CREF Policy Update April 11: HUD Enacts New Rent Control on LIHTC-Financed Properties
HUD Enacts New Rent Control on LIHTC-Financed Properties
Last Tuesday, the Department of Housing and Urban Development (HUD) implemented a 10% cap on the annual income limit increases for low income and very low-income residents.
• The move reduces the allowable LIHTC rent for properties – previous calculations would have resulted in a higher than 10% increase.
• Prior to the announcement, MBA CEO Bob Broeksmit, CMB, published a statement of strong disapproval of the action, saying “rent control has consistently proven to be a failed policy that discourages new construction, distorts market pricing, and leads to a degradation of the quality of rental housing,” and that “it will severely suppress–if not kill–the program.”
Why it matters: The LIHTC program is the most successful public-private partnership to create affordable housing in the nation. Instituting rent controls will dampen interest in the program by creating red flags for housing providers.
What’s next: MBA and its coalition partners oppose this policy and are working together to strengthen the LIHTC program.
• MBA also continues to support legislation that enhances the LIHTC program, and supports other measures to increase housing supply.
For more information, please contact Stephanie Milner at (202) 557-2747 or Megan Booth at (202) 557-2740.
Community Reinvestment Act Rule Implementation Date Delayed
Recently, a Texas federal court granted a preliminary injunction that stopped the implementation of the Community Reinvestment Act (CRA) final rule (issued in October 2023)
• In February, a number of organizations sued the banking agencies, arguing the rule exceeded their regulatory authority. The rule was expected to go into effect on April 1, 2024, and instead will be delayed during the injunction.
Why it matters: The final rule included several of MBA’s recommendations, including to increase the threshold for delineating additional assessment areas, revising the weightings assigned to the overall Retail Lending and Community Development tests, maintaining full CRA credit for Low-Income Housing Tax Credit (LIHTC) investment, and recognizing Special Purpose Credit Programs in a bank’s CRA rating.
Go deeper: MBA’s summary can be found here.
What’s next: MBA will continue to monitor the court case and share relevant information with members.
For more information, please contact Stephanie Milner at (202) 557-2747.
Get Involved in MAA Action Week: April 29-May 3!
MBA’s annual Mortgage Action Alliance (MAA) Action Week is arriving soon, April 29-May 3! Sign up today and promote the importance of advocacy within your company or organization. This industry-wide campaign allows ALL of us to take part and engage in the legislative and regulatory process on issues that directly impact real estate finance professionals. Membership in MAA can make a difference in how YOU and your company drive positive change by adding your voice to our collective efforts.
Why it matters: Advocacy happens 365 days a year. Through regular contact with your lawmakers and their staff members via MAA Calls to Action and other sustained “grasstops” efforts, you can establish yourself as a “go-to” constituent for our industry.
What’s next: Save the date for MAA’s Quarterly Webinar Series hosted by the Legislative & Political Affairs team on Thursday, May 2, at 2:00 PM ET. Hear key policy updates – along with case studies describing how the MBA staff is advocating on behalf of our association’s members to help achieve pro-industry outcomes. More information will be shared in the coming weeks.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Erin Reilly at (202) 557-2751.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely single-family and commercial/multifamily programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – which are complimentary to MBA members:
• Mastering Compliance, Efficiency, and Successful Adoption with Consumer Permission Platforms – April 11
• Rethink Everything: You “Know” To Be A Next Gen Loan Officer – A Deeper Dive With the Writers & Experts Webinar Series: Social Media – April 17
• Climate-Change Disclosure Rules and Impact on Mortgage Lending – April 18
• Basics of Commercial Loan Closing and Loan Documentation – May 9
• Using Data and Technology to Connect with Today’s Buyers to Increase Homeownership – May 14
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For any questions, please contact David Upbin at (202) 557-2931.
