TREASURY ANNOUNCES HOUSING FINANCE AGENCY INITIATIVE
The Treasury Department yesterday announced a new initiative for state and local housing finance agencies (HFAs) that, using authority provided by the Housing and Economic Recovery Act of 2008 (HERA), will provide hundreds of thousands of affordable mortgages for working families and enable the development and rehabilitation of tens of thousands of affordable rental properties. The Treasury Department the U.S. Department of Housing and Urban Development (HUD) developed the initiative with the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac. The initiative has two parts: the New Issue Bond Program (NIBP), which will provide temporary financing for HFAs to issue new mortgage revenue bonds; and the Temporary Credit and Liquidity Program (TCLP), under which Fannie Mae and Freddie Mac will provide replacement credit and liquidity facilities available to HFAs that will help reduce the costs of maintaining existing financing.
This initiative will be discussed during a new panel at Novogradac & Company’s 16th Annual Tax Credit Developers Conference on January 14 and 15 in Miami, Fla.