$10B Hike Proposed for FHA MF Budget

Under President Bush's fiscal year 2005 budget proposal, the Federal Housing Administration would be allotted $10 billion in additional loan commitment authority to keep its multifamily, 203(k) home renovation, reverse mortgage, and condominium loan programs running.The budget proposal provides $35 billion in loan commitment authority for the FHA's General Insurance/Special Risk Insurance Fund, which was forced to shut down temporarily three times since last summer. The latest shutdown ended Feb. 2 thanks to the passage of the fiscal 2004 omnibus appropriations bill, which provided the GI/SRIF with $25 million in loan commitment authority. There are concerns about another shutdown in August or September unless a supplemental appropriations bill includes more loan commitment authority. The president's budget also proposes to reduce the annual insurance premium on multifamily loans from 50 basis points to 45 bps.