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- Establish a community economic development fund within the FHLB System, analogous to the Affordable Housing Program (AHP) by modifying the FHLBs’ RefCorp payment obligation.
Read more recommendations - Add shared-equity homeownership to the underserved market definitions for the government sponsored enterprises (Fannie Mae, Freddie Mac, and the FHLB System). Require the GSEs to lead the industry in duplicating mortgage bundling and secondary mortgage purchases of land trust housing, housing cooperatives, and limited equity condominiums.
Read more recommendations(Currently, the GSEs “bundle” shared equity mortgages only in Washington, DC and New York City). This will position shared-equity housing on a par with single-family homes as “portable assets.” - Preserve Low Income Housing Tax Credit (LIHTC) properties nearing expiration (year 15) by providing new LIHTC allocations to restructure expiring-use properties;
Read more recommendationsfacilitating the appropriate use of reserves through year 15, not just in middle years; and requiring that a soft junior loan (e.g., a nonamortizing, low- or no-interest cash flow loan) not have a repayment trigger when the property is sold or refinanced. - Establish a federal second-mortgage tax credit. Lenders would receive tax credits to provide no-interest loans to low wealth families, making first mortgages affordable and addressing both the wealth and income constraints to homeownership.
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