David Price: “I think it is a simple, straight forward, commonsense amendment that would simply prohibit HUD from overcharging users…”

“I think it is a simple, straight forward, commonsense amendment that would simply prohibit HUD from overcharging users of the FHA multifamily insurance program. Now, no credit subsidy funding has been provided in this bill for the multifamily for-profit program, and I understand the committee's decision to eliminate that subsidy. Unfortunately, however, elimination of the subsidy requires an increase in the premiums that are paid by program users. That could translate into higher debt service and up-front costs for owners and higher rents for families that depend on this housing. Many users of the for-profit program think that the credit subsidy formula that HUD is currently using to calculate premiums may not accurately reflect the actual risk to the government of the loans as they are now being underwritten. This amendment simply makes clear that if, based on its reassessment of the credit subsidy formula, HUD determines that the formula should be changed, then program premiums should not be higher than is necessary to support the program.”