Mortgage bankers are calling for swift passage of legislation that would boost the loan limit on multifamily mortgages secured by properties with elevators and insured by the Federal Housing Administration.
U.S. Rep. Anthony Weiner (D-N.Y.) and Rep. Gary Miller (R-Calif.) introduced H.R.3527, the FHA Multifamily Loan Limit Adjustment Act of 2009, on Friday, the Mortgage Bankers Association announced today.
The bill would increase FHA’s limit on multifamily properties with elevators that are located in high-cost areas like Los Angeles and New York.
The trade group claims multifamily buildings of between eight and 24 floors cost 45 percent more to construct than non-elevator buildings. But the difference in FHA financing for the two types of structures is only 10 percent.
“H.R. 3527 would establish a 50 percent differential between elevator and non-elevator in each FHA insurance program and each unit size,” the statement said.
MBA projects that passage of the bill would prompt construction this year on $3 billion in multifamily properties. The number of related rental housing units are estimated at 11,000.