Housing Bill Passage Garners Mixed Industry Response

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WASHINGTON, DC-The US House of Representatives has passed the Federal Housing Finance Reform Act, or HR 1461, inciting both intensely negative and positive responses from a number of real estate industry-related organizations. The National Low Income Housing Coalition sounded off on language within the legislation that prevents organizations that engage in voter registration activities from benefiting from the fund, while the Mortgage Bankers Association applauded the House for a provision that overhauls the troubled government-sponsored enterprises Fannie Mae and Freddie Mac.

Part of the Federal Housing Finance Reform calls for the creation of the Affordable Housing Fund, which will direct a portion of Fannie Mae’s and Freddie Mac’s after-tax earnings to qualifying organizations for housing construction. The bill stipulates, however, that organizations that have participated in non-partisan voter registration within the last year will be barred from receiving grants from the fund.