HUD PROPOSES RULE PROHIBITING ESCROWING OF TAX CREDIT EQUITY

Friday, October 9, 2009 - 8:00am

The U.S. Department of Housing and Urban Development (HUD) today released for public comment a proposed rule that would prohibit the escrowing of tax credit equity. The proposed rule would affect low-income housing tax credits, historic tax credits and new markets tax credits, among others, and would conform HUD’s Federal Housing Administration multifamily mortgage insurance regulations to a provision in Title VIII of the Housing and Economic Recovery Act of 2008.  The full text of the Federal Register notice can be found here. HUD will accept comments on the proposed rule until December 8, 2009.  Please tune in to the October 20 Tax Credit Tuesday podcast for expanded coverage of the proposed rule.