In a dramatic move to spur construction of much-needed multi-family rental housing across the country, U.S. Housing and Urban Development Secretary Mel Martinez today proposed that HUD raise the FHA loan limits by 25 percent.
"Since loan limits were last increased, construction costs in some areas have risen by 25 percent or more. These increasing costs, coupled with the static loan limits, have driven developers to more lucrative projects.As a result many Americans have been left to scramble for suitable housing. A recent HUD report reveals that nearly five million American households suffer from worst case housing needs. These families are defined as renters who receive no federal housing assistance, have incomes below 50 percent of their area's median family income and who pay more than half of their income for rent and utilities or live in severely substandard housing."
Thanks to Abhijeet Chavan
FULL STORY: HUD No. 01-033
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