Earlier this week, we shared that the 21st Century ROAD to Housing Act is now law.
It’s the first major federal housing legislation in nearly two decades, and it significantly increases statutory loan limits for FHA-insured multifamily loans.
Those higher limits will make FHA financing available for more projects in more markets, allowing many developers to take advantage of FHA’s higher leverage.
Another Development Worth Watching: Modular Construction Could Gain Momentum Under FHA
The legislation also directs FHA to evaluate upfront deposits and other financing barriers affecting modular construction.
As labor shortages and construction costs continue to challenge the multifamily industry, modular construction is receiving increased attention as one way to deliver housing faster and more efficiently. While any program changes will take time, the legislation represents another step toward making FHA financing available for modular projects.
As FHA programs continue to evolve in response to today’s housing challenges, AGM Financial remains focused on helping developers understand not just what FHA offers today, but also tomorrow’s opportunities and on successfully guiding projects from concept to closing.
Other Provisions to Watch
The legislation also includes several additional measures that could positively influence housing development over time, including:
- Incentives for local governments to streamline environmental reviews
- Targeted exemptions and expedited NEPA reviews for certain projects
- Measures to encourage housing development in Opportunity Zones
- Added 100,000 units to the Rental Assistance Demonstration program
The practical impact of these provisions will depend on future agency guidance and implementation, but together they reflect continued bipartisan efforts to increase housing supply.
Considering FHA financing for an upcoming multifamily development? Contact AGM Financial to discuss how these recent changes could affect your project.
About AGM Financial Services, Inc.
Family-owned with over 30 years of experience, AGM has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.