Bipartisan Push To Boost Affordable Housing
The bipartisan Housing Affordability Act would let the FHA use a construction-cost index instead of CPI to set loan limits
Reps. Monica De La Cruz (R-TX) and Ritchie Torres (D-NY) have introduced the bipartisan Housing Affordability Act (H.R. 6132), a measure drafted to amend the National Housing Act and update existing multifamily loan limits to accurately adjust for modern expenses, including construction costs for new buildings.
"Access to affordable housing is one of the most prevalent obstacles for South Texas families,” said Rep. De La Cruz. “The bipartisan Housing Affordability Act addresses these challenges by making critical updates to outdated loan limits, which will support more construction of multifamily housing. I will continue to prioritize efforts that expand the housing supply and allow more Texans to achieve the dream of homeownership."
The bipartisan Housing Affordability Act amends the National Housing Act to update statutory loan limits from the inflationary adjustment index from the Consumer Price Index (CPI) to the Price Deflator Index of Multifamily Residential Units Under Construction. H.R. 6132 will allow the Federal Housing Administration (FHA) to use an index that more accurately measures construction costs and ensures statutory limits reflect the actual expense of building, making it financially possible to construct new housing.
"Updating FHA’s multifamily loan limits is a major step Congress can take to jumpstart affordable housing supply,” said Rep. Torres. “Communities like the Bronx are being squeezed by outdated federal rules that make it harder — and often impossible — to finance new apartments. I’m proud to introduce this bipartisan, bicameral bill with Congresswoman Monica De La Cruz and our Senate partners to ensure the federal government finally aligns its financing tools with the real cost of construction. Together, we can unlock new development, expand the supply of affordable homes, and deliver meaningful relief for families across the country."
H.R. 6132 has received support from trade groups, including the Mortgage Bankers Association (MBA), as the measure helps remove regulatory barriers that hold back housing production.
Legislative and Political Affairs, MBA
“MBA has long called for updated reforms to the Federal Housing Administration’s multifamily insurance programs. We support the introduction of the Housing Affordability Act and commend Representatives Monica De La Cruz and Ritchie Torres for leading the charge on these long-overdue updates,” said Bill Killmer, senior vice president of legislative and political affairs at the MBA. “This important legislation would help to remove unintentional and outdated regulatory barriers that constrain and delay workforce housing development across the country.”