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