The Washington Report

NAR has joined 14 other housing organizations in a letter supporting the bipartisan Housing Affordability Act (S.1527), sponsored by Senators Reuben Gallego (D-AZ) and David McCormick (R-PA). The legislation updates FHA's multifamily loan limits to reflect current construction costs.

The FHA's multifamily loan limits have remained unchanged since 2003, falling far behind today's construction costs. This outdated policy has become a barrier to building middle-income housing, with nearly all communities now classified as "high-cost areas"—meaning they exceed normal loan limit thresholds and require special exceptions to qualify for FHA financing.

The bill would change the annual adjustment index from the Consumer Price Index to the Price Deflator Index of Multifamily Residential Units Under Construction, more accurately tracking construction costs.

This legislation would help expand housing supply—a top NAR priority—while bringing additional payments to the FHA Mortgage Insurance Premium fund and reducing regulatory burden.

NAR will continue monitoring this legislation as it moves through Congress and provide updates as developments occur.

On May 12th, NAR sent a letter to the Office of Management and Budget in response to its request for input on “proposals to rescind or replace regulations that stifle American businesses and American ingenuity.” Specifically, the OMB sought, “comment from the public on regulations that are unnecessary, unlawful, unduly burdensome, or unsound.” 

NAR’s letter was wide ranging and included changes to regulations at Fannie Mae and Freddie Mac, as well as the FHA, USDA, VA and other agencies that would help housing and REALTORS®.  These regulations covered fees, bank capital rules, condo regulations, appraisal waivers and reviews, construction methods, rental reporting, VA compensation rules, and the independent contractor rule among other issues.