HUD Announces Affordable Housing Clarifications
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.