2003 Adopted Resolutions
71st Annual Meeting
Denver

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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.