H.R. 6132: Housing Affordability Act

This bill, known as the Housing Affordability Act, aims to adjust the loan limits for multifamily housing under the National Housing Act. The changes proposed would specifically modify the dollar amounts used in calculations for loans related to multifamily residential properties, which can impact developers, landlords, and housing projects across the country.

Key Amendments

• Adjustment of Loan Amounts: The current limits for multifamily loans will be significantly increased. The bill revises various existing dollar amounts to much higher figures, starting from January 1, 2026. For example, the limit that was $38,025 would increase to $167,310, and other loan limits would similarly rise substantially.
• Indexing for Future Adjustments: Future loan limit adjustments will be based on the Price Deflator Index of Multifamily Residential Units Under Construction. This means the limits will be updated annually based on changes in construction costs, making them more responsive to market conditions.
• Publication Requirements: The Secretary will be required to publish any adjustments to these loan amounts in the Federal Register, ensuring transparency and public awareness of the changes.
• Rounding Rules: Any adjusted dollar amount will be rounded down to the nearest dollar, ensuring no fractional cents are included in the loan amounts.

Specific Changes to Loan Limits

The bill outlines numerous specific updates to existing loan limits. Here are some examples of the changes:

• A loan limit currently set at $38,025 will increase to $167,310.
• A limit currently at $42,120 will rise to $185,328.
• Other limits will follow similar patterns of significant increases, with some reaching as high as $375,443 from previous amounts.

Impact of Changes

The revisions aim to enhance the availability of credit for multifamily housing projects. By increasing the loan limits, the bill seeks to facilitate financing for new housing developments, renovations, and other projects in the multifamily sector.

Relevant Companies

• PLD (Prologis, Inc.): A major player in the real estate investment trust sector focused on logistics real estate, likely to benefit from increased multifamily housing development.
• EQR (Equity Residential): A company specializing in the acquisition and management of rental apartment properties, which could see expansion opportunities driven by the higher loan limits.
• AIV (Apartment Investment and Management Company): Focused on rental apartments, more favorable financing could allow for growth and development under the revised loan limits.