White House Wants FHA Overflow to Fund Supply of Affordable Housing by Lew Sichelman
The White House wants to use excess revenues from the Federal Housing Administration's main insurance fund to expand the supply of affordable housing. Responding to a report that found the FHA mutual mortgage insurance fund generated $5 billion more in fiscal 1999 than originally expected, President Clinton has asked key federal appointees to recommend ways to use the money to strengthen existing federal housing plans and "develop a plan to enhance comprehensive affordable housing opportunities." Recommendations could include subsidizing the construction of new and affordable rentals, downpayment assistance and more rental assistance vouchers, among a myriad of other possibilities. The President has tossed the ball to Andrew Cuomo, secretary of the Department of Housing and Urban Development, as well as Jack Lew, director of the Office of Management and Budget, and Domestic Poilcy Council Director Bruce Reed. But several key legislators already are lobbying for their own ideas. Rep. Barney Frank, D-Mass., is hoping that new apartment construction will get serious consideration. And Sen. John Kerry, D-Mass., wants to see the creation of a National Housing Trust Fund. Sec. Cuomo vowed that however the money is used, it will be help families get the housing they need to transform their lives and revitalize their communities. The FHA collects revenue from fees it charges borrowers to insure their mortgages against default. Revenues above expenses are currently returned to the Treasury. The agency is now expected to make more in the fiscal years between 2002 and 2006 than the projections contained in the President's proposed budget for fiscal 2001. | 
