"This provision will help enable middle class people who are currently shut out of homeownership to purchase homes," said Congressman Frank. "We live in a high cost area, and we need to make sure that middle class people are not driven out because they cannot secure a mortgage."
Congressman Stephen F. Lynch said, "in recent years, we have seen many working families priced out of the neighborhoods where they grew up, as the cost of purchasing a home continues to skyrocket. This initiative will enable thousands more American families to achieve their dream of homeownership and create stronger ties within our communities."
"The cost of housing in
Since housing prices vary across the nation, the geographical distribution of conforming loans is uneven. In high cost areas, such as greater
Similarly, late in 2003, the House passed Mr. Frank's legislation to raise the loan limits for Federal Housing Administration (FHA) insured multi-family unit construction in high cost areas such as greater Boston. That legislation allowed the Department of Housing and Urban Development to increase loan limits in high cost areas by up to 240% of the limit in non-high cost areas, and by up to 270% with special approval by HUD.