Industry groups are urging the House and Senate appropriators to include $5 billion in additional commitment authority for the FHA multifamily and health care programs to prevent a possible shutdown of those loan programs.
“Failure to provide the additional commitment authority has the potential to cause significant disruptions to financing for apartments, hospitals and health care facilities that serve millions of Americans,” according to a joint letter 12 trade groups.
Congress is currently under pressure to pass a continuing resolution to fund federal government operations through Sept. 30. Failure to pass a continuing resolution by March 27 could lead to a government shutdown.
Senate Appropriations Committee leaders released a draft of the continuing resolution Monday evening. It does not include the additional commitment authority for the Federal Housing Administration multifamily and health care programs.
“The additional commitment authority is critical at a time when rental housing is playing a historically larger role in the overall housing market and the number of Americans in rental housing is at the highest level in decades,” according to the Mortgage Bankers Association.
“Not funding these programs would disrupt financing for rental housing and health care properties,” said MBA chairman Debra Still.
The Senate continuing resolution draft does include a provision that will benefit Rural Housing Service lenders and the communities they serve.
Under the continuing funding resolution, communities that are currently eligible for
Without this provision, the Department of Agriculture would have to use the most recent 2010 census data to determine eligible RHS areas and over 900 communities would lose eligibility.
The continuing resolution provision continues the use of the 2000 census to maintain the status quo.
The lenders originated 145,100 in RHS loans in fiscal year 2012 totaling $19.2 billion.
