multifamily mortgage insurance programs were shut down because HUD ran out of the authority it was granted in the continuing resolution to issue commitments for new loans.

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Although Congress granted HUD additional authority in an amendment to the Dec. 9 continuing resolution, a provision in the amendment required OMB to certify that HUD did not exceed its authority to issue new HUD/FHA commitments under an earlier resolution.

There had been some confusion earlier about whether HUD had exceeded its authority to issue commitments to insure multifamily loans by $600-$700 million.

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Multifamily Leadership Board Conference Call — Jan. 8, 2004

Industry expert Ron Witten, president of Witten Advisors, Dallas, will brief the members and invited guests of the Multifamily Leadership Board on what to expect in the coming months in terms of trends and hot markets. For information on participation, contact Laura Zaner, 800-368-5242 x8563.

2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala

Don’t miss the Multifamily Pillars of the Industry Conference and Awards Gala, the premier educational and networking event of the year for the multifamily industry, in Palm Springs, CA, March 28-30. Explore both the current and future state of the multifamily industry. Click here for more information.

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