Multi-Housing News - February 2009 - (Page 10)

perspective NMHC Washington Outlook 2009 By Jim Arbury, National Multi Housing Council This will be a very challenging year for multifamily housing, full of minefields and opportunity. We have a new President, a new Congress, and a global credit crisis. The apartment sector is financially healthier than other commercial real estate sectors. Yet despite this relative good health, credit to our sector from banks, life insurance companies, pension funds and the commercial mortgage-backed securities (CMBS) market is in turmoil. There is an estimated $400 billion in commercial real estate loans maturing this year, so clearly, a new credit facility for commercial real estate debt is needed. We have recommended to the Treasury Department that it use funds from the $700 billion Troubled Assets Relief Program to either directly purchase CMBS with an “AAA” rating or to provide a guarantee for investors in the securities. This would provide liquidity to borrowers who accessed the CMBS market to finance existing properties and would expand the availability of debt capital. Economic Stimulus A massive new stimulus package—possibly exceeding $850 billion over two years—is very likely to pass soon. NMHC is working to educate the new Congress so that when it allocates these funds it doesn’t repeat failed housing policies. We are encouraged by the nice balance between rental and single-family incentives in last summer’s Housing and Economic Recovery Act stimulus package, and we expect that this stimulus package will be similarly balanced. Congress should not try to re-inflate the housing bubble or artificially prop up house values. Some members are calling for legislation reinstating seller-financed downpayments and for a federally financed interest rate buydown. These are short-sighted props for single-family, which triggered this global economic crisis—and would only lead to future bailouts. A few have suggested new homebuyer tax credits, but it makes little sense to use taxpayer dollars to subsidize the purchase of an asset that is 10 February 2009 | Multi-Housing News | Official Publication of Multi-Housing World http://www.surveymonkey.com/productchoice09 http://www.surveymonkey.com/productchoice09

Table of Contents for the Digital Edition of Multi-Housing News - February 2009

Multi-Housing News - February 2009
Contents
From the Editor
Executive Insight
Perspective
NMHC Washington Outlook
Market Forecast: Gulf Coast
Renovating in a Recession: New Rules
Development & Design: Make Way for Modular
Products: Security
Finance: Structured Financing
Directory: Multi-Housing Finance Providers
Technology: Utility Management

Multi-Housing News - February 2009