CREF Policy Update: Federal Reserve Keeps Rates Unchanged; Rate Cut in September?
Federal Reserve Keeps Rates Unchanged; Rate Cut in September?
The Federal Reserve held the federal funds rate at a target range of 5.25-5.50% last Wednesday, while indicating that recent signs of cooling inflation is paving the way for a rate cut as soon as September.
Read more of MBA Chief Economist Mike Fratantoni’s full commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
MAA Update: Senate Procedural Vote on Bipartisan Tax Bill with LIHTC Fix Falls Short
Last Thursday, the Senate held a procedural vote on H.R. 7024, the “Tax Relief for American Families and Workers Act of 2024” – the bipartisan, House-passed tax package that includes much-needed Low-Income Housing Tax Credit (LIHTC) program improvements and enhancements.
• Unfortunately, the “cloture” motion to proceed to the bill failed – as expected – by a tally of 48-44 (60 votes needed; 8 Senators did not vote) due to differences over non-housing-related policy matters (such as the size and scope of the federal Child Tax Credit).
What they’re saying: During floor debate, Senate Majority Leader Chuck Schumer (D-NY) supported the bill’s LIHTC provisions, saying, “[T]he housing crisis in America would ease, one of our biggest crises – housing costs, [would ease] by expanding the Low-Income Housing Tax Credit, something I deeply cared about and urged to be put in the bill. I’m glad it’s there.”
In a press statement supporting the bipartisan House passage of H.R. 7024, MBA President and CEO Bob Broeksmit, CMB, previously said, “MBA and its members have long called for enacting tax provisions that address our nation’s housing affordability crisis and the acute shortage of homes for owning and renting. We support this bill, particularly for its meaningful enhancements to the Low-Income Housing Tax Credit (LIHTC) that will produce an estimated 200,000 additional rental units over the next two years.”
• MBA also joined a previous broad coalition letter in support of the bill’s LIHTC provisions here.
Why it matters: A large bipartisan group of Senators has expressed strong support for the LIHTC provisions embedded in H.R. 7024’s affordable housing title. The bill would restore a LIHTC program ceiling increase from 9% to 12.5% for calendar years 2023 through 2025, which would allow states to allocate more credits for affordable housing projects. It would also temporarily lower the Private Activity Bond (PAB) threshold test from 50% to 30% for 4% LIHTC property projects with an issue date before 2026.
What’s next: Since February, MBA’s Mortgage Action Alliance (MAA) members have sent almost 3,000 messages urging the Senate to take a vote on H.R. 7024. A similar procedural vote could come up again later this year, but it is more likely that programmatic LIHTC changes will be folded in as part of a more comprehensive tax policy debate in 2025.
• MBA’s ongoing support for affordable housing programs like the LIHTC will be critical to help maintain momentum for the consideration of a mix of housing supply-related credits – and other key industry priorities – as part of the tax debate next Congress. Along with our coalition partners, MBA will continue to advocate strongly for the enactment of housing affordability solutions.
For more information, please contact Bill Killmer at (202) 557-2736, Ethan Saxon at (202) 557-2913, George Rogers at (202) 557-2797.
MBA Updates Building Generational Wealth Through Homeownership and Affordable Housing White Paper
Last week, MBA released an updated version of the Building Generational Wealth Through Homeownership and Affordable Housing Update white paper.
• The updated white paper highlights MBA’s efforts in advocating for legislation and regulatory actions that promote housing affordability and more options for both renters and homeowners as well as raising awareness and utilizing resources available to improve affordability and homeownership.
Go deeper: Tamara King, MBA’s Vice President of Residential Policy and Strategic Industry Engagement, discussed the latest updates to the white paper and why the industry should get involved in advocacy efforts to close the racial homeownership gap. Watch the MBA Now video here.
To learn more about the white paper and how to get involved, click here.
For more information, please contact Tamara King at (202) 557-2758 or Monique Ellis at (202) 557-2856.
Participate in the Mortgage Action Alliance’s “Advocacy in August” Campaign
MBA’s “Advocacy in August” campaign has begun! Join your fellow industry advocates and MAA members and get involved during the congressional August recess by taking action on current real estate finance policy priorities – and by arranging to meet with elected officials back in their states or districts.
Why it matters: The Advocacy in August campaign is an important political engagement strategy for our industry to help advance key policy and advocacy priorities. Your participation through allows MBA to build and strengthen individual relationships with lawmakers during the traditional congressional August recess.
What’s next: MBA’s Legislative and Political Affairs team will help coordinate in-person and virtual meetings in your elected officials’ home states or districts. Get involved!
For more information, please contact Jamey Lynch at 202-557-2818.
REGISTER: MBA’s Commercial/Multifamily Insurance Conclave 2024
MBA is hosting a Commercial/Multifamily Insurance Conclave 2024 on Oct. 6-8 in Kansas City, Mo.
• This premier event brings together Insurance and Risk professionals from all capital sources to discuss insurance market trends, best practices for addressing and implementing changes in the future, and much more.
Why it matters: Rising property insurance costs and diminishing policy options are increasingly becoming a problem in several states, and insurance requirements are becoming more strict.
What’s next: Register today to secure your seat.
For more information, please contact Jacky Salazar at (202) 557-2746.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely commercial/multifamily and single-family 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:
• Analyzing the Commercial/Multifamily Borrower’s Balance Sheet and REO Schedule – Aug. 27
• Affordable Housing Insights: Understanding Consumers, Buyers, and Uses of Accessory Dwelling Units – Aug. 29
• Finding Opportunities with Distressed CRE in 2024 – Sept. 10
• MAA Quarterly Webinar: 2024 Elections Preview – Sept. 17
• Overview of Commercial Insurance Compliance – Oct. 3
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.
