MBA CREF Policy Update Nov. 17, 2022

Bill Killmer; Mike Flood

MBA Participates in White House Meeting on Tenant Protections

Last Tuesday, Matt Rocco, 2023 MBA Chairman, and Chairman of the Board and Chief Executive Officer of Grandbridge Real Estate Capital, joined a small group of industry and affordable housing leaders for a constructive meeting with key White House and agency staff on affordable rental housing and tenant issues. The group discussed topline issues and best practices for the rental market, including leasing and compliance, housing counseling and education, and affordable housing supply.  

  • Why it matters: Rocco’s remarks focused on his experiences as a provider of multifamily financing through the government-sponsored enterprises’ and Federal Housing Administration’s lending programs, highlighting how tenant education can help renters stay in their homes. He also touted credit history building programs for renters as a way to establish credit to eventually buy a home. With a letter from tenant rights groups currently circulating that asks for the White House to impose rent control on GSE loans, Rocco stressed that rent control is not the answer, as it has been proven to reduce both the supply and the overall health of affordable rental housing.  
  • What’s next: MBA will continue to work with members, the Biden administration, Congress, and industry stakeholders on safe and responsible policies that increase affordable rental housing and homeownership options for all households.

For more information, contact Bill Killmer at (202) 557-2736 or Mike Flood at (202) 557-2745.

MBA, Industry Groups Call for Increase to FHA Multifamily Large Loan Limit Threshold  

Last Monday, MBA and a coalition of industry trade groups submitted a joint letter to the Department of Housing and Urban Development (HUD) asking for an increase in the large loan limit threshold found in the Multifamily Accelerated Processing (MAP) Guide from $75 million to $120 million, and for a review of certain FHA loan requirements that are unreflective of market circumstances and unresponsive to borrower needs. 

  • Why it matters: The large loan limit threshold has not been increased since 2014, despite significant increases in the costs of construction. An increase in the threshold will help facilitate the production of more rental housing units at a time when supply is desperately needed across the country. 
  • What’s next: HUD is considering an increase to the large loan limit threshold, saying it’s under “active review.” MBA remains committed to working with HUD on safe and responsible policies that increase affordable rental housing supply. 

For more information and to join the call, contact Megan Booth at (202) 557-2740.

MBA Launches Online Map on State and Local Rent Control; Orange County, Florida, Voters Approve Rent Control Ballot Initiative 

Last week, voters in Orange County, Florida, which includes Orlando, approved a ballot initiative by nearly 60% in favor of a county ordinance limiting rent increases to 9.8% over the next year. However, pending litigation means the results will not yet be certified. 

  • Why it matters: As a result of a lawsuit filed in September 2022 by the Florida Apartment Association and the Florida Association of Realtors seeking to invalidate the ballot measure, a judge ordered that the ordinance had to go to voters before a suit could proceed. The judge ordered that the measure be placed on the ballot but stayed its results, ordering the Orange County Supervisor of Elections and the county canvassing board not to certify them. Apartment owners are contesting the ordinance’s legality due to Florida’s statewide preemption of local rent control laws. 
  • What’s next: Given the ongoing proposals and ballot initiatives on rent control in Orange County and elsewhere, MBA earlier this week published an online map that provides an overview of state and local rent control laws. MBA will follow ongoing developments on this issue and will update the map accordingly.  

For more information, contact William Kooper at (202) 557-2737 or Grant Carlson at (202)-557-2765.

Commercial/Multifamily Borrowing Declines 13 Percent in Third-Quarter 2022

Commercial and multifamily mortgage loan originations decreased 13 percent in the third quarter of 2022 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, released Tuesday

  • MBA’s Jamie Woodwell, Head of Commercial Real Estate Research, said, “After a strong first half of the year, rising interest and capitalization rates began to affect deal volume during the third quarter. Increasing yields across investment alternatives – including the 10-Year Treasury yield more than doubling during the first nine months of the year – have shifted property financing and values, and it will take time for the market to fully absorb these changes. Volatility has been equally impactful, making the sizing of transactions extremely difficult. The result has been the first of what may be many quarters of depressed borrowing and lending activity.” 
  • To read the latest report, click here.

For more information, contact Jamie Woodwell at (202) 557-2936.

State Trackers

  • State eviction moratorium and legislative activity tracker available here and here.

For more information, contact William Kooper at (202) 557-2737 or Grant Carlson at (202) 557-2765.

Upcoming MBA Education Webinars on Critical Industry Issues

MBA Education continues to deliver timely programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming webinars, which are complimentary to MBA members:

  • Inflation, Interest Rate, Cap Rates & Values: What Do We Really Know? – November 30
  • Ensuring HMDA Data Integrity and Common Reporting Issues – December 14
  • Ten Things Your Company Must Do in 2023 – January 18

MBA members can register for any of the above events and view recent webinar recordings.

For more information, contact David Upbin at (202) 557-2931.