FHA loan limits for multifamily housing — apartments, co-ops, and senior housing — haven't been meaningfully updated in decades, even as construction costs have skyrocketed. This bill would roughly quadruple those per-unit limits across the board (for example, raising the limit for a one-bedroom unit from about $38,000 to $167,000) and update the annual adjustment formula to track actual construction cost inflation. For developers and renters, this could make it financially viable to build more affordable housing with FHA-insured financing in high-cost markets.
Congressional Summary
Housing Affordability ActThis bill increases the Federal Housing Administration’s (FHA's) multifamily housing loan limits for mortgage insurance and requires the use of a more specific inflation index for these limits.Specifically, the bill increases the loan limits to qualify for FHA mortgage insurance for rental housing, cooperative housing, rehabilitation and neighborhood conservation housing, housing for moderate income and displaced families, housing for elderly persons, and condominiums, and it requires these limits to be indexed to the Price Deflator Index of Multifamily Residential Units Under Construction released by the Bureau of the Census. Currently, these limits are indexed to the Consumer Price Index for All Urban Consumers.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-04-30
- Date Added
- 2026-04-15