Printer Friendly

HOUSING, ENERGY BILLS AID HOME BUYERS, SAYS NAHB

 HOUSING, ENERGY BILLS AID HOME BUYERS, SAYS NAHB
 WASHINGTON, Oct. 30 /PRNewswire/ -- President Bush has signed


into law key housing and energy bills passed by Congress earlier this month that will help first-time home buyers enter the housing market.
 The Housing Authorization bill, signed by the President on Oct. 28, raises the Federal Housing Administration's (FHA) single- family mortgage limit to reflect local housing costs. Of equal importance, the bill repealed the 57 percent limitation on financing closing costs for FHA buyers.
 "These two measures alone will help many new FHA buyers realize the dream of homeownership by reducing their out-of-pocket settlement costs and allowing access to FHA loans in high-cost areas," said Robert "Jay" Buchert, president of the National Association of Home Builders (NAHB).
 The bill sets FHA's new mortgage insurance limit at 95 percent of the area median sales price, up to a maximum of 75 percent of the 1992 conforming loan limit of the secondary mortgage market. This effectively raises the maximum loan amount FHA will insure from $124,875 to $151,725.
 "These changes will give thousands of families a chance to obtain FHA financing -- particularly in high-cost areas --- who previously would have been shut out of the housing market," said Buchert.
 The bill contains several other housing provisions:
 -- The Government Sponsored Enterprises of Fannie Mae and Freddie Mac will be regulated by an independent office within HUD and be governed by statutory requirements for specific capital standards and specific activity levels for low- and moderate-income housing, including requirements for inner-city rural areas.
 -- The Farmers Home Administration reauthorization includes increasing the Section 502 single-family guaranteed loan program limits to a maximum of 115 percent of area median income to conform with the mortgage revenue bond program. Contradictory language regarding the Section 515 multi-family occupancy requirements will be removed and the definition of development costs will be expanded for the Section 515 program.
 -- The housing block grant program, known as HOME, is opened to new construction without restriction, while the recipient match for new construction is far less onerous with a two-tiered match of 30 percent for new construction and 25 percent for all other housing activities.
 -- FHA multifamily mortgage limits will be increased by 20 percent.
 -- Two FHA multifamily pilot programs will be created for the financing of multifamily housing.
 --FHA-VA reciprocity for subdivision approval will be extended until June 15, 1992.
 -- The Community Development Block Grant Program will be increased from roughly a $3 billion program to $4 billion, with funding authorized for communities adversely impacted by reductions in defense related spending.
 -- Four major studies of the Federal Home Loan Bank System will be conducted.
 -- Lead paint provisions are also included in the bill, with grants to reduce and eliminate lead-based paint hazards in housing.
 Energy
 Last week, President Bush signed a comprehensive energy bill in Louisiana. With regard to housing, the legislation addressed residential building standards, called for voluntary home energy rating systems, a five-state energy efficient mortgage pilot program, national voluntary window rating and labeling system and energy efficiency requirements for certain plumbing products such as shower heads, faucets and water closets.
 The bill imposes mandatory residential building standards on FHA, FmHA and VA new homes equivalent to the 1992 edition of the Council of American Building Officials Model Energy Code (CABO MEC) and requires states to consider updating their energy code to a standard which meets or exceeds the 1992 edition of the CABO MEC.
 "The legislation will result in more energy efficient homes and that translates into lower energy bills for consumers," said Buchert.
 -0- 10/30/92
 /CONTACT: Jay Shackford of the National Association of Home Builders, 202-822-0406/ CO: National Association of Home Builders ST: District of Columbia IN: CST SU: LEG


IH-TW -- DC020 -- 7256 10/30/92 15:53 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 30, 1992
Words:631
Previous Article:KENNEDY-WILSON INC. RELEASES PRELIMINARY THIRD QUARTER RESULTS
Next Article:TAPISTRON INTERNATIONAL REPORTS FISCAL FOURTH QUARTER AND YEAR END RESULTS
Topics:


Related Articles
TAX BILL OPPOSED BY NAHB FOLLOWING REMOVAL OF ECONOMIC STIMULUS MEASURE
TAX BILL OPPOSED BY NAHB FOLLOWING REMOVAL OF ECONOMIC STIMULUS MEASURE
UTILITY INDUSTRY DEREGULATION EFFORTS IN CONGRESS COULD PULL THE PLUG ON NEW HOME AFFORDABILITY, BUILDERS WARN
Conference to focus on spreading green fever.
NAHB approves national green building program.
Home builders downbeat in May, NAHB says.
Industry pros rush to snag new designation.
Builder confidence sinks further, says NAHB.
NAHB: extend, enhance $8,000 home buyer credit.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters