Apartment Trends Magazine August 2015 | Page 32

APARTMENT ADVOCATE NATIONAL APARTMENT ASSOCIATION Patent Reform Takes a Step Forward A partment companies and their service providers have been targeted by abusive “patent trolls” who threaten legal action and demand fees for alleged infringement without evidence to back them up. The “Innovation Act” passed through House Committee on June 11. The bill was passed by the full House during the last Congress and is focused on addressing patent abuses, but does not fully cover demand letters. The “PATENT Act” was also passed through Senate Committee earlier this month and would comprehensively address patent enforcement, including letters that demand a specific amount for settling an alleged infringement. However, even those who supported the measures say more work must be done and changes will be made. NAA/NMHC are urging Congress to pass legislation that brings greater transparency and efficiency to patent regulation and enforcement. We are also asking lawmakers to strengthen disincentives to fraud and abuse, including predatory demand letters. Claims have involved off-the-shelf technology products, web-based marketing and transaction platforms, and even routine construction practices. 30 | TRENDS •AUGUST 2015 There is bipartisan support in Congress to curb the problem. But differences remain over several aspects of the issue, especially litigation procedures, standards of evidence and payment of fees by the losing party to an enforcement action. Lawmakers must balance disincentives for abuse with opportunities for legitimate claims. This also needs to be done in a way that won’t limit research and development for the pharmaceutical industry and a range of other sectors. NEW CAPS MAY BOOST FANNIE, FREDDIE MULTIFAMILY PURCHASES TO $40 BILLION The Federal Housing Finance Agency (FHFA) has revised the types of loans that would not count towards the calculation of the $30 billion production lending caps that Fannie Mae and Freddie Mac each operate under for multifamily loan purchases this year. The related guidelines were officially announced recently and experts estimate they could boost 2015 multifamily purchases to more than $40 billion. The following new FHFA guidelines are retroactive to January 1 of this year: • A pro rata portion of multifamily loan amounts purchased by Fannie and Freddie in 2015 will be excluded from the caps based on the percentage of units in a property affordable to renters at 60 percent of area median income; • In higher cost areas, the income threshold for affordability will be raised to 80 percent of area median income; and • For very high cost markets, the income threshold for affordability will be raised to 100 percent of area median income. Importantly, Fannie and Freddie have also revealed the high cost and very high cost markets. Several cities have specified counties only and can appear in either category – or don’t include the entire city listed. They are: • High cost: New York City, Washingt ۈ