WASHINGTON -- Legislation pending in Congress would raise the size of multifamily mortgages that the FHA could insure in cities with high housing costs, enabling the cities to move forward with bond-financed projects that have been stalled by the limit.

Increasing the so-called high-cost adjustment to the Federal Housing Administration's multifamily insurance limits "will make projects that are otherwise unfeasible feasible in areas like New York and San Francisco, which are the two main beneficiaries" of the proposed change, said John C. Murphy, the executive director of the Association of Local Housing Finance Agencies.

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