Current fed financing regulations via FHA, Fannie Mae, Freddie Mac, and HUD all limit non-residential to a small percentage of the total value or imputed rent of a given project. These restrictions hamper market recovery by assigning risk by type of development, rather than credit worthiness, and disfavor mixed-use areas that have performed better during the current housing crisis.
The worst performing and riskiest investments – single-use, sprawling areas at the metro edge - are still preferentially classified for fed financing. Join CNU and tell Obama to eliminate the restrictive covenants on commercial space in traditional neighborhood districts. Allow investors and developers to produce the communities people are looking to move into, and help jumpstart much needed economic growth.