HUD has released Notice H 2012-25 which provides guidance on the circumstances under which HUD may consider amendments to Use Agreements for properties assisted under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). Congress enacted LIHPRHA in 1990 to prevent the loss of several hundred thousand FHA-insured affordable housing units and since then, HUD has overseen hundreds of properties. Today, many LIHPRHA properties are in need of additional repair and modernization to ensure they remain viable for current and future residents.
Notice H2012-25 clarifies the circumstances under which a use agreement for a LIHPRHA property may be amended, the amendments that may be allowed, and the conditions that must be met in the proposed preservation transaction to be considered for approval. HUD hopes specifically that this Notice will help facilitate more LIHPRHA preservation transactions, particularly where Low-Income Housing Tax Credits are involved. The Notice applies to all properties that received incentives under LIHPRHA and have a recorded LIHPRHA use agreement. All requests for amended and restated use agreements should be submitted to HUD HQ for review and final approval.
Click here to read Notice 2012-25.
