CREF Policy Update: MBA, Housing Solutions Coalition Send Post-Presidential Debate Missive Opposing Rent Control
MBA, Housing Solutions Coalition Send Post-Presidential Debate Missive Opposing Rent Control
Recently, MBA and the other housing trade groups that make up the Housing Solutions Coalition sent the following press statement in response to President Joe Biden’s mention of capping rents during last Thursday night’s presidential debate:
“Decades of academic research from across the United States and around the world clearly show that rent caps – more commonly known as rent control – reduce the supply of available housing and fail to target those renters who need help the most while simultaneously harming other residents and the communities they reside in. Despite President Biden’s mention of rent caps during the debate, he and his policy experts know that the real reason so many Americans struggle with housing costs is because we need to build more housing. There is no debate. Rent caps hurt renters and communities.”
Why it matters: Rent control is a failed housing policy that limits housing supply and harms both the large-scale and small-scale housing market broadly. MBA has pushed back vehemently against federal and state rent control proposals that have popped up with increased frequency in recent years.
• The Housing Solutions Coalition provides tools, infrastructure, and leverages resources to develop campaigns to push back and offer proven, effective alternative solutions on rent control policies and proposals where they arise.
What’s next: The Coalition will continue to work together to fight rent control initiatives through coordination at the federal level and with local affiliates and state associations.
For more information, please contact Mike Flood at (202) 557-2745.
HUD Posts Multifamily MAP Guide Changes to “Drafting Table” For Comment
Last Monday, the Office of Multifamily Programs at the Department of Housing and Urban Development (HUD) posted revisions to the Multifamily Accelerated Processing (MAP) Guide.
• Chapter 1, Chapter 2, Appendix 2, Chapter 10, Chapter 15, and Appendix 15 are on the Multifamily Drafting Table for comment. The deadline for responses is July 31, 2024.
Why it matters: The MAP Guide is designed to establish uniform national standards for approved lenders to prepare, process, and submit loan applications for Federal Housing Administration (FHA) multifamily mortgage insurance. Such changes may have a material effect on MBA members who apply for HUD mortgage insurance.
• Follow the instructions in the MAP Guide Response Workbook to provide comments and email the worksheet to hsng_mf_2024mapguide-draftingsuggestions@hud.gov. The Excel workbook contains a Tab for each chapter.
What’s next: MBA will work through its FHA MAP committees and councils to provide feedback to HUD’s office of Multifamily Programs by the July 31, 2024, deadline.
For more information, please contact Megan Booth at (202) 557-2740.
MBA Joins Coalition Letter Supporting Office Conversions Legislation
Recently, MBA and major real estate trade groups sent a joint letter supporting bipartisan House office conversion legislation to be introduced by Reps. Mike Carey (R-OH) and Jimmy Gomez (D-CA).
• The bill, to be known as the Revitalizing Downtowns and Main Streets Act (RDMSA), would create a new and temporary 20 percent tax credit for qualified property conversion expenditures. The measure aims to modernize U.S. real estate, create new and affordable housing, and strengthen local communities through a market-based tax incentive for converting older commercial properties to residential use.
Go deeper: The specific tax credit proposal is modeled after the historic rehabilitation credit. Total credit authority would be limited to $15 billion, and state housing finance agencies would distribute the credit based on allocation plans that consider factors such as financial feasibility and the extent to which the conversion will create affordable housing and support economic revitalization and small businesses in the surrounding area.
• Larger credits would be available for projects in rural areas, low-income census tracts, and economically distressed areas. As proposed, the credit would expire at the end of 2027.
Why it matters: By establishing a temporary tax credit for commercial-to-residential property conversions, the bill has the potential to help spur the development of affordable housing and reduce the number of outdated commercial buildings that are weighing on the wellbeing of real estate markets and local tax bases.
What’s next: MBA will work with our coalition partners to advocate for the bill’s consideration upon the bill’s formal introduction – in addition to our other key commercial/multifamily tax policy priorities – by the House Ways and Means and Senate Finance Committees. A major congressional tax policy debate is expected in 2025.
For more information, please contact Bill Killmer at (202) 557-2736.
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:
• Loan Servicing Transfers that Deliver Results – July 11
• Adding Reverse Mortgages to Your Business Line: The Roadmap – July 23
• Rethink Everything: You “Know” To Be A Next Gen Loan Officer – A Deeper Dive With the Writers & Experts Webinar Series: Advocacy – Aug. 1
• What Value Will AI Bring to the Mortgage Industry? – Aug. 13
• Benchmarking & Performance Ratios Mortgage Bankers Must Know – Aug. 20
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.
