The Mortgage Bankers Association released information Thursday showing that more than $3.4 billion in loans in 33 states and Washington, DC could be suspended. According to the MBA, even though Congress in December appropriated $40 million to continue insuring the loans, the Bush administration has said it won't release the funds.

"We support President Bush and [Housing and Urban Development] Secretary Mel Martinez in their efforts to strengthen the economy. But without these funds, projects will not be built, and an opportunity to provide an immediate economic stimulus and produce tens of thousands of construction jobs will be lost," MBA vice president John A. Courson told the House Subcommittee on Housing and Community Opportunity.

The MBA asked lawmakers and the Bush administration to release the funds, set aside by Congress in an emergency appropriation to try to avert a shutdown, plus another $115 million for the remainder of the fiscal year. The $40 million can only be released under certain circumstances, including deeming the situation an emergency. According to the MBA, officials say they don't plan to invoke the emergency provision needed to release the funds.

"The nation is now facing an affordable housing crisis, and it is particularly acute in my own city of Boston," said Boston Mayor Thomas M Menino, who also serves as chairman of the US Conference of Mayors advisory board. "Resolving the FHA multifamily credit subsidy crisis will ensure that FHA multifamily programs are available to cities that are in desperate need of more rental housing." The National Association of Homebuilders and the National Association of Realtors added their support to the call for freeing up the funds.

Among the areas that would be hardest hit by the shutdown is Texas, which stands to lose 13,124 units with loans totaling more than $730 million if the funds aren't made available. Florida will lose more than 4,500 units with loans of more than $350 million and the Washington, DC metro area and its suburbs would lose more than 6,100 units with loans of almost $500 million.

Courson was before the committee to testify about housing affordability and availability. Also testifying were Menino, HUD economist Kathy Nelson, National Housing Conference executive director Robert Reid, National Low Income Housing Coalition president Sheila Crowley, Local Initiatives Support Corporation president Michael Rubinger, Robert Nielson of the National Association of Homebuilders and Barbara Thompson of the National Council of State Housing Agencies. Full testimony is available at http://www.house.gov/financialservices/050301wl.htm