WASHINGTON – Feb. 10, 2015
The U.S. Department of Housing and Urban Development (HUD) announced it will clarify existing affordable housing production guidance in a revised Multifamily Accelerated Processing (MAP) Guide. In an effort to streamline and synchronize HUD and low-income housing tax credit (LIHTC) developments, HUD’s organizational changes include a single-underwriter model, dedicated Rental Assistance Demonstration (RAD) teams and expansion of its Federal Housing Administration (FHA) LIHTC pilot to Section 221(d)(4). Clarifications to existing policies involve equity pay-in, bridge loans, identity of interest, subordinate debt, vacancy rates and broadened underwriting of developer fees.
The changes are effective immediately and will be incorporated into the revised MAP Guide, along with other affordable housing initiatives under development. HUD also plans to announce new affordable initiatives to its risk share programs this spring.
Tune into the Feb. 17 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – Feb. 2, 2015
In its proposed budget for fiscal year (FY) 2016, the Obama administration provides $49.3 billion for U.S. Department of Housing and Urban Development (HUD) programs, which is $4 billion more than the 2015 enacted level. The proposal includes $21.1 billion for the Housing Choice Voucher program and $10.8 billion for the project-based rental assistance program. It would also provide $50 million to convert approximately 25,000 public housing units to project-based rental assistance contracts under the Rental Assistance Demonstration (RAD) program.
WASHINGTON – Jan. 30, 2015
The U.S. Department of Housing and Urban Development (HUD) today published a Federal Register notice establishing interim regulations that will govern the Housing Trust Fund (HTF) and the formula that will determine how HTF funds are distributed among eligible grantees. Each of the states and the District of Columbia are to receive a minimum allocation of $3 million. Factors that determine allocation amounts are a state’s relative shortage of rental housing available to extremely low- and very low-income families; the relative number of extremely low- and very low-income renter households living in substandard, overcrowded or unaffordable units in a particular state; and construction cost adjustment factors.
Major regulation provisions include siting and neighborhood standards; income determinations; eligible costs and activities; project requirements; tenant and homeowner qualification requirements; other federal requirements; program administration regulations; and quality control provisions.
The HTF was established under the Housing and Economic Recovery Act of 2008 (HERA) to provide grants to state governments that would increase and preserve the supply of rental housing for extremely low- and very-low-income households and to increase homeownership for extremely low- and very-low-income households. HUD said it intends to open the interim rule for public comments once funding is available and the grantees gain experience administering the HTF program.
Tune into the Feb. 3 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – Jan. 26, 2015
The U.S. Department of Health and Human Services (HHS) last week issued its 2015 poverty guidelines, which the U.S. Department of Housing and Urban Development (HUD) will use to update its fiscal year (FY) 2015 income limits. The HHS 2015 poverty guideline for a four-person household increased by nearly 1.7 percent compared to 2014, so counties that adjusted their extremely low-income limits up to the poverty level in 2014 will likely see another increase of around 1.7 percent for 2015.
HUD anticipates that its FY 2015 income limits will be published in February. HUD delayed publishing its FY 2015 income limits, originally expected to be released in December, because of a change in the definition of an “extremely low-income” household, which is mainly used for setting admissions targets in the Housing Choice Voucher program. The change was made by the 2014 Consolidated Appropriations Act, and an extremely low-income household is now defined as one with an income that does not exceed the greater of the HHS poverty guidelines or 30 percent of area median income (AMI).
WASHINGTON – Jan. 20, 2015
The U.S. Department of Housing and Urban Development (HUD) today released “Understanding Whom the LIHTC Program Serves: Tenants in LIHTC Units as of December 31, 2012,” a compilation of demographic and economic data about the tenants of housing built or rehabilitated with low-income housing tax credits (LIHTCs). HUD worked with state housing agencies to collect data on ethnicity, disability status, family composition and age, household income, monthly rental payments and other facts.
Tune into the Jan. 20 episode of the Tax Credit Tuesday podcast for more information.