Housing Affordability Act
- Sponsor
- Rep. De La Cruz, Monica [R-TX-15]
- Committees
- Financial Services Committee (primary)
- Last action
- Nov 19, 2025
Bottom line
The bill aims to boost multifamily housing development and affordability by substantially raising federal loan limits and implementing an automatic, inflation-adjusted mechanism for future modifications.
What it actually does
This bill significantly increases the maximum loan limits for various multifamily housing programs under Title II of the National Housing Act, including those for general multifamily housing, cooperative housing, urban renewal, low- and moderate-income housing, housing for the elderly, and condominiums. It also establishes a new, indexed method for annually adjusting these loan limits, tying them to the 'Price Deflator Index of Multifamily Residential Units Under Construction' starting January 1, 2026.
Proponents argue
Proponents argue that current FHA multifamily loan limits are severely outdated and no longer reflect the true costs of construction and development, particularly for affordable housing projects. They contend that increasing these limits will unlock crucial financing, stimulate the creation of new housing units, and help address the national housing shortage, ultimately making housing more accessible and affordable. The new adjustment mechanism ensures limits keep pace with market realities.
Opponents contend
Opponents might argue that such a substantial increase in loan limits could inflate housing costs further by encouraging more expensive developments or by shifting greater financial risk to federal backing without sufficient safeguards. They may also contend that these higher limits could disproportionately benefit developers and lenders rather than directly translating into lower rents or more affordable housing for tenants, or that it could lead to overbuilding in certain markets.
The bill is concise and its core changes are clearly presented, making it accessible for a quick but informed review.
Section 2(1)
Establishes New Multifamily Loan Limit Adjustment Formula
This provision amends Section 206A of the National Housing Act to change how multifamily loan limits are adjusted annually. Starting January 1, 2026, the Secretary of HUD will calculate adjustments based on the percentage change in the 'Price Deflator Index of Multifamily Residential Units Under Construction' from the Bureau of the Census. It also mandates that these adjustments be rounded down to the next lower dollar and published in the Federal Register.
Supporters argue
Supporters argue this new formula is more accurate and responsive to real-world construction costs, ensuring that FHA loan limits remain relevant and effective in supporting multifamily housing development, especially for affordable housing. It removes arbitrary caps and links adjustments to a specific, objective economic indicator, providing greater certainty for developers.
Critics contend
Critics might argue that tying adjustments to a specific index could lead to rapid increases in loan limits during periods of high inflation, potentially increasing federal exposure to risk or contributing to housing price inflation without sufficient safeguards. They might prefer a more discretionary or capped adjustment mechanism to maintain greater control.
Tradeoffs
This provision balances the need for FHA loan limits to keep pace with escalating construction costs and market dynamics against concerns about potential federal financial exposure and the impact of automatic adjustments on housing market stability.
Sections 2(2) through 2(7)
Substantial Increase to Multifamily FHA Loan Limits Across Programs
This provision enacts dramatic increases to the maximum dollar amounts for FHA-insured multifamily loans across multiple programs under Title II of the National Housing Act. For instance, the loan limit for a dwelling unit without a bedroom under Section 207(c)(3)(A) is raised from $38,025 to $167,310, and for a four-bedroom unit from $70,200 to $308,880. Similar significant increases are applied to cooperative housing, urban renewal, low- and moderate-income housing, housing for the elderly, and condominium projects, updating limits that have been static for many years.
This provision removes the specific phrase ", or not to exceed $17,460 per space" from the multifamily loan limits for mobile home parks under Section 207(c)(3)(A) of the National Housing Act.
Section 2(2)(F)
Why it matters:This deletion is likely standard legislative practice for making minor textual adjustments within a larger amendment block, rather than an intentional effort to conceal its impact.
Case for: Proponents would argue that removing this specific per-space limit provides greater flexibility for financing mobile home park developments, allowing for more modern and potentially higher-quality infrastructure or larger lots, aligning with current development costs and needs without an arbitrary cap.
Case against: Critics might argue that removing a per-space cap could lead to less efficient use of land or higher overall project costs without a clear benefit to affordability, potentially increasing the FHA's exposure to risk for such developments if not carefully managed.
Estimated impact: Likely increases the maximum insurable loan amount for mobile home park projects, potentially facilitating larger or more amenity-rich developments that were previously constrained by the per-space limit.