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Department of Housing and Urban Development News Briefs - November 2023

The U.S. Department of Housing and Urban Development (HUD) published a notice Sept. 21 in the Federal Register designating 2024 difficult development areas (DDAs) and qualified census tracts (QCTs) for purposes of the low-income housing tax credit (LIHTC). LIHTC properties built in a QCT or DDA are eligible to increase their eligible basis by up to 30%. The notice designates DDAs for all states, the District of Columbia and four major U.S. territories (Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands). QCTs are based on income and poverty data released in the American Community Survey. The 2023 DDAs and QCTs are effective for LIHTC allocations made after Dec. 31, 2023, or for buildings financed by tax-exempt bonds that are placed in service after Dec. 31, 2023.

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HUD Sept. 13 announced it awarded approximately $18 million in grant funding and loan commitments under the Green and Resilient Retrofit Program (GRRP) to owners of properties participating in HUD-assisted multifamily housing programs. The awards will help fund upgrades for 28 multifamily properties with more than 3,400 HUD-assisted multifamily rental homes. The GRRP was funded under the Inflation Reduction Act to invest in energy efficiency, energy generation and climate resilience strategies in multifamily housing. Additional GRRP rounds will be awarded throughout 2023 and 2024. HUD published a notice in the Oct. 3 Federal Register seeking comment for an additional 30 days on its application forms for the GRRP. Comments on the application are due by Nov. 2.

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In October, HUD’s Office of Multifamily Housing awarded $160.1 million in grant funding as part of its fiscal year 2022 Section 202 Capital Advance funding opportunity. The grants are expected to build 1,262 homes for low-income seniors. The Section 202 funds go to nonprofits organizations to build or redevelop multifamily housing as well as rental assistance for low-income seniors.

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HUD published a notice in the Sept. 29 Federal Register proposing a collection of information for rental households and rental housing stock in areas that receive Community Development Block Grant–Disaster Recovery (CDBG-DR) grants. The research is designed to help improve disaster recovery effectiveness by providing information on how programs funded through CDBG-DR affect renters and homeowners and how disasters affect affordable rental housing stock over time. Comments on the proposal can be submitted through Nov. 28.

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HUD published a notice in the Sept. 22 Federal Register seeking comments on a proposal to reinstate the collection of Rental Assistance Demonstration (RAD) program application forms. HUD’s request seeks feedback that includes ways to enhance the quality, utility and clarity of the information collected. Comments are due Nov. 21.

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HUD introduced a new recorded training course in September for the RAD program. The training details implementation of resident engagements, including the requirement for additional resident meetings and required documents to be submitted in accordance with the 2023 RAD Supplemental Notice published in July. The changes to resident engagement requirements took effect Sept. 20.

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MDG Design + Construction in October unveiled the 82-apartment first phase of a multiphase, $116.7 million rehabilitation of Walter I.M. Hodge Pavilion in St. Croix in the U.S. Virgin Islands. The site is a RAD conversion and suffered significant damage in 2017 due to Hurricanes Irma and Maria. Goldman Sachs Bank invested in the 9% LIHTCs and solar investment tax credits, which the financier estimated to yield a tax credit equity investment of $27.6 million. MDG expects to completion the modernization by September 2024.

Journal Category:

Department of Housing and Urban Development

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