Responding to recent housing industry analyst reports that criticized a decline in the construction of affordable, quality rental housing across the country, the Federal Housing Administration (FHA) last week announced a multifamily insurance rate reduction. This may be the incentive real estate developers need to renovate and build housing that more low- and moderate-income households can afford. Department of Housing and Urban Development (HUD) Secretary Julián Castro announced the plan on Jan. 29 during a visit to an affordable housing complex in Columbus, Ohio. According to the FHA, most of the nation’s affordable housing stock was built prior to 1980, and each year, the U.S. loses more than 300,000 affordable housing units. At the same time, rents have steadily risen since 2000, while the number of renters who need affordable housing has increased. Upping the incentives for renovations and new units The FHA’s premium reductions are intended to help developers...
- Last week the Federal Housing Administration (FHA) announced a multifamily insurance rate reduction to incentivize the development and renovation of quality affordable housing.
- The decision comes in response to housing industry reports criticizing the lack of affordable units combined with rising rent prices across the country.
- The rate reductions are expected to spur the rehabilitation of 12,000 units nationally and benefit 40,000 families over the next three years.