Federal / Agency News
GAO Releases Report on Housing Finance Reform
The Government Accountability Office (GAO) issued a new report Housing Finance: Prolonged Conservatorships of Fannie Mae and Freddie Mac Prompt Need for Reform. The report, prepared for Chairwoman of the House Committee on Financial Services Maxine Waters (D-CA) and Congressman Sean Duffy (R-WI), calls on Congress to “consider legislation for the future federal role in housing finance that addresses the structure of the enterprises, establishes clear, specific, and prioritized goals and considers all relevant federal entities, such as FHA and Ginnie Mae.”
House passes bills to fund HUD, USDA
The US House of Representatives passed two appropriations bills that would fund the Departments of Transportation, HUD, and Related Agencies (H.R. 267) as well as the Departments of Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (H.R. 265). H.R. 267 passed with a vote of 244-180, with twelve Republicans voting in favor of […]
HUD Multifamily Notices on FHA and Asset Management Operations During Shutdown
HUD’s office of multifamily housing issued two memos regarding its operation during the partial government shutdown. The first memo details Federal Housing Administration (FHA) mortgage insurance applications and production activities and the second memo details multifamily asset management activities.
OZI submits comments on Treasury’s Opportunity Zones proposed rule, Treasury cancels hearing
The National Association for Opportunity Zone Investment (OZI) submitted its comment letter to Treasury’s proposed rule on Investing in Qualified Opportunity Funds. OZI’s comments seek to establish an informal safe harbor for plain vanilla, prudent and “down the middle of the fairway” transactions.
FFB Risk Sharing Program Ends
The Federal Financing Bank (FFB) multifamily risk-sharing initiative with Housing Finance Agencies (HFAs) officially ended on Dec. 31, 2019. In February of 2018, HUD announced that it would end the FFB financing initiative on Sept. 30, 2018. In September of 2018, HUD then granted an extension through the end of the year to review the program’s effectiveness.
IRS proposed rule on reissuance of state or local bonds
The Internal Revenue Service (IRS) issued a proposed rule on reissuance of state or local bonds. The proposed rule provides steps for determining when tax-exempt bonds are treated as retired for purposes of sections 103 and 141 through 150 of title 26 of the Code of Federal Regulations. The proposed rule also amends §1.1001–3(a)(2) of the Internal Revenue Code to conform that section to the special rules in the proposed rule for retirement of qualified tender bonds.
Otting named interim FHFA director
President Trump has named Comptroller of the Currency Joseph Otting as acting director of the Federal Housing Finance Agency (FHFA) beginning Jan. 6, after Director Mel Watt’s term ends.
HUD releases FY 2019 Section 8 HAP AAF
HUD issued a notice of Fiscal Year (FY) 2019 Annual Adjustment Factors (AAFs) for certain properties in HUD’s Section 8 housing assistance payment (HAP) programs. The AAFs are provide annual adjustments to rents based on data from the Bureau of Labor Statistics Consumer Price Index survey.
IRS issues final rule on public approval of tax-exempt PABs
The Internal Revenue Service (IRS) issued a final rule that updates requirements for public approval of tax-exempt private activity bonds (PABs). All PABs are required to hold a hearing of public approval. The rule changes the reasonable public notice period from 14 to 7 days prior to the hearing and allows for the posting of the hearing on a website without other notice.
Congress prepares CR through Feb. 8
Congress is readying a short-term continuing resolution that would fund the government through Feb. 8 and avert a partial government shutdown on Friday, Dec. 21. Seven appropriations subcommittee bills, including Transportation-HUD, still have yet to receive funding for all of Fiscal Year (FY) 2019. Five of the twelve appropriations subcommittee bills are funded for all of FY 2019 and won’t need a CR to continue operating.
CDFI Fund Director Donovan Steps Down; New Director Named
Annie Donovan announced that she will step down as the director of the Community Development Financial Institutions (CDFI) Fund at the U.S. Department of the Treasury. Donovan will be replaced by Jodie Harris in January.
USDA Rural Housing Services Staffing Changes
The U.S. Department of Agriculture Secretary Sonny Purdue sent a letter to House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Chairman Robert Aderhold (R-AL) to explain staffing changes within the Rural Housing Service (RHS) Section 538 rental guarantee program and Section 515 rental loan program.