The U.S. Department of Housing and Urban Development (HUD) has issued a proposed rule that would modify the Federal Housing Administration’s (FHA) multifamily mortgage insurance regulations to prohibit a requirement that proceeds from the sale of tax credits be placed in escrow at the time of initial endorsement for assurance of project completion and to pay the initial service charge, carrying charges, and legal and organizational expenses related to project construction. This rule would not prohibit HUD from requiring escrows of funds for other purposes. Comment deadline: December 8, 2009. Read More…