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MBA Releases White Paper on Affordable Rental Housing and Need for Holistic Policy Solutions

WASHINGTON, D.C. (December 16, 2015) – The Mortgage Bankers Association (MBA) today released a white paper outlining the importance of – and recommendations to expand – affordable rental housing. MBA convened a Task Force of leaders in the commercial/multifamily finance industry to study the range of issues that surround affordable rental housing and recommend steps to enhance its availability.

“The number of American households who rent their homes stands at an all-time high,” said Task Force Chairman Hugh Frater, Chairman and former CEO of Berkadia, one of the nation’s largest multifamily lenders. “With a quarter of renter households paying half of their incomes on housing, the need to expand the availability of affordable rental housing has rarely been greater.”

“Demographic changes point to a massive wave of household formation over the next decade. With between 3 and 6 million additional renter households expected, the demand for affordable rental housing is only expected to grow,” said David H. Stevens, CMB, President and CEO of MBA. “Affordable, stable housing contributes to a sense of housing security that can have far reaching impacts on communities. I commend the members of the MBA Task Force for their holistic approach. MBA will continue to play a leading role to promote housing that is affordable and sustainable.”

The white paper emphasizes that the availability of affordable rental housing must be an essential policy goal, and recommends the following:

Our Nation’s housing policy should support new construction, preservation of existing housing stock, and demand-side assistance – all of which play a vital role in ensuring access to quality, affordable rental housing.

Private capital should be used and attracted wherever and whenever possible to increase the supply of housing, while recognizing that a government role is necessary for targeted affordable rental housing and to ensure liquidity.

Existing, proven programs should be enhanced where they have been effective, and enhancements to programs must take a holistic approach that addresses:

the development of new and the rehabilitation of existing affordable rental housing, including attracting equity investments to rental housing;

the debt financing available for affordable rental housing where various capital sources can play greater roles; and

the demand for rental housing on the part of households of modest means, but especially for low- and very low-income families who would rely substantially on housing programs.

MBA’s Affordable Rental Housing Task Force members include Hugh Frater, who served as Task Force Chair, along with Mark Beisler as Vice Chair, MBA Chairman-Elect Rodrigo Lopez, CMB (NorthMarq Capital Finance), Kevin Filter (JLL), Sarah Garland (PNC Real Estate), Paige Hood (Prudential Mortgage Capital Company), Tony Love (Forest City Finance Corporation), John K. Powell, Jr. (Bellwether Enterprise Real Estate Capital), Steve Wendel (CBRE Capital Markets), and Thomas Kim (MBA).

To view the white paper in its entirety, please click here.

Ali Ahmad

(202) 557- 2727