HUD Secretary Shaun Donovan today called for elements of housing finance reform to focus on the unprecedented need for affordable rental housing during an address at the Center for American Progress. Donovan called the state of rental housing in America a crisis, “the worst rental affordability crisis that our country has ever known.” He highlighted the successful track record of the Fannie Mae and Freddie Mac multifamily businesses throughout and after the financial crisis, and he supported key elements of multifamily housing finance reform that NHC and others have been advocating: a properly priced government backstop behind private risk-bearing capital, continuation of both successful GSE multifamily platforms, allowing competition from new issuers, ensuring that housing finance reaches all qualified borrowers and neighborhoods, a baseline portfolio requirement to serve affordable housing, and generation of at least $5 billion in annual revenue from the entire secondary mortgage market dedicated for affordable housing.
NHC, CAP, and others support these elements to housing finance reform. You can see details in my recent testimony to the Senate Banking Committee.
See a full recording of Sec. Donovan’s speech and the following panel discussion.