CREF Policy Update: GSEs’ Low-Income-Housing Tax Credit (LIHTC) Investment Cap Doubles
GSEs’ Low-Income-Housing Tax Credit (LIHTC) Investment Cap Doubles
Last Tuesday, FHFA announced it is doubling the GSEs’ cap on LIHTC investment to $2 billion per company per year.
There will continue to be restrictions in place to ensure that half of the money invested must be in projects that have difficulty attracting investors, and a minimum of twenty percent of that half will be Duty to Serve Rural Communities.
H.R. 1 (now Public Law 119-21) made durable enhancements to the LIHTC program, e.g., by providing a permanent 12 percent increase in 9% credit authority, while permanently lowering the bond financing test from 50 to 25 percent.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “The LIHTC program is the federal government’s most successful tool to support the construction and rehabilitation of housing for low- and moderate-income households. FHFA’s doubling of the GSEs’ cap on LIHTC investment to $2 billion comes on the heels of program improvements included in H.R. 1 (now Public Law 119-21), both of which will help to increase rental housing supply.”
Why it matters: The LIHTC program continues to provide a critical source of funding for the preservation and development of affordable rental housing.
What’s next: MBA continues to engage the Administration on policy and regulatory issues related to the production of affordable rental housing, including LIHTC.
For more information or to join MBA’s LIHTC Committee, please contact Megan Booth at 202-557-2740.
REMINDER: Banking Regulators Request Comments on Reducing Regulatory Burdens
On July 21, the Federal Banking Agencies announced they are seeking input from industry on ways to reduce regulatory burdens. Very rarely is the industry offered the opportunity to comment broadly on the entire bank regulatory framework.
• MBA would like to take full advantage of this unique opportunity to help regulators understand areas where changes to the current rules would eliminate outdated, unnecessary, or unduly burdensome regulatory requirements.
• Final comments are due to the Agencies by Oct. 23.
Why it matters: Regulatory issues, like capital requirements and the Community Reinvestment Act, have a large impact on day-to-day business operations.
What’s next: MBA will compile feedback from our members to guide our comment letter.
For more information, please contact John Lammle at (202) 557-2789.
Private Credit Finance Council: Hosts “Perspectives from the Field”
MBA’s Private Credit Finance Council will host a session focused on foundational trends and developments in the private credit market. Designed to provide insights for all levels of experience, from early-career professionals to senior-level experts; it will explore the fundamentals of direct lending, private credit funds, and the broader non-bank lending landscape.
• Date: Tuesday, Aug. 27 | Time: 1:00 PM ET | Format: Virtual
• An introductory session, featuring insights from council members and emerging voices shaping the future of direct lending and private markets.
• Council leadership and guest speakers will offer perspectives on how the private credit space is responding to market shifts, regulatory updates, and investor demand.
Why it matters: The Private Credit Finance Council brings together professionals active in the direct lending and private capital markets, creating a valuable forum to learn, share insights, and stay connected to emerging trends.
What’s next: Visit the Councils & Committees page to learn more and get involved.
For questions or more information, please contact Tonya Wright at (202) 557-2846.
Upcoming MBA CREF Councils and Committee Meetings
MBA’s CREF Councils and Committees are a key way to connect to everything MBA has to offer around policy, advocacy, market intelligence and research, education, and networking. Councils and Committees are built around specific capital sources and serve as an opportunity for you to join other commercial real estate finance professionals to hear from experts, discuss opportunities and challenges, and connect with peers.
Upcoming virtual meetings include:
• Private Credit Council: Aug. 21
• Commercial Council: Aug. 26
• Life Company Council: Sept. 16
• Servicer Council: Sept. 18
• Bank Council: Sept. 24
For more information, click on the links above and/or contact Kelli Burke at (202) 557- 2742.
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 – all complimentary to MBA members:
• Using Ordinance and Law Insurance to Protect Your Property and Business Recovery – Aug. 27
• Trends in Commercial Non-Bank Lending: Evolving Strategies & Creating Operational Advantages – Sept. 9
• Leveraging Inspection Networks: Ensuring Compliance Across Large, Geographically Disparate Portfolios – Sept. 17
• Fundamentals of Commercial Insurance Issues and Problems – Sept. 18
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For more information, please contact David Upbin at (202) 557-2931.
