According to David Abromowitz of the Center for American Progress, while housing prices improve, indicating recovery in the housing market, one third of the U.S. population rent living quarters and face long-term affordability issues. With middle-class incomes stagnant and rents rising four percent this year because of a rental shortage, he says legislators should focus on privately-funded financing for multifamily housing with a limited guarantee on multifamily mortgage-backed securities from private firms. The loans need to meet strict requirements in terms of size, underwriting, and loan type. As MHProNews has learned, Abromowitz further suggests 51 percent of the rentals should meet the affordable criteria, with rents below 30 percent of the income of the occupants whose incomes are at or below 80 percent of the local median income.
(Photo credit: Homes-for-Rent)