GOP Accepts Low-Income Housing Loan Study 

During debate over the bill that would end the GSEs’ affordable housing goals (HR 1226), Republicans accepted an amendment from Rep. Al Green (D-TX) that would call on the GSEs’ regulator (FHFA) to conduct a study within six months of the legislation being enacted to determine the extent to which the act has reduced investments by the firms in multifamily housing and other loans (i.e., rural and low-income) and to make recommendations to Congress on how to improve mortgage credit to those areas.

NAA/NMHC are also closely watching an amendment offered, but withdrawn, by Rep. Carolyn Maloney (D-NY) designed to prevent Fannie and Freddie from investing in deals like Tishman-Speyer’s Peter Cooper Village/Stuyvesant Town apartments transaction.

Her amendment would have prevented the enterprises from investing in any deal where current rental income is insufficient to cover debt service. Rep. David Schweikert (R-AZ) pointed out that, as written, it could create a lot of unintended consequences for tax credit projects, properties built in phases and mixed-income projects. Maloney withdrew her amendment but is expected to work with Rep. Schweikert to bring a revised version to the full committee when it considers the bill.

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