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Department of Housing and Urban Development News Briefs - November 2014

On Oct. 2, the U.S. Department of Housing and Urban Development (HUD) released a notice establishing the operating cost adjustment factors (OCAFs) for 2015. The OCAFs are for project-based assistance contracts for eligible multifamily housing projects that have an anniversary date on or after Feb. 11, 2015. The notice is available at www.hudresourcecenter.com.

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On Sept. 5, HUD announced lender selections for the fourth round of the Federal Housing Agency (FHA) low-income housing tax credit (LIHTC) pilot program. The pilot program provides a streamlined approval process for FHA-insured mortgage loans on LIHTC properties. A total of 15 companies were selected as lenders for the fourth round of the pilot program. As lenders, the selected companies have access to a full suite of multifamily loan products from affordable to market rate. More information is available at HUD's website.

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HUD, in collaboration with the Rockefeller Foundation, which promotes the well-being of humanity throughout the world, announced Sept. 17 the launch of a National Disaster Resilience Competition (NDRC). The NDRC is a two-phase process that will competitively award nearly $1 billion in HUD Disaster Recovery funds to eligible communities. The competition is designed to help communities recover from disasters and improve their ability to withstand and recover more quickly from future disasters, hazards and shocks. Applications for the first phase are due in March 2015. Successful phase one applicants will be invited to participate in the second phase. All states with counties that experienced a presidentially declared major disaster in 2011, 2012 or 2013 are eligible to submit applications. In addition, 17 local governments that have received funding under Public Law 113-2 are also eligible. The notice states there are 67 eligible applicants, and the Rockefeller Foundation will provide technical assistance and training workshops to every eligible state and local government. The list of eligible states, districts and communities is available at HUD's website. HUD expects to make final award announcements in late 2015.

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HUD released a proposed rule Oct. 7 entitled, “Supportive Housing and Services for the Elderly and Persons with Disabilities: Implementing Statutory Reforms.” The proposed rule would implement amendments to HUD’s supportive housing for the Section 202 program and the Section 811 program. Some of the amendments include the establishment of requirements and procedures for the use of new project rental assistance for supportive housing for persons with disabilities and the implementation of the enhanced project rental assistance contract and the allowance of a set-aside for a number of units for elderly individuals with functional limitations. Comments are due by Dec. 8. The notice is available at www.hudresourcecenter.com.

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On Sept. 19, HUD Secretary Julián Castro, U.S. Department of Agriculture Secretary Tom Vilsack, U.S. Department of Transportation Secretary Anthony Foxx and U.S. Department of Education Secretary Arne Duncan announced a competition to designate a new round of Promise Zones. Urban, rural and tribal communities will be invited to put forward a plan to partner with local business and community leaders to make evidence-based investments that reward hard work and expand opportunity. Any community meeting the qualifying criteria can apply for a designation, regardless of whether it previously received a federal grant. At least eight Promise Zones in urban, rural and tribal communities will be designated. Applications are due by 5 p.m. on Nov. 21. An accompanying notice was released Sept. 23, discussing the selection process, criteria and application submission process. The notice is available at www.hudresourcecenter.com.

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On Sept. 23, HUD Secretary Julián Castro announced more than $17 million in grants from the Assisted Living Conversion Program to owners of multifamily developments. These properties are located in six states and the grants will be used to convert a portion or all of the units into assisted living or service-enriched environments for seniors. HUD’s Assisted Living Conversion Program grants provide private, nonprofit owners of eligible developments with resources to convert some or all of the dwelling units in the project into an Assisted Living Facility (ALF) or Service-Enriched Housing (SEH) for elderly residents aging in place. Grant amounts ranged from $1.18 million to $3 million.

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On Oct. 1, HUD and the U.S. Department of Veterans Affairs (VA) announced the award of $57 million to support 8,276 tenant-based vouchers for rental units in the private market and $5 million for 730 project-based vouchers (PBV) for existing units or new construction in specific developments. The rental assistance is provided through the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program. VA Secretary Robert McDonald said in a press release that as long as there remains a single veteran living on the streets, there is more work to be done, and HUD-VASH vouchers are a vital tool in efforts to reduce veteran homelessness. The notice is available at www.hudresourcecenter.com.

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On Oct. 1, Red Mortgage Capital LLC (RED), the mortgage lending entity of Red Capital Group LLC, announced a partnership with Community HousingWorks (CHW) to provide debt financing for Azusa Apartments. The affordable housing property is located in Los Angeles County’s San Gabriel Valley, Calif. Sources of funding included an FHA Section 221(d)(4) mortgage of $16.5 million provided by RED, $12.1 million of 9 percent low income housing tax credit (LIHTC) equity and $1.5 million invested by CHW using resources from NeighborWorks America. Azusa Apartments provides 88 units of affordable housing to families of four in Los Angeles County who earn no more than 60 percent of the area median income. CHW also worked with HUD to renew a 20-year contract for 81 project-based Section 8 units. Anne Wilson, senior vice president for housing and real estate development at CHW, said in a press release that HUD financing provided the lowest interest rate available in the market, 40-year amortization, and maximum loan proceeds allowing CHW to complete its entire wish list of rehabilitation needs.

Journal Category:

Department of Housing and Urban Development

Authors:

Novogradac

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