MBA Statement on HUD Updates to Wind and Named Storm Requirements

WASHINGTON, D.C. (April 18, 2024) — MBA’s President and CEO Bob Broeksmit, CMB, released the following statement regarding the Department of Housing and Urban Development’s (HUD) updates to its wind and named storm policy for Federal Housing Administration (FHA) multifamily loans: 

“Multifamily property insurance availability and affordability is becoming a significant hurdle to increasing rental housing supply, and we have advocated strongly for reforms to the FHA-Insured Multifamily Program to meet the urgent need for affordable housing.

“Increasing the maximum deductible level on new deals is a good start that will help reduce financing costs and make it easier for borrowers to obtain adequate insurance coverage. However, HUD must extend this policy change to existing properties immediately.

“MBA thanks FHA Commissioner Gordon and the team at HUD for their ongoing engagement on this issue and will continue to work with the Biden administration, Congress, and other industry stakeholders on reforms and policies that improve the availability and affordability of property insurance, promote market stability, ensure insurer solvency, and protect taxpayers.”