Under an early warning system secured by NAA/NMHC and others, FHA reports that it is close to exhausting its multifamily housing credit subsidy for FY 2010. Congress implemented legislation requiring FHA to notify lawmakers when it was approaching 75 percent of its allowable commitments after the agency required emergency Congressional action to keep its multifamily housing lending programs operational in FY 2004-2006. This is the first use of the early warning system, which is designed to provide Congress with the time needed to provide supplemental authorization.
FHA reports that it has closed $7 billion in multifamily (and health care) financing to date in FY 2010 and has a pipeline of applications for an additional $19 billion, $11 billion beyond its FY 2010 authority level. NAA/NMHC are closely monitoring the situation and will work with HUD and Congress to seek the additional authority needed to keep the programs operational until the fiscal year ends on Sept. 30.