More work for builders as Clinton pushes laws.

Sen. Hillary Rodham Clinton's proposed legislation to help more homebuyers qualify for FHA loans could mean more work for homebuilders.

Clinton, who was keynote speaker at the 30th Annual Award luncheon hosted by the New York Housing Conference and National Housing Conference last week, said she is going to introduce the "FHA Single Family Loan Limit Adjustment Act of 2003."

The legislation would raise FHA's median home price calculation from 95 to 100 percent, and eliminate the existing 87 percent ceiling on FHA loans. The result will be a loan limit tied to the median home price in each local area, which in New York would raise the amount from $290,000 to $310,000.

"This might not mean much for Cleveland, Ohio or Detroit, Michigan, but in New York, this would increase the number of homes eligible for FHA loans by nearly 900,000," said Clinton. "A strong local and state response is needed. But no city should be forced to address this issue alone. Our cities are the pillars of our economy. As they go, so goes the nation. For that reason, the Federal government has a critical role to play."

Although officials from the National Association of Home Builders would like to see the details of the bill before taking an official position on the Clinton proposal, it supports the concept of moving single family mortgages to 100 percent of area median home prices.

"The FHA limits often make it difficult to use FHA-insured mortgages for new home purchases, particularly in areas where the median price is influenced by a large number of sales of older, lower-priced homes," said David L. Ledford, NAHB staff vice president housing finance.

"In addition, in some high housing cost areas of the country, FHA currently sees very little activity since almost all available homes are priced over the FHA limit. The proposed adjustment could help address those problems."

Clinton said even though the bill would help to create more affordable housing, the state and city must also continue to find solutions.

"Affordable housing is the foundation of healthy, economically vibrant communities that offer opportunities for everyone to achieve their full potential," she said. "We must work together to address this issue.

"Government can play a role, not just in supporting programs that we know work, but also in empowering creative solutions."

Clinton has also promoted and helped launch the Employer Assisted Housing Program throughout New York State.

The program is a public-private partnership to help low income families become homeowners by assisting them with down payment and closing.

In addition, she has fought to protect the Section 8 Housing Vouchers program to ensure its renewal in 2004. As a co-sponsor of The National Affordable Housing Trust Fund Act, the bill would address the severe affordable housing shortage by increasing long-production.