NAR has joined 14 other housing organizations in a letter supporting the bipartisan Housing Affordability Act (S.1527)pdf, sponsored by Senators Reuben Gallego (D-AZ) and David McCormick (R-PA). The legislation updates FHA's multifamily loan limits to reflect current construction costs.

The FHA's multifamily loan limits have remained unchanged since 2003, falling far behind today's construction costs. This outdated policy has become a barrier to building middle-income housing, with nearly all communities now classified as "high-cost areas"—meaning they exceed normal loan limit thresholds and require special exceptions to qualify for FHA financing.

The bill would change the annual adjustment index from the Consumer Price Index to the Price Deflator Index of Multifamily Residential Units Under Construction, more accurately tracking construction costs.

This legislation would help expand housing supply—a top NAR priority—while bringing additional payments to the FHA Mortgage Insurance Premium fund and reducing regulatory burden.

NAR will continue monitoring this legislation as it moves through Congress and provide updates as developments occur.