The coalition wants Congress to increase by 25% the base amount FHA--which insurances financing on multifamily housing development--can insure for multifamily housing, with additional allowances for high-cost areas. Mortgage insurance limits haven't been raised since 1992 while officials say housing construction costs have jumped 25%. As a result, new construction hasn't kept pace, leaving low- and moderate-income working families without enough available affordable rental housing.

"Although homeownership may be the American dream, finding affordable rental housing is often a nightmare for many working families," says MBA president Andrew D. Woodward. "We are facing an affordable housing crisis in this country. Raising the FHA multifamily loan limits is an important first step in solving this problem. This change will have an immediate impact by allowing the FHA and its housing partners to increase the supply of affordable housing for working families."

No new units of FHA-backed multifamily housing were produced in 2000 in New York City, Boston and San Francisco; Dallas, Los Angeles and Washington DC each had one new FHA-backed multifamily development in 2000. Coalition officials say in 2000 there was no government-backed rental housing production in Akron and Cincinnati OH, Baltimore MD, Birmingham AL, Norfolk VA, Oakland and San Jose CA, Providence RI, Rochester and Syracuse NY, Salt Lake City UT, and Tampa FL.