ShareWASHINGTON (June 29, 2023) – National Association of Realtors® President Kenny Parcell issued the following statement after an announcement made by the Department of Housing and Urban Development (HUD) and Federal Housing Administration (FHA) of an increase to the threshold dollar amount for "Large Multifamily Loans" from $75 million to $120 million:
"NAR applauds FHA for increasing the "Large Multifamily Loans" threshold for the first time since 2014," said NAR President Kenny Parcell. "The real estate market looks drastically different than it did almost ten years ago, and this increase reflects the changes in the market and the need to speed up and encourage multifamily rental development. NAR has advocated for this specific adjustment to the threshold dollar amount just last year, and we commend the FHA for stepping up to make this long overdue and common-sense change. Our association thanks the agency for this increase, and possible future increases, that will create greater flexibility for lenders and facilitate the creation of more rental housing across this country."
In addition to FHA increasing the threshold dollar amount, the new policy opens the possibility of future annual increases of $5 million. In November 2022, NAR and several rental housing coalition partners sent a letter to FHApdf requesting that the agency make this specific update. NAR is pleased that the FHA has made this change and will continue to work with the agency to improve its programs further to encourage and assist in developing more multifamily housing.
The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.
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