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Week of May 10, 2004

Front Page

President's Message

* For Working Families, Affordable Housing Is in Short Supply

Housing and Economics

* Consumers Win Latest Round in Canadian Lumber Dispute
* A Housing Price Bubble Does Not Exist, Freddie Mac Economists Say
* Eye on the Economy

Housing Politics

* Sarbanes Blames ‘Ideologues’ for Impasse Over GSE Reform Legislation
* Provisions in Habitat Reform Bill Supported by Builders
* NAHB Unveils Virtual 'Get Out The Vote' Election Web Service

Business Management

* NAHB Kicks Off General Liability Insurance Initiative
* Review Your Accounting Reports to Protect Yourself From Fraud

Environment

* Supreme Court Decision Brings Good News on Residential Construction Equipment
* Storm Water Permit Guide Available at BuilderBooks.com

Multifamily

* Stillman Knight Honored for Affordable Housing Efforts
* High-Density Housing an Opportunity for ‘Urban Quality’ Design

Small Builders and Remodelers

* Build a Brand: Become a Household Name
* Publicize May as National Remodeling Month in Your Market

Design

* Survey Says Buyers Want Laundry Rooms, Linen Closets
* Best in American Living Awards Accepting Entries

Seniors Housing

* HUD Urged to Provide FHA Insurance for Age-Restricted Elderly Housing
* Not-So-Big Homes Provide Unique Marketing Advantages

Legal Issues

* Texas Town’s Misconduct Not Enough to Show Taking

Housing Finance

* Responses Sought on HUD Proposal For Fannie Mae, Freddie Mac Housing Goals
* National Housing Conference to Honor Angelo Mozilo for Lowering Homeownership Barriers

Codes and Standards

* Stair Geometry, Window Sill Heights on Hearings Agenda

International

* Second International Housing Conference of the Americas Promotes Business Across Mexican Border

Labor

* NAHB Members, Job Corps Students Help DC Habitat in Family Build

Building Products

* Vinyl Siding Stays Put During Severe Weather

Builder's Engineer

* Gold-Fringed Business Cards?

Building News Coast To Coast

Association News & Events

* Calendar of Events

NBN Back Issues

 

Responses Sought on HUD Proposal For Fannie Mae, Freddie Mac Housing Goals

Input from association members is being sought as NAHB prepares a formal response to a proposal by the Department of Housing and Urban Development on the annual housing goals for Fannie Mae and Freddie Mac for 2005-2008.

Under a regulation that was established by HUD in 2000, the two government sponsored enterprises (GSEs) are required by law to meet annual goals for 2001-2004 on their purchases of mortgages for low- and moderate-income people; loans in underserved, geographically targeted areas; and mortgages for very-low income people and neighborhoods.

HUD’s proposed goals for the next four years were published in the Federal Register on May 3. Comments in response to the proposal must be submitted to HUD by July 2. For an electronic version of the proposal and additional supporting documentation, including a regulatory analysis, click here. The materials run for several hundred pages, but a summary is also posted on this site.

A preliminary analysis of the proposal indicates it would significantly increase current goal levels:


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  • Low- and Moderate-Income Goal — Increases from 50% currently, to 52% in 2005; 53% in 2006; 55% in 2007; and 57% in 2008.
  • Underserved Areas Goal — Increases from 31% currently, to 38% in 2005; 39% in 2006; 39% in 2007; and 40% in 2008.
  • Special Affordable Goal — Increases from 20% currently, to 22% in 2005; 24% in 2006; 26% in 2007; and 28% in 2008.

Citing significant GSE underperformance in the mortgage market for single-family and multifamily rental properties, the proposal would increase the goal for very-low income multifamily properties. The proposed goals also target increasing the homeownership rates of first-time home buyers and of lower-income and underserved people in metropolitan areas.

The proposal does not extend the bonus point system for small multifamily properties, which NAHB strongly supports as a way to direct GSE activity toward specific underserved sectors.

While the proposal is generally consistent with NAHB’s position in favor of more challenging goals, the association most likely will recommend changes to provide more emphasis on markets and areas that it has identified as priorities.

In order to meet HUD’s July 2 deadline for comments, NAHB needs to receive feedback from members by June 11. E-mail Chellie Hamecs, or call her at 800-368-5242 x8425; or contact Mike Carrier, x8529.
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