Washington, D.C. – September 16, 2009 – (RealEstateRama) — Congresswoman Carolyn Maloney (D-NY) submitted a statement into the Congressional Record yesterday in support of H.R 3527, the FHA Multifamily Loan Limit Adjustment Act of 2009. The bill, which was authored by Reps. Anthony Weiner (D-NY) and Gary Miller (D-CA), and of which Maloney is a cosponsor, would increase Federal Housing Administration limits on loans the agency guarantees for developers to build high-rise, elevator buildings – one of the most common types of new construction in New York. Under the bill, FHA loan limits would be raised to $93,209 per two-bedroom unit, from the current $68,070. Maloney estimated that the legislation, if passed, would help complete 14 stalled development projects in New York City, adding more than 2,000 apartments to the city’s affordable housing stock.
The full text of Maloney’s statement follows:
“I rise today in support of a bill that will help: create jobs in the hard hit construction trades; address the long standing issue of affordable rental housing in major urban and rural centers; and fix lingering problems with better financing and liquidity.
“H.R 3527, the FHA Multifamily Loan Limit Adjustment Act of 2009 does all that and more, so I am proud to be a cosponsor along with my colleagues, Representatives, Weiner, Miller and Frank.
“The FHA’s current limits on multifamily loans were certainly well intentioned, but they significantly restrict the ability of developers to use FHA insurance programs to finance badly needed affordable rental housing in high cost areas such as New York City and State. In 2007 and 2008, HUD data shows that only 3 non-subsidized high rise construction or rehabilitation projects received FHA insurance approval in the whole country!
“That’s in part because the current FHA multifamily loan maximum of $68,070 per two-bedroom unit for is simply not high enough in high cost areas. This puts a damper on new construction and badly needed rehabilitation in urban and suburban areas – where construction costs are higher.
“But by simply increasing the loan limit as this bill does to $93,029, FHA can facilitate construction and rehabilitation of apartments where financing is not available. I am told that there are currently 11,000 units in elevator structures across the country on hold with a combined mortgage amount of more than $3 billion. There are a total of 14 projects worth $628 million stalled in New York City. Completing these projects would provide 2,088 affordable rental units in Brooklyn, Manhattan, and Queens.
“When this bill becomes law, these construction projects can move forward, create jobs and build new and more affordable homes.
“In order to thrive our major cities depend on a supply of decent rental housing in buildings that are well-maintained. Let’s give the FHA the tools they need to move forward and enable these projects, these jobs, these American dreams.
“I urge my colleagues to support this important legislation.”
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Contact: Joe Soldevere, (212) 860-0606
