New Coalition Pushes Affordable Rental Housing

WASHINGTON, DC–Saying that new construction of federally insured affordable rental housing has all but disappeared, a new coalition is urging Congress to take action. The formation of the Coalition for Affordable Rental Housing was announced at a national housing summit hosted Tuesday by the Mortgage Bankers Association of America.

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.”