News

HUD Publishes FHA-HFA Multifamily Risk-Sharing Final Rule

HUD published its final rule amending existing regulations for the Section 542(c) Housing Finance Agencies (HFA) Risk-Sharing Program. The final rule adopts without substantive changes the March 8, 2016, proposed rule. The rule is intended to better align the Risk-Sharing program regulations with current industry and HUD policies and practices and provide greater flexibility for program participants. Some of the key changes included in the final rule include:

  • Allowing certain loans made by Level I HFAs (those that assume 50 percent or more of the risk of the loans) not to be regularly amortizing, provided the loans have a minimum term of 17 years and HUD approves the HFA’s underwriting standards, loan terms and conditions and asset management and servicing procedures;
  • Making the program easier to use for preservation deals by expanding the ability to ensure equity take-out loans for refinancing and acquisition deals and amending the definition of substantial rehabilitation;
  • Applying the same underwriting standards to supportive housing developments financed by Level I HFAs as currently used for Section 202 developments for the elderly, thereby allowing the use of contract rents in the loan underwriting process; and
  • Requiring recertification every five years of the underwriting standards, loan terms and conditions, and asset management and servicing procedures for Level II HFAs (those that assume less than 50 percent of the risk of loss on mortgages insured under this program).

HUD Publishes Section 202 Capital Advance NOFA

HUD announced the availability of $150 million in grants to support the development of new affordable multifamily rental housing along with ongoing project rental assistance for low-income seniors. The grants are offered under HUD’s Section 202 Supportive Housing for the Elderly program and will be awarded to nonprofit organizations across the country. Section 202 grants provide very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to meet their unique needs. Applications are due by May 26th, 2021 and must be submitted via www.grants.gov.

Michigan Extends HTC Through 2030 

Gov. Gretchen Whitmer (D) of Michigan signed legislation extending the state’s Historic Tax Credit (HTC) through 2030. 

S.B. 54 allows a qualified taxpayer with a certificate of completed rehabilitation issued after December 31, 2020 and before January 1, 2031, to credit against the income tax or Corporate Income Tax (CIT) 25 percent of the qualified expenditures that met eligibility criteria for the historic rehabilitation credit under the Internal Revenue Code for the rehabilitation of a historic resource, according to a summary of the bill 

HUD Publishes 2020 Map Guide

HUD published its updated 2020 Multifamily Accelerated Processing (MAP) Guide, which becomes effective January 21, 20201. In addition to some reorganization and streamlining throughout, the updated MAP Guide includes:
• The integration of the Federal Housing Administration (FHA) Multifamily Closing Guide, previously a separate document;
• A new chapter specific to energy efficiency and FHA’s Green Mortgage Insurance Premium (MIP) program; and
• Expanded appendices that provide access to tools and forms.

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LIIF Announces $20 Million Bridge to Help Liquidity for LIHTC Developers

The Low Income Investment Fund (LIIF) said it has launched a $20 million COVID-19 LIHTC Developer Fee Bridge Initiative to support affordable housing developers facing liquidity challenges in the wake of the Coronavirus pandemic and ensuing recession. LIIF said in a press release that with a guarantee from the Community Investment Guarantee Pool (CIGP), the flexible capital would be available to fill gaps created when fees are stalled in phases of LIHTC development.

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