CREF Policy Update: MBA’s FY 2027 White House Budget Summary; MBA Council Meeting Recaps; MAA Action Week in May; more
White House FY 2027 Budget Deep Dive
The Trump administration recently released its Fiscal Year 2027 (FY27) budget proposal. Each year, the President’s budget request, otherwise known as its “wish list,” provides a blueprint for the Administration’s priorities as Congress continues its work on the federal appropriations process for the coming fiscal year.
• Read MBA’s analysis of the President’s budget with details on long-term policy priorities and initiatives that impact the industry, including important IT initiatives.
Go deeper: As expected, the budget highlights several spending reductions and program terminations, including:
• Reducing non-defense discretionary spending by $73 billion (10 percent) from the 2026 enacted level.
• Eliminating programs and “returning State and local responsibilities to their respective governments.”
• The budget also requests $1.5 trillion in total discretionary defense spending, a 44% increase.
Why it matters: Of note, the Administration is requesting $73.5 billion in discretionary budget authority for the Department of Housing and Urban Development, a $10.7 billion cut, or a 13% decrease from its 2026 enacted level. Despite the topline reduction, HUD’s budget includes investments in FHA and Ginnie Mae operations to support their housing finance missions. Specifically of note:
• Funding for project-based rental assistance is proposed with only a 5% cut over FY26, and there is a slight increase for tenant-based vouchers.
• No new activity is projected for the Federal Financing Bank Risk-Share program, effectively winding it down.
• The budget offers no funding for HOME and CDBG programs.
• Also in the budget, there is no new funding for Community Development Financial Institutions (CDFIs), other than $100 million for rural financial assistance.
What’s next: Though the annual release of a President’s budget carries no force of law, it is an important marker of specific spending recommendations from any administration. MBA will continue its engagement with Congress and leaders at the federal housing agencies on our key industry priorities within the FY 2027 appropriations process.
For more information, please contact Megan Booth at (202) 557-2740.
Affordable Council Talks Bond Financing
On Thursday, the Affordable Council hosted Kent Neumann from Tiber Hudson to discuss a new bond structuring solution known as “cash-backed forward structure.” The Council also heard from HUD staff from its San Francisco regional office. Other discussions were on Florida’s Live Local Act, the FHA Chapter 14 MAP Guide working group, and policy updates regarding the President’s 2027 Budget proposal.
Why it matters: The Affordable Council meets monthly to discuss programs and proposals to enhance the development of affordable multifamily housing.
What’s next: At the Council’s next meeting in May, the discussion will focus on ideas to improve LIHTC pricing.
For more information, please contact Megan Booth at (202) 557-2740.
MBA’s Bank Council Convenes for Spring Meeting
On Wednesday, MBA’s Bank Council convened to discuss key implications involving loan workouts, broader economic trends, and the Basel III’s re-proposal implications for bank balance sheet lenders.
• John Sadler and Chrissey Barba of law firm Ballard Spahr provided attendees with an update on common loan workout and modifications prevalent in commercial real estate and multifamily markets today.
• Both presenters also noted that banks are often passing on acquiring non-performing CRE assets from other depositories, with an inclination to let debt funds and private credit participants pursue non-performing assets.
• MBA’s Research staff provided an update to the Council highlighting that despite a strong 2025, delinquencies and vacancy rates continue to climb across some asset classes.
• The Council continues to remain engaged on assessing the implications from the Federal Banking Agencies’ recent capital Proposals, and MBA members are encouraged to join MBA’s Basel III working group.
Why it matters: With 17 percent ($875 billion) of the $5.0 trillion of outstanding commercial mortgages held by lenders and investors scheduled to mature in 2026, loan modifications and workouts continue to remain a prominent topic among bank balance-sheet lenders.
What’s next: MBA’s Basel III working group will continue to meet on a regular basis as we solicit input from our members on the best path forward to ensuring bank capital rules do not unnecessarily curtail bank lending in CRE and multifamily markets.
For more information or to join the Council, please contact John Lammle at (202) 557-2789.
MBA’s New Agency Council has Inaugural Meeting
On Thursday, MBA’s Agency Council had its first meeting. The purpose of the Council is to discuss and develop policy proposals on multifamily finance issues as they relate to Fannie Mae and Freddie Mac (the GSEs) and the Federal Housing Finance Agency. Topics discussed included GSE capacity, the status of build-to-rent projects, and asset management.
Why it matters: The Agency Council will meet six times a year, including an in-person meeting at MBA’s Commercial/Multifamily Convention and Expo in February 2027.
For more information and to join the Agency Council, please contact Megan Booth at (202) 557-2740.
MBA and Rhode Island MBA Urge Providence Mayor to Veto Rent Control Ordinance
On and the Rhode Island Mortgage Bankers Association (RIMBA) sent a letter week to Providence Mayor Brett Smiley, calling on him to oppose a proposed rent control ordinance advanced by City Council, which received a favorable 9-6 preliminary vote April 2nd. The measure would impose 4% annual caps on selected multifamily properties, creating a Rent Regulation Board for adjustments.
Go deeper: While acknowledging housing affordability challenges, the letter warned that rent control reduces rental supply, defers maintenance, and deters investment—making it harder to finance new construction and property rehabilitations. Instead, the associations recommended market-based alternatives: zoning reforms for multifamily/mixed-use development, streamlined permitting, and incentives for rehabbing existing stock. These approaches promote long-term affordability without market distortions.
What’s next: The proposed ordinance requires a second vote, which is scheduled for April 16th. Mayor Smiley has signaled a veto that would require 10 votes to override and MBA and RIMBA will continue to collaborate to support defeat of the measure. They have also pledged collaboration on supply-focused solutions to bolster Providence’s housing market.
For more information, please contact William Kooper (202) 557-2737 or Megan Booth (202) 557- 2740.
MAA Action Week, May 11-15: Sign Up to Run a MAA Enrollment Campaign
From May 11–15, MBA will rally members nationwide to engage with policymakers, share their stories, and help shape the future of real estate finance during MAA Action Week. SIGN UP to lead a campaign at your company or state association, if applicable) and help grow MBA’s FREE grassroots network of industry professionals. Your participation strengthens our collective impact and ensures our voice is heard.
Why it matters: A strong grassroots campaign does more than raise awareness — it builds a lasting advocacy engine that drives progress well beyond Action Week. When companies mobilize their employees for advocacy, participation grows, momentum builds, and policymakers hear directly from the professionals engaged within the CREF sector. With more than 100 organizations joining us last year, 2026 is our moment to set a new benchmark.
• MBA provides ready‑to‑use resources—email templates, social content, active MAA rosters, and more—so participation is a simple and efficient exercise.
What’s next: Let’s make this milestone year truly monumental. Complete our sign-up form, and we will begin preparing your customized campaign materials.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818.
Upcoming MBA CREF Council 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. Visit www.mba.org/yourCREF to find out more. 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 Finance: April 23
• Commercial Council: April 29
• FHA Committee: May 12
• Life Company Council: June 16
• Bank Council: June 18
• Structured Finance Council: June 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, opportunities, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Basics of Commercial Loan Closing and Loan Documentation – May 12
• HUD’s Role in Multifamily Financing – May 20
• Mastering Commercial Insurance Modeling: Key Insights and Applications – May 21
• Understanding Tax-Exempt Private Activity Bonds in Affordable Housing Finance – June 12
• Fundamentals of Commercial Insurance Issues and Problems – July 15
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.
