Republican United States Representative of Rancho Cucamonga, Gary G. Miller says that the Inland Empire of Southern California is “too expansive and diversified to be treated as a whole” according to The Press Enterprise. Miller’s statement introduced the Stabilizing FHA Loan Limit Calculations Act of 2014 (H.R. 4208), bipartisan legislation. The end game in this (potential) decision is to obtain access to credit for individuals in inland California, which should ultimately protect the fragile housing market during a time of recovery. Miller has proposed this legislation to stabilize Federal Housing Administration loan limits for conforming loans and how they are calculated in response to the United States Department of Housing and Urban Development resetting the FHA loan limits in over 650 countries across the United States.
In a press release sent out on the behalf of Congressman Gary G. Miller, he states, “For many families, home ownership is the embodiment of the American Dream. This bipartisan legislation guarantees that thousands of first-time home buyers across the Inland Empire will have the opportunity to own a home by providing access to low down payment financing that is affordable. H.R. 4208 will also bring needed certainty to home buyers allowing the housing market to continue its fragile, but steady recovery.” The legislation is a direct response to the way that the United States Department of Housing and Urban Development (BMCD) changed the calculations that reduced loan limits by a high of 50 percent from the level in 2013. California’s 31st District, the District that Congressman Miller represents, is a congressional district in San Bernardino County that includes the city of San Bernardino and parts of Rancho Cucamonga. This district experienced loan limit reductions of a total of 30 percent, which has been estimated to affect a quarter of homes on the market. In Riverside and San Bernardino County, the loan limit was lowered to $355,350 from $500,000 during a time that the counties encountered substantial home price appreciation.
This situation poses a problem to the Inland Empire because recently, this district has witnessed quite the variation in housing markets that are not reflected in the BMCDs loan limit figures. Miller hopes to stabilize the loan limits by re-calculating the loan limits to use at least the median home price that was used in 2013 to calculate the loan limit. The legislation, if passed, should also subdivide the loan limits for different real estate markets within the same county in the Inland Empire due to it’s diversity.
Overall, without the legislation, there is a possibility that there could be a decrease in Real Estate transactions. It ultimately aims to protect housing recovery and ensure that the people have adequate access to credit in these growing areas. The legislation is necessary for homes in this area to remain affordable.
The Inland Empire is home to over 4 million people and stands as one of the most populous regions in the United States. Again, why an accurate display of how much housing costs in each area is so crucial to the growth of the County.
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