NCSHA Washington Report | November 1, 2024

January 20, 2026

Dear President ________:

Thank you for establishing housing affordability as one of your highest priorities in the first year of your term, and congratulations on the steps you have taken so far to reduce housing costs.

Shortly after your victory was determined, you said you had gotten the message from voters in the states that tipped the balance in your favor that they, like millions of Americans everywhere, want national leadership on this critical challenge.

You committed during the presidential transition to form a “housing cabinet,” chaired by the vice president-elect, that would convene the senior leadership of every federal agency on a regular basis to report — to you and the public — on what they were accomplishing to make housing more affordable.

Many agencies seized opportunities as you directed to reform and reduce federal regulations that make building, buying, financing, and owning homes and apartment properties more expensive than they need to be. Some pushed the envelope further, finding ways to reward local jurisdictions that remove their own unnecessary regulatory barriers with more advantageous federal funding.

And you broke new ground in centering housing as a cross-cutting priority for your White House staff. Their execution of your trade, energy, and industrial policies intentionally included new federal commitments to drive research, innovation, and workforce development in the housing sector of our economy. Where actions in those areas inadvertently made housing more expensive, you adjusted the policy.

Your outreach to leaders in both parties in Congress ensured that substantial incentives for affordable home building, apartment construction, mortgage financing, and home purchases are included in the big tax bill you recently signed into law. And while our nation’s long-term fiscal path seems to rule out large new appropriations, your insistence that proven HUD and USDA programs be funded has helped increase their levels.

Your housing policy has been fundamentally both ambitious and pragmatic. While you have listened to the concerns of all stakeholders, your administration has rejected highly ideological proposals, which in a closely divided Washington only waste precious political capital and split bipartisan advocacy alliances, such as privatizing the housing government enterprises, promoting forms of rent control, and interfering with the work of the Federal Reserve.

Most of all, you have communicated clearly that, while the federal government can and must do more than it ever has to cut housing costs, state and local governments have the same responsibility. Your bully pulpit leadership and elevation of exemplary state and local efforts, alongside private-sector innovation, have brought much-needed attention to the many good ideas that are making a difference around the country.

President ________, you are off to a terrific start on housing. We look forward to more progress in your second year.

Stockton Williams | Executive Director

In This Issue

• NCSHA Welcomes New Members
• NCSHA Urges FHFA to Increase GSE Multifamily Affordable Housing Goals
• HUD Announces $72 Million for Youth Homelessness Assistance
• FHFA Announces New GSE Policies on Appraisals, Loan Repurchase Alternatives, Pricing Notifications
• NCSHA in the News
• Looking Ahead

NCSHA Welcomes New Members
NCSHA has welcomed these organizations as Affiliate members in October: Baird Holm LLP; Exygy – Bloom Housing; Interior Resources USA, LLC; Inspective; and LoanCare. If you work with a partner who may be interested in becoming a member, please contact Phaedra Stoger.

NCSHA Urges FHFA to Increase GSE Multifamily Affordable Housing Goals
On Monday, NCSHA submitted comments in response to the Federal Housing Finance Agency’s (FHFA) proposed 2025 – 2027 affordable housing goals for Fannie Mae and Freddie Mac. In the letter, NCSHA urged FHFA to consider increasing from the current proposal of 61 percent to 65 percent the low-income multifamily housing goal requiring a portion of rental units financed by each firm to be affordable to households earning at or below 80 percent of area median income. The letter noted both firms have substantially exceeded the 61 percent goal in recent years, including in 2023 when borrowing costs were high, suggesting that they are capable of meeting higher thresholds. NCSHA also expressed support for FHFA’s proposal to maintain strong single-family goals with added flexibilities.

HUD Announces $72 Million for Youth Homelessness Assistance
On Tuesday, the U.S. Department of Housing and Urban Development announced awards totaling $72 million through its Youth Homelessness Demonstration Program (YHDP) for activities addressing youth homelessness, including rental assistance, rapid rehousing, and permanent supportive and transitional housing. In addition to a number of local governments and nonprofits, the Idaho Housing and Finance Association, which also administers a portion of the state’s Continuum of Care funding, received $3.8 million in this most recent round of YHDP awards. Read the announcement to learn more.

FHFA Announces New GSE Policies on Appraisals, Loan Repurchase Alternatives, Pricing Notifications
Speaking at the Mortgage Bankers Association’s Annual Convention on Monday, FHFA Deputy Director Naa Awaa Tagoe announced several changes to Fannie Mae and Freddie Mac (the Enterprises) policies designed to reduce costs for borrowers and lenders, reflecting feedback FHFA has received from private- and public-sector stakeholders. Both Enterprises will expand eligibility for appraisal waivers and inspection-based appraisal waivers to allow more first-time and low- and moderate-income home buyers to benefit. Specifically, the maximum loan-to-value (LTV) ratio of purchase loans eligible for appraisal waivers will increase from 80 to 90 percent, and the maximum LTV ratio of loans eligible for inspection-based appraisal waivers will increase from 80 to 97 percent.

Moving forward, the Enterprises will provide at least 60 days’ notice before implementing any increase to their guarantee fees that is more than one basis point. Further, Freddie Mac now will allow all its approved lenders to participate in a pilot program that permits lenders to pay a fee rather than repurchase a mortgage loan that has a defect but is otherwise performing. FHFA’s press release includes more information on the new policies.

NCSHA in the News
HousingWire, 10.24.24, Mortgage lenders need to shore up training on 2025 home buyer incentives

Looking Ahead

Legislative and Regulatory Activities

• November 1 | Comments Due to NCSHA | HUD Multifamily Asset Management and Project Servicing Handbook
• November 18 | Comments Due | HUD Multifamily Asset Management and Project Servicing Handbook
• December 13 | Comments Due to NCSHA | FHFA Proposed Rule on FHLB Governance
• February TBD | Comments Due | FHFA Proposed Rule on FHLB Governance

NCSHA, State HFA, and Industry Events

• November 13 | Maine Affordable Housing Coalition: 2024 Housing Policy Conference | Portland, ME
  Jennifer Schwartz will speak at this event.
• November 14 | Vermont Statewide Housing Conference | Burlington, VT
  Stockton Williams will speak at this event.
• November 15 | Women’s Affordable Housing Network Quarterly Policy Update | Virtual
  Jennifer Schwartz will speak at this event.
• November 21 – 22 | NAHB Mortgage Roundtable | New York, NY
  Stockton Williams will participate in this event.
• December 4 | National Housing Conference’s Solutions for Affordable Housing Conference | Washington, DC, and Virtual
  Stockton Williams will participate in this event.
• January 12 – 17 | NCSHA’s HFA Institute 2025 | Washington, DC