I found this story in the San Diego Business Journal, HUD Rules May Hurt Builders.
I honestly see both sides of the question. From one point of view, the restrictions being proposed by the Federal Housing Administration makes sense. For many reasons we do not want to concentrate too high a number of needy people into one site. In particular, it creates a stigma that a housing site is a “project.” Clearly high concentrations of affordable units do not promote mixed income living and integration of society.
Also, a site that has too many FHA loans can become a site with too many risky loans in one location. Face it, the FHA loans establish lower down payments, placing more of the unit under financing arrangements. It clearly helps first time home-buyers, but does create a certain amount of risk.
On the flip-side, even here in Dennis we have seen an impact already of these rule changes. In one for-sale development, we had a buyer for an affordable housing unit, qualified and ready to close. The bank was unwilling to close the deal until one of the other units in the development was sold. This made the worthy buyer wait for to be able to buy the unit (at a cost of continuing to pay rent which could have better served the buyer as being mortgage payments). Ultimately, it also made the builder agree to an offer for a market rate housing unit in the project that was lower than what he otherwise might have accepted.