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Department of Housing and Urban Development News Briefs – August 2018

The U.S. Department of Housing and Urban Development (HUD) published a notice June 4 in the Federal Register announcing a 2.1 percent increase in the base per-unit statutory mortgage limits for the Federal Housing Administration’s multifamily mortgage programs. The effective date is Jan. 1, 2018. The notice is available at www.hudresourcecenter.com.

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HUD published June 20 in the Federal Register an advanced notice of proposed rulemaking seeking comment on possible amendments to HUD’s 2013 rule implementing the Fair Housing Act (FHA) disparate impact standard. The ruling seeks comments on whether any changes are appropriate following the Supreme Court’s 2015 ruling holding that disparate impact claims are cognizable under the FHA. Comments are due 60 days after the date of publication in the Federal Register. The notice is available at www.hudresourcecenter.com.

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HUD issued June 14 a set of frequently asked questions (FAQs) for blending the Section 8 and Rental Assistance Demonstration (RAD) programs. The document answers questions around the provision in the demolition and disposition notice PIH 2018-04. There are eight questions, as well as instructions on initial processing. The FAQs are available at www.hudresourcecenter.com.

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Ben Carson, HUD secretary, announced June 7 the first round of EnVision Center designations. The designations will be in 17 communities throughout the United States. EnVision Centers will offer HUD-assisted families access to support services to help them achieve self-sufficiency, including economic empowerment, educational advancement, health and wellness, and character and leadership.

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HUD announced June 11, along with the Justice Department and the Environmental Protection Agency, a consent decree with New York City and the New York City Housing Authority to resolve widespread issues of lead, mold, pest infestations and other inadequate housing conditions. Under the terms of the agreement, New York City will invest at least $1.2 billion to abate lead-based paint hazards in tens of thousands of public housing units and will correct a number of longstanding housing deficiencies including inadequate heating, failing elevators and a significant backlog of work orders. In addition, a court-appointed monitor will oversee the corrective action plan and will ensure compliance with the decree.

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Hunt Capital Partners announced $12.7 million in federal low-income housing tax credit (LIHTC) financing June 19 for the acquisition and rehabilitation of Pineda Village in Cocoa, Fla. The property provides 144 apartments in scattered sites throughout the city of Cocoa. Pineda Village is being converted to project-based Section 8 through the RAD program. Built between 1953 and 1965, Pineda Village comprises 64 buildings across 27 acres. Cocoa Housing Authority plans to renovate its entire housing stock of 327 apartments under RAD, with the renovation of Pineda Village being the first step. Once rehabilitated, Pineda Village will offer studio, one-, two-, three-, four- and five-bedroom apartments for families earning between 30 and 80 percent of the area median income. Cost for Pineda Village is $22 million. Renovation began in June and is scheduled for completion in June 2019. 

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Nixon Peabody announce June 20 the addition of Kathie Soroka, former HUD senior counsel, to the firm’s affordable housing and real estate practice in New York City. Soroka has experience with RAD, having been a key player in the development of the program’s structure while she served as senior counsel. She will focus her practice counseling developers, syndicators, housing authorities, public entities and other LIHTC stakeholders in navigating regulatory requirements in all types of affordable housing transactions and enforcement actions. 

Journal Category:

Department of Housing and Urban Development

Authors:

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