REAL ESTATE NEWS

At a time when commercial real estate leaders are fixated on housing affordability and the supply gap, HUD's new Federal Housing Commissioner, Frank Cassidy, says his focus is on cutting red tape and helping the private sector build more. Speaking during a panel at the MBA Commercial/Multifamily Finance Convention in San Diego, Cassidy underscored that HUD is working closely with the White House and other partners to clear a path for new development.

"We are working every day with our partners—lenders, stakeholders, the White House, and others—to determine the right strategy and how we can make housing more affordable," said Cassidy, who was recently confirmed as both Federal Housing Commissioner and Assistant Secretary at HUD.

"It's a complicated issue. We're looking at what resources the federal government can provide to help the private sector bring new supply online, and we're hyper-focused on how we can tweak our programs to make them better for borrowers."

Drawing on a background in multifamily, healthcare, and senior housing finance, Cassidy said HUD's priorities for 2026 and beyond center on supporting the private sector's efforts to expand supply and on modernizing lender programs. Some of these changes will take time—"two or three years to materialize," he noted—but the agency is already working to simplify systems and remove bottlenecks.

Cassidy also emphasized rolling back layers of regulation that have accumulated over the years.

"We want to get back to supporting all parties so we can get more deals done and ultimately support more housing," he said, adding that HUD intends to run the Federal Housing Administration more like a business by easing regulatory burdens where possible.

On environmental standards, a flashpoint for many multifamily developers, Cassidy acknowledged their impact on deal feasibility.

"Over the years, significant environmental requirements have been put in place, and in many cases they've killed deals or made them unfeasible," he said. "We are currently working on rolling back many of those requirements, and we hope to issue updates very soon."

Looking inward, he addressed staffing and process challenges within HUD itself. While efficiencies in underwriting have accelerated parts of the loan approval process, Cassidy said they've also created unintended slowdowns in closings.

"We can be as fast as we want in underwriting, but it doesn't matter if the closing process is stuck," he said. HUD is now applying those same efficiency principles to the closing side, an early-stage initiative Cassidy described as "a top priority."

For an industry hungry for clarity, Cassidy's remarks signal that HUD's focus in 2026 will be operational efficiency and regulatory streamlining—pragmatic steps aimed at bringing more affordable housing online amid a persistent national shortage.

Source: GlobeSt/ALM