Multifamily Executive takes a look at how the election might affect some multifamily finance issues:
A variety of issues will face the Congress—should it choose to act on them—among them government-sponsored enterprise (GSE) reform; tax reform, including the low-income housing tax credit (LIHTC); various federal subsidy programs; and several capital-markets regulations, such as those involving commercial mortgage-backed securities (CMBS).
While it’s doubtful either party will have a sufficient Senate majority to ramrod through truly controversial legislation, wide-ranging tax-related reforms will no doubt “all be on the table,” observes Michael Berman, immediate past chairman of the Mortgage Bankers Association and former president and CEO of CWCapital.
All of which creates quite a diplomacy challenge for the industry’s chief lobbying body, the Joint Legislative Program of the National Multi Housing Council (NMHC) and the National Apartment Association. Indeed, NMHC president Doug Bibby must delicately garner support for industry positions from one party aiming to cut subsidies that help the sector, and from the other party likely to tax more of its high earners’ profits. “Each of these approaches presents its own issues for the apartment sector, and our response is to adapt as best we can either way,” Bibby explains.