Department of Housing and Urban Development News Briefs - November 2020
The U.S. Department of Housing and Urban Development (HUD) published a notice in the Sept. 4 Federal Register announcing its desire to allow temporary uniform protocols for closing documents until after the COVID-19 pandemic subsides. The change would allow certain documents, which previously were required to be submitted as hard copies, to be submitted electronically. Comments on the proposal are accepted through Nov. 3.
HUD published a notice Sept. 18 amending Rental Assistance Demonstration (RAD) Notice Revision 4 concerning two issues related to the COVID-19 pandemic. HUD Notice H-2020-09 and PIH-2020-26 states that in obligating operating funds for a RAD conversion in the first calendar year for which a housing assistance payment contract is effective, the project may receive up to the amount provided in the Coronavirus Aid, Relief and Economic Security Act operating fund grant amount. The notice also provides flexibility in how public housing authorities conduct pre-RAD conversion meetings with residents until Dec. 31, 2020.
HUD published a final rule in the Sept. 24 Federal Register for HUD’s implementation of the Fair Housing Act’s disparate impact standard. The final rule includes changes to a proposed rule issued in 2019, such as an interpretation of the Fair Housing Act when in conflict with state laws regulating insurance, clarification of vicarious liability, provision and clarification of examples of acts that constitute discriminatory practices under disparate impact, and the implementation of a burden-shifting framework that more closely aligns with the Supreme Court’s decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project Inc. HUD received more than 45,000 comments on the proposed rule. The final rule became effective Oct. 24.
HUD published a notice in the Sept. 24 Federal Register designating difficult development areas (DDAs) and qualified census tracts (QCTs) for 2021 for purposes of the low-income housing tax credit (LIHTC). DDAs and QCTs are eligible for a 30 percent basis boost in LIHTC properties.
Dwight Capital announced Oct. 6 $340.7 million in financing during the month of September. The financing includes $88.7 million in Section 223(a)(7) loans, $82.3 million of interest rate reductions, $69.2 million of Section 223(f) loans, $55.1 million of Section 221(d)(4) construction loans, $33.6 million of Section 232/223(f) loans, and $11.7 million of bridge loans. Featured among the closings was a portfolio of more than $52.3 million in HUD Section 223(f) loans for Oakview Garden Apartments I & II in Falls Church, Va.