File: 
FINAL Industry letter of support CA (2).pdf

Summary

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    June 23, 2010

    The Honorable John W. Olver, Chairman
    Subcommittee on Transportation, Housing and Urban Development, and Related Agencies
    Committee on Appropriations
    United States House of Representatives
    Washington, D.C. 20515

    Dear Mr. Chairman,

    Recently, the Federal Housing Administration (FHA) notified Congress that it had exceeded 75
    percent of its commitment authority to insure mortgages under the General Insurance/Special
    Risk Insurance (GI/SRI) Fund for multifamily rental and health care facilities. FHA
    Commissioner David Stevens further warned that without an additional $5 billion in commitment
    authority, the agency’s current limitation would be fully exhausted by late August or September.

    On behalf of our organizations, we urge Congress to act expeditiously to provide FHA with at least the additional $5 billion of commitment authority it is seeking. Failure to do so before Congress recesses this summer will cause significant disruptions to financing for apartment, hospital, and health care facilities that serve millions of Americans.

    During a period of significant turmoil in the credit markets, FHA’s multifamily programs are providing needed stability and liquidity for project development and rehabilitation, acquisition, and recapitalization. In addition, FHA mortgage insurance is critical to the preservation of much-needed affordable housing. Even a short suspension of these important programs will negatively impact the availability of affordable credit and could result in some projects losing subsidy funds or being delayed so long that the projects become infeasible.

    A shut-down of the programs will hurt our nation’s economy just as we are beginning to see signs of a recovery. The National Association of Home Builders estimates that this additional authority will fund as many as 40,000 units, leverage $2.2 million in wages, and nearly 50,000 jobs.

    We thank you for your attention to this issue and stand ready to work with you on passage of legislation to keep FHA’s multifamily programs operating through the fiscal year.

    Sincerely,

    American Association of Homes and Services for the Aging

    American Health Care Association

    American Hospital Association

    American Seniors Housing Association

    Coalition for Senior Healthcare Reform

    Council for Affordable Rural Housing

    Committee on Healthcare Financing

    Housing Partnership Network

    Institute of Real Estate Management

    Institute for Responsible Housing Preservation

    Mortgage Bankers Association

    National Apartment Association

    National Affordable Housing Management Association

    National Association of Affordable Housing Lenders

    National Association of Home Builders

    National Association of Realtors

    National Council of State Housing Agencies

    National Leased Housing Association

    National Multi Housing Council

    New York Housing Coalition

    Stewards of Affordable Housing for the Future

    Volunteers of America