HUD Tag Archives

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.

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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Continued Availability of COVID-19 Supplemental Payments for HUD-Assisted Properties

HUD’s Office of Multifamily Housing published Housing Notice (HN) 2020-11, opening a second application period for owners of Multifamily-assisted properties to apply for CARES Act supplemental funds to offset property expenditures to safely serve residents in light of COVID-19. The notice allows owners to submit payment requests for expenses incurred through November 30, 2020. Requests are due to HUD or the Contract Administrator by December 11, 2020,

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Dec. 10 Webinar – Ready to Respond: Disaster Planning for Multifamily Affordable Housing Organizations

Enterprise Community Partners (Enterprise), HUD, Fannie Mae, and Bellwether Enterprise are holding a webinar from 1:30 – 3 p.m. ET on December 10 to discuss their new Ready to Respond: Business Continuity Toolkit. The toolkit equips multifamily affordable building owners & managers with a plan to address crisis as many housing communities confront risks associated with natural disasters and other risks that affect tenants and business resiliency, such as COVID-19.

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Post-Election Legislative Landscape

The Senate returned this week and hit the ground running with Fiscal Year (FY) 2021 appropriations. Funding for the federal government runs out on December 11 and both Republicans and Democrats have stated their desire for full FY 2021 appropriation, as opposed to another short-term or long-term continuing resolution. A COVID-19 relief package and a tax bill are widely seen as the other must-dos during the lame-duck session. All three legislative vehicles provide opportunities to attach LIHTC priorities. We’ll continue to monitor the latest developments and engage our members when action is needed.

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