CREF Policy Update Feb. 22: FHFA Announces Multifamily Property Insurance Symposium

FHFA Announces Multifamily Property Insurance Symposium

Last Monday at #MBACREF24 in San Diego, the Federal Housing Finance Agency (FHFA) announced that it will host a Multifamily Property Insurance Symposium on March 13, 2024.

• The meeting is intended to promote more dialogue around the rising costs and limited availability of property insurance in the multifamily market. Attendees will include representatives from Fannie Mae and Freddie Mac (the GSEs), the Department of Housing and Urban Development (HUD), insurance experts, and multifamily lenders and borrowers. The meeting will be the second session in a series of insurance symposiums hosted by FHFA.    

Why it matters: Property premiums in the U.S. increased 14% in the third quarter of 2023, the 24th consecutive quarter of premium increases. The increases are driven by continued losses, rising costs in reinsurance, and limited new capacity from insurers. However, even with higher premiums, insurance (and re-insurance) companies still face significant financial losses and thus have withdrawn many of their offerings in high-risk areas.

What’s next: The in-person event will be hosted in Washington, D.C. on a first come, first-served basis with an option to attend virtually. To register, please email FHFA at: ​

For more information, please contact Stephanie Milner at (202) 557-2747.

House Fails to Move to Debate on SALT “Marriage Penalty” Bill

Last Wednesday, the full U.S. House considered a procedural motion to move to debate on H.R. 7160, a bill offered by New York state Republicans that would double the maximum amount of the deduction for state and local taxes (“SALT”) for married couples against their Adjusted Gross Income – thus eliminating the tax effect known as the SALT “marriage penalty.”

• The vote on the underlying House rule (H.Res. 994) to advance to a full House floor debate on H.R. 7160 failed by a margin of 195 to 225.

Why it matters: State and local income taxes – including property taxes – generally place a greater burden on homebuyers in high-tax burden states. Some real estate groups (and many “blue state” Members of Congress) believe the $10,000 SALT deduction cap against federal income (imposed in 2017) dampens the demand for property in their states – particularly in high-cost regions and coastal areas.

What’s next: This failed procedural vote likely kills any momentum to advance SALT-related changes in either the House or Senate this year. MBA will continue to closely monitor any legislative movement on all housing and real estate-related tax provisions – such as the favorable Low Income Housing Tax Credit (LIHTC) enhancements within the recent House-passed, bipartisan tax package (H.R. 7024) – for the duration of the 118th Congress.

For more information, please contact Rachel Kelley at (202) 557-2816 or Bill Killmer at (202) 557-2736.

#MBACREF24: 20% of Commercial and Multifamily Mortgage Balances Mature in 2024

Twenty percent ($929 billion) of the $4.7 trillion of outstanding commercial mortgages held by lenders and investors will mature in 2024, a 28% increase from the $729 billion that matured in 2023, according to the Mortgage Bankers Association’s 2023 Commercial Real Estate Survey of Loan Maturity Volumes, released this week at the 2024 Commercial/Multifamily Finance Convention and Expo.

Why it matters: MBA’s 2023 loan maturities data was released at CREF24, along with the following reports: Q4 2023 Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations and 2023 Year-End Commercial/Multifamily Servicer Rankings.

Go deeper: In late March, MBA will release its Annual Origination Summation report for 2023 with final origination figures for the year.

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

#MBACREF24: Pinnacle Financial Partners and Walker & Dunlop Named 2024 Diversity, Equity, and Inclusion Commercial/Multifamily Leadership Award Winners

Last week at #MBACREF24, MBA announced that Pinnacle Financial Partners and Walker & Dunlop have been recognized as 2024 Diversity, Equity, and Inclusion (DEI) Commercial/Multifamily Leadership Award recipients.

Go deeper: For more information on PFP’s award-winning efforts, click here. Click here for information on Walker & Dunlop’s DEI efforts.

What’s next: For more information on MBA’s DEI Leadership Awards, click here.

For more information, please contact Amber Lawrence at (202) 557-2766.

MBA and NYMBA Urge State Legislative Leaders to Support Governor Hochul’s Affordable Rental Housing Agenda

Recently, MBA and the New York MBA (NYMBA) conveyed in a letter to New York’s legislative leaders support for the Governor Hochul’s proposed agenda for a much-needed expansion of affordable rental housing in the state. Specifically, the letter supported the Governor’s proposals to:

• Extend the deadline to 2031 for the expired 421a tax abatement program and for the Legislature to create a long term replacement;
• Authorize New York City to legalize existing basement and cellar apartments;
• Adjust the cap on the residential floor area ratio to enable NYC to create more affordable rental housing; and
• Provide tax incentives for office conversions.

Why it matters: The Legislature is currently conducting budget hearings, and it is vital to support industry issues during this process.

What’s next The Legislature will propose its own version of a Fiscal Year 2025 budget before the statutory due date for a new state budget on April 1st. The differences between legislative and gubernatorial views are often where industry issues have surfaced. MBA will continue to work with the NYMBA and other industry partners to support member interests.

For more information, please contact William Kooper (202) 557-2737 or Stephanie Milner (202) 557-2747

REGISTER: MBA’s National Advocacy Conference on March 19-20; Separate CREF Track!

Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry – including a dedicated CREF track exclusively for our commercial/multifamily members. An exclusive reception will be held on Tuesday, March 19, at the National Museum of Women in the Arts. Lend your voice to our efforts and bring your expertise and experiences to the table.

Check out MBA’s group passes pricing.

Why it matters: Your participation at NAC ensures that members of the 118th Congress and other policymakers understand how proposed legislation affects your employees, your end users, and the communities you (and they) serve.

What’s next: MBA will continue to advocate on issues that impact the commercial/multifamily sector of the real estate finance industry.

For more information, please contact Jamey Lynch, AMP, at (202) 557-2818.

REGISTER: MBA’s State and Local Workshop on March 18-19

Join us in Washington, D.C. the day before the National Advocacy Conference begins to collaborate with industry peers on shared challenges and priorities and receive actionable advice to grow your state or local association’s member base.

Why it matters: In today’s challenging market, it’s more important than ever that state and local associations are helping members not just survive but grow.

What’s next: Take advantage of savings and maximize your impact when you register for both the State and Local Workshop and the National Advocacy Conference.

For more information, please contact Anthony Siller at (202) 557-2944.

Register: MBA’s mPact Summit on April 4 in Texas

Meet us in Texas for a full day of career development and networking on Thursday, April 4, 2024.

Back by popular demand, this event is built by – and for – young professionals in the real estate industry who are focused on helping you get to the next level.

Why it matters: Event topics include developing leadership skills, learning how to navigate your career, and building and practicing networking skills. You don’t want to miss this opportunity.

What’s next: Early bird registration ends on Feb. 29. Register now and save!

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 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:

The Role of Public-Private Partnerships for Sustainable Affordable Housing and Community Development – March 5

Private Credit Finance 201: A Deep Dive into Debt Funds and Their Impact to Commercial Real Estate Lending – March 6

A Crisis of Identity in Lending – Best Practices for Securing the Borrower Experience – March 12

Increasing Your Overall Productivity Through Special Purpose Credit Programs (SPCP) – March 13

Who Are Today’s Borrowers? A Look at the Lending Preferences and Expectations of Today’s Consumers – March 14

Making Sense of Multifamily Finance – March 14

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

For any questions, please contacDavid Upbin at (202) 557-2931.