Multifamily industry should be strong this year, says FHA official

The apartment industry may improve in 2012.

Marie Head, the deputy assistant secretary of multifamily housing for the Federal Housing Administration, noted in an interview with Apartment Finance Today that the multifamily housing industry could have a strong year in 2012, which would be comparable to last year's results.

Head explained that the total volume of the market in 2012 should be similar to last year's figures, which could make property management companies more comfortable about the overall situation. Much of the improvements could be due to loans that were not completed last year, but can be addressed now.

In addition, the market could see an improvement in the FHA's tax credit program volume, she said. Also, from 2009 to 2011, the market experienced nearly 150 percent more commitments from firms for construction, new acquisitions and remodels.

Head added that the government agency has continued to lobby for an increase of mortgage insurance premiums. A continued push for these with a new budgeting model that differs from historical attempts could help manage risk for the agency, which has seen its cash reserves drop.

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