Impact of New FHA Rules on Rental Housing Production
10/04/10
The Federal Housing Administration (FHA) mortgage insurance program—in line with what one would think is its historical New Deal mandate—was the only game in town that kept multifamily construction alive during the worst of the economic crisis in 2009 as banks shut down lending. Alas, it may not play such a role for much longer, it is suggested, as more stringent rules have recently been imposed that will make it harder for developers to use the program.The Federal Housing Administration (FHA) mortgage insurance program—in line with what one would think is its historical New Deal mandate—was the only game in town that kept multifamily construction alive during the worst of the economic crisis in 2009 as banks shut down lending. Alas, it may not play such a role for much longer, it is suggested, as more stringent rules have recently been imposed that will make it harder for developers to use the program…
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