Multifamily Markup - March 23, 2016 (Plain Text Version)

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Holland Testifies on Affordability

Clyde Holland, chairman and CEO of Holland Partner Group, testified on Capitol Hill yesterday on the challenge of meeting the increasing demand for multifamily homes for millions of working Americans.

Testifying on behalf of NMHC and NAA, Holland outlined the key reasons why America faces a growing affordability problem – stagnant wages, a supply-demand imbalance and numerous hurdles and regulations in developing new apartments – along with potential solutions

“Almost 75 million young adults are entering the housing market, primarily as renters. At the same time, Baby Boomers and empty nesters are trading single-family houses for rental apartments,” said Holland. “This combination of factors is forecast to lead to four million new renter households over the next decade.”

CONSTRUCTION LENDING

Banks Tap the Brakes on Multifamily Construction Loans

Multifamily industry developers nationwide are starting to experience a more cautious approach to construction lending offered by both national and regional lenders. This is resulting in higher rates, lower proceeds, more demanding completion guarantees and, in some instances, an outright turndown of a loan request. Banks are citing the need to be more cautious because some areas of the country have experienced slowdowns in the lease up of newly delivered apartments as building is slowly catching up with demand. While not widespread across all markets, it is a growing concern among lenders as the long-term run up in the apartment market reaches its seventh year. [return to top]

AFFORDABLE HOUSING

Fannie, Freddie Contribute $186M to Housing Trust Fund

Fannie Mae and Freddie Mac (the GSEs) recently made their first contribution to the National Housing Trust Fund (NHTF) – totaling $186 million – for the production and preservation of affordable housing for low-income families nationwide. The funds were set up as part of the Housing and Economic Recovery Act of 2008, but were put on hold soon after when the GSEs were taken into conservatorship by the Federal Housing Finance Agency. [return to top]

LEAD PAINT

Congress Steps Up Actions to Keep Kids Lead-Safe

Spurred by the water crisis in Flint, Michigan, Congress is focusing attention on lead hazard control with the “Lead-Safe Housing for Kids Act of 2016” introduced in the House and Senate on March 3. The bill addresses federally-assisted housing built before 1978. Specifically, it would require HUD to revise the threshold for requiring a housing risk assessment when a child under six-years-old is found to have an elevated blood lead level (BLL). A comprehensive risk assessment of a housing property would be required to be completed prior to a child moving in. [return to top]

NET NEUTRALITY

House Goes Big on Broadband Deployment

On March 16, the full House approved bipartisan legislation by a unanimous vote of 411-0 that would exempt small internet service providers (ISPs) from enhanced transparency requirements in the Federal Communications Commission’s (FCC) new Open Internet  or ‘net neutrality’ rules. The efforts of Congress to bolster broadband access across the nation could significantly benefit multifamily properties and their residents by ensuring greater access to high-speed internet, particularly in non-urban core areas. [return to top]

DATA SECURITY

Key Consumer Protection Bureau Jumps into the Data Security Fray

For the first time, the Consumer Financial Protection Bureau (CFPB) entered the data security enforcement arena, announcing that it took action against online payment platform Dwolla. Dwolla collects and stores personally identifiable information, including customers’ names, dates of birth, Social Security numbers and banking information. NMHC has been following cyber policy and regulatory developments carefully because of the highly sensitive personally identifiable information that firms and their service providers collect. This information is valuable to data thieves and those wishing to do harm to a company’s reputation or financial standing. [return to top]

NMHC EVENTS

Register Today: NMHC Spring Board Meeting from May 18-20 in Chicago

The 2016 NMHC Spring Board of Directors Meeting will be held from May 18 to 20 at the Four Seasons Hotel in Chicago. Don’t miss this exclusive event that brings together senior apartment executives from the industry’s leading firms. The Spring Board Meeting provides NMHC Executive Committee and Board members with an invaluable opportunity to candidly share information and insight on issues of common interest. Speakers at this must-attend event will include: CNN Senior Political Commentator David Axelrod; Equity Group Investments Chairman Sam Zell; Academic, Researcher, Writer and Entrepreneur Vivek Wadhwa; and Former Secretary of the Treasury Henry M. Paulson, Jr. There will also be informative panels on cybersecurity and on innovative business models for rental housing. The Spring Board Meeting is open to NMHC Executive Committee and Board of Directors members only. Register now! [return to top]

Building Momentum in Busy Election Year

Every day, elected officials make critical decisions that impact the apartment industry, your firm and, ultimately, your job. From housing finance reform to tax policy to fair housing and energy and environmental regulations – policy choices made in Washington have a direct impact on how you operate your company and how successful you can be. NMHC is here for our industry to help educate federal lawmakers so they understand that multifamily is an essential part of the nation’s real estate industry. Read more to learn about upcoming NMHC PAC events. 
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Senate Committee hearing entitled, "Assessing the Effects of Consumer Finance Regulations," on Tues., April 5 at 10 a.m.

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Senate Committee hearing entitled, "The Consumer Financial Protection Bureau's Semi-Annual Report to Congress," on Thurs., April 7 at 10 a.m.

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Please note: The Senate and House are in recess March 24 through April 1.

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End of Tax Break Program May Blunt Impact of New York Zoning Change

New York Times
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Collect and Defend: How to Handle Residents' Data

Multifamily Executive
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A Closer Look: Where Supreme Court Nominee Merrick Garland Stands

New York Times
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The Unintended Consequences of Housing Finance

Smart Growth America
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How Long Until Housing Reform Happens?

Housing Wire
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GOP Chairman: Banks are Facing "Regulatory Waterboarding"

The Hill
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Study: Imbalance Between Renter Population and Affordable Units

National Mortgage Professional
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A Transcript of Donald Trump's Meeting with The Washington Post Editorial Board

Washington Post
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Awkward Moment Alert: President Obama and Castro Meet in Cuba


For the first time in 88 years, a U.S. president visited Cuba this week. But, although every minute of President Obama’s visit was carefully scripted, it seems no one briefed him and Cuban President Raúl Castro on how best to wrap up their historic joint press conference. Find out below what awkward moment left people wondering “what was that?”

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