multifamily finance 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 Housing Notice Extending Moratorium on Evictions for HUD Mortgages in Forbearance

On July 1, 2020, HUD published Housing Notice (2020-7), Coronavirus Aid, Relief, and Economic Security (CARES) Act Eviction Moratorium that extends the moratorium on evictions for all HUD-insured or HUD-held mortgages while under forbearance, and also provides guidance on tenant protections for multifamily properties not subject to forbearance and those with HUD-assisted units.

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Economic and Fixed Income Insights, July 9, 2019

US employers added 224,000 jobs in June, far surpassing the expected 160,000 gain, according to Bloomberg.  Prior to Friday’s report, the markets were bracing for a 25 basis point rate cut from the Fed at this month’s meeting.  Now, as Chairman Powell testifies before Congress Wednesday and Thursday, investors will be looking for any indication that the report might delay policy actions as officials remain data dependent. Long-term treasury rates are up week over week as investors moved to riskier assets on the strong jobs data.  The 10-year UST finished 9 basis points higher, while the long bond finished 4 basis points higher.  Municipals lagged behind treasuries and finished just slightly lower for the week.

Interest Rate Observations

 

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of July 9, 2019.

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. © 2019

HUD to Release RAD Revision 4 in June

HUD now expects to release the RAD revised notice (RADRev4) with modest changes to the public housing component and thorough instructions for the new RAD-for-PRAC authority in early to mid-June 2019. While waiting for RADRev4 there is plenty PHAs and their partners can do now to take advantage of recent flexibilities with RAD and other HUD preservation-redevelopment tools. 

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