With work complete on the financial reform measure, lawmakers are turning their attention to Government-Sponsored Enterprise (GSE) reform and the future of housing finance. On Aug. 17, the Obama Administration convened a high-level conference on the future of housing finance. NAA/NMHC were among the select stakeholders invited to participate. The meeting was co-hosted by Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan and included senior staff of the Treasury Department, HUD and the National Economic Council.
NAA/NMHC have been active on this issue since the GSEs were put into conservatorship back in 2008. Through Congressional testimony, meetings with the Treasury Secretary and official comments, NAA/NMHC have been working hard to ensure that multifamily is not lost amid the giant shadow cast by the single-family meltdown.
In an indication that the efforts are having an effect, a common theme in the panel discussions was that housing finance isn’t just about ownership, it’s also about rental housing. In fact, a number of panelists during both of the main panels reiterated NAA/NMHC’s calls for a more balanced housing policy. That sentiment is a long way from when NAA/NMHC started talking about a balanced housing policy nearly 10 years ago, when multifamily was hardly on the radar of most policymakers.
Prior to the event, NAA/NMHC and the American Seniors Housing Association (ASHA) submitted extensive comments to the Treasury Department and HUD on the topic. The comments urged policymakers to undertake a deliberate, thoughtful and inclusive transition to a new housing finance system.
The comments also highlighted the fact that unlike single-family lending, the GSEs’ multifamily lending was well underwritten and did not contribute to the housing crisis. In addition to answering the seven questions posed by Treasury/HUD, NAA/NMHC also provided an overview outlining nine key principles for the transition from the current GSEs to any new system. Among other things, the comments emphasized the need for a federally backed credit facility at all times, not just during periods of market dislocation.
The comments noted that the GSEs should be reduced in size but not eliminated or nationalized and that private capital should fully participate in a reconfigured system. The full comments are available at
www.naahq.org/governmentaffairs.
In related news, Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, has announced that his committee will conduct hearings on the topic this month. Despite this increased attention, legislation is not anticipated to be introduced until the next Congress convenes in 2011, and most observers agree that a final solution to the GSE/housing finance reform problem could take years to implement. NAA/NMHC will continue to work with the Administration and lawmakers to ensure that they understand the apartment industry’s unique needs.