Effort Seeks Increase of Affordable Rental Housing Supply
Working to increase the nation’s supply of affordable rental housing, NAHB is seeking passage of legislation to correct five IRS technical advice memorandums (TAMs) limiting the effectiveness of low income housing tax credits. If successful, this effort will restore vital equity financing available under the credit and alleviate significant administrative burdens for affordable housing developers.
NAHB is also pushing for legislation that would enable the HUD secretary to increase FHA multifamily mortgage limits in high-cost areas where the need for rental units is especially acute.
In such cities as Boston, New York, Chicago, Los Angeles and San Francisco — where construction costs are far higher than in other parts of the country — FHA limits have been too low.
“This will greatly improve the effectiveness of the FHA multifamily insurance programs,” said Jerry Howard, NAHB’s executive vice president and CEO. “Markets currently unable to use the program would be able to start increasing the supply of much-needed new rental housing.”