Senator Ruben Gallego (D-AZ) is introducing a bipartisan bill with Senator Dave McCormick (R-PA) to increase the nation's housing supply by raising the multifamily home loan limit.
The simply yet aptly named Housing Affordability Act amends the National Housing Act's statutory loan limits and brings the inflationary adjustment index, part of the Consumer Price Index (CPI), more in line with the Price Deflator Index of Multifamily Residential Units Under Construction, thereby making construction costs more accurate.
After all, the loan limit for multifamily housing has not been updated since 2003, which Politico said was to prevent the Department of Housing and Urban Development (HUD) from subsidizing luxury real estate. Still, the lack of updates now means that too many areas are considered "high-cost."
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"To tackle the affordable housing crisis, we need to make building homes easier and cheaper. But outdated regulations are holding us back," said Sen. Gallego in his press release, adding, "By updating a nearly two-decade-old loan limit, the Housing Affordability Act will expand access to affordable loans for building multifamily housing and ultimately bring down housing costs."
Similarly, Sen. McCormick said, "One of the biggest obstacles to widespread affordable housing in Pennsylvania and across the country is a lack of supply."
"By making a long overdue increase to the FHA's multifamily loan limits, we can incentivize the construction of more apartment buildings and, ultimately, increase access to housing for American families," Sen. McCormick continued.
The Arizona Senator's bill follows his recent letter to Interior Secretary Doug Burgum and HUD Secretary Scott Turner, signaling his support for their new task force exploring the possibility of opening federal lands to housing development.
Gallego said the measure was "a partial solution to addressing the nation's housing supply crisis," and urged for measures to ensure that it "prioritizes environmental stewardship, respects tribal sovereignty, and involves meaningful engagement with local, state, and tribal communities to ensure housing developments meet their specific needs."
