Department of Housing and Urban Development News Briefs - June 2012

Friday, June 1, 2012

Twenty lenders were approved to participate in the U.S. Department of Housing and Urban Development's (HUD's) Multifamily Low Income Housing Tax Credit Pilot program. The program is designed to accelerate the Section 223(f) approval process for the purchase or refinancing of low-income housing tax credit (LIHTC) properties. The selected lenders, all located within the jurisdictions of HUD's four pilot hub offices in Boston, Chicago, Detroit and Los Angeles, are P/R Mortgage & Investment Corporation, Red Mortgage Capital LLC, Prudential Huntoon Paige Associates LLC, Draper and Kramer Commercial Mortgage Company, Love Funding, St. James Capital LLC, Developers Mortgage Corporation, CW Capital LLC, Enterprise Community Investment Inc., Rockport Mortgage Corporation, Wells Fargo Multifamily Capital, Gershman Mortgage, Oak Grove Capital, Lancaster Pollard Mortgage Company, Oppenheimer Multifamily Housing & Healthcare Finance Corporation, PNC Real Estate, AGM Financial Services Inc., Forest City Capital Corporation, CBRE HMF Inc. and Berkadia Commercial Mortgage LLC.

***

HUD and New Orleans, La. officials cut the ribbon on the first 50 units redeveloped on the site of the former B.W. Cooper, the last of the "Big Four" public housing developments that Hurricane Katrina rendered uninhabitable. Twenty families, including five former B.W. Cooper residents, have moved into the development, which has been renamed Marrero Commons. Developers HANO, KBK Enterprises, McCormack Baron Salazar and the B.W. Cooper Resident Management Corporation are nearing completion on another 126 units. By July 2013, 410 redeveloped homes will serve nearly 300 low- to moderate-income households and 116 market-rate rental households. The property's rehabilitation was in jeopardy as a result of the economic downturn and subsequent construction delays, but that was before Congress passed an extension of the Gulf Opportunity Zone tax credits, allowing the redevelopment to continue. The estimated $160 million redevelopment received financing from multiple sources, including HUD, the state of Louisiana, city of New Orleans, U.S. Bank, HANO and the Federal Emergency Management Agency.

***

HUD awarded more than $56 million to 76 tribal communities through its Indian Community Development Block Grant (ICDBG) program. The grants are designed to help improve housing conditions for low- to moderate-income families, promote community development and spur local economies with construction projects and jobs. ICDBG can fund multiple community development and affordable housing activities, including rehabilitating housing, building new homes, or purchasing land to support new housing construction. Recipients can also use the grants to establish commercial, industrial and agricultural projects; build community and health centers; or start businesses to support the community. A list of the recipients and project summaries are available at www.hud.gov.

***

HUD in April issued a request for comments on a proposed rule regarding the eligibility and qualifications of underwriters and lenders participating in Multifamily Accelerated Processing (MAP) for Federal Housing Administration (FHA) loan applications. The proposals include codifying in regulations key provisions of MAP and introducing new provisions to strengthen it by assuring lenders' integrity and competency. The department issued a separate notice with additional information for FHA-approved lenders about its processes for determining underwriter and lender eligibility and qualification for MAP participation. HUD will accept comments on both the proposed rule and additional information until June 11. Copies of the notices are available at www.hudresourcecenter.com.

***

Red Mortgage Capital was the country's top lender of FHA MAP loans for volume activity through the first half of fiscal year (FY) 2012, according to Multifamily Hub FHA loan activity reports. The lender led by both dollar volume and number of transactions, which were $640 million and 58, respectively. Red Mortgage Capital was also ranked first in New Construction/Substantial Rehabilitation loans, first in 223(f) Refinance/Acquisition loans, and second in 223(a)(7) Refinances. By the end of calendar year 2011, Red Mortgage Capital was the nation's second most active lender, moving up from third during FY 2011.

Journal Category: 
Department of Housing and Urban Development