Apr. 13, 2023
NMHC Briefs FHFA Director on Adaptive Reuse
NMHC met with FHFA Director Sandra Thompson to brief her on potential adaptive reuse applications within the multifamily housing industry. Notably, NMHC highlighted a newly released NMHC and ULI research paper, Behind the Facade The Feasibility of Converting Commercial Real Estate to Multifamily. NMHC also provided an overview of proposed tax credit legislation to support adaptive reuse.
What This Means: Prior to this meeting, the Director reached out to NMHC and requested a briefing on the new research report. She expressed a desire to gain a deeper understanding of this fledgling market and to analyze if there is a role for the Enterprises or the Federal Home Loan Banks (FHLBs) to play in supporting these conversions into multifamily housing.
Why This Matters: The U.S. needs to build 4.3 million more apartments by 2035 to meet the demand for rental housing. Adaptive reuse of existing buildings holds the potential to chip away at our Nation’s supply shortage—subject to a number of structural, financial, geographic and motivation of local governments.
NMHC's Viewpoint: The Director expressed interest in continuing her analysis and asked for assistance from NMHC. We appreciate the Director’s interest in identifying creative solutions to improve the housing affordability crisis. As such, we look forward to working with FHFA to analyze the potential involvement of the Enterprises and the FHLBs in supporting adaptive reuse.