REFORMING THE FEDERAL HOUSING ADMINISTRATION AND LIHTC TO ADVANCE AFFORDABLE HOUSING IN NEIGHBORHOODS
WHEREAS, the Federal Housing Administration FHA), through its multi-family and single family
insurance programs has historically provided affordable housing opportunities for the nation's
homeowners and renters; and
WHEREAS, during FY 2002, FHA insured 1,287,375 loans, and in any given year, FHA insured
mortgages make up approximately 15-20 % of the national mortgage market; and
WHEREAS, FHA and the Government National Mortgage Association (GNMA) have made
homeownership possible for almost 30 million families and affordable rental housing available to
another 4.1 million; and
WHEREAS, many cities have been unable to use FHA multifamily insurance programs because
the high cost of housing in their area makes them ineligible; and
WHEREAS, FHA multi-family insurance programs have been hindered by the lack of modern
administrative procedures resulting in significant delays of approvals; and
WHEREAS, FHA insurance programs often require administrative costs and delays that prohibit
developers from expanding homeownership opportunities among low-income families, first time
homebuyers and minorities and stimulating multifamily housing production; and
WHEREAS, FHA procedures often inhibit the application of their insurance programs to smaller
neighborhood housing renovation and rehabilitation program, placing them in a competitive
disadvantage to larger projects and thereby denying these neighborhoods the benefits of creating
affordable housing opportunities; and
WHEREAS, FHA insurance programs are a powerful tool in attracting private investment in the
nation's affordable housing stock; and
WHEREAS, HOPE VI and mixed financial proposals are being stymied by the lack of sufficient
Low Income Housing Tax Credit allocations necessary to accomplish their financing,
NOW THEREFORE BE IT RESOLVED that the U.S. Conference of Mayors calls on the
Congress to pass legislation that would provide FHA greater flexibility to develop new products
and programs to expand homeownership opportunities in underserved areas and spur the
production and preservation of affordable rental housing in neighborhoods; and
BE IT FURTHER RESOLVED that the U.S. Conference of Mayors calls on HUD to preserve
the 203(k) program to rehabilitate and renovate properties with 1-4 family units; and
BE IT FURTHER RESOLVED that FHA reform the Multifamily Accelerated Procedures
(MAP) program to streamline and simplify the approval process for smaller neighborhood
multifamily rehabilitation and new construction projects that currently are placed at a competitive
disadvantage to larger projects; and
BE IT FURTHER RESOLVED that FHA increase its current multifamily limits in high cost
areas to facilitate the construction and rehabilitation of rental properties in those areas; and
BE IT FURTHER RESOLVED that the U.S. Conference of Mayors calls on HUD to work with
the Department of Treasury to increase the authority of LIHTC, above and beyond current levels,
to finance HOPE VI and/or mixed finance projects which provide replacement units for public
housing projects that have been demolished.
©2003 U.S. Conference of Mayors 
