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Department of Housing and Urban Development News Briefs - March 2024

The U.S. Department of Housing and Urban Development (HUD) published a housing notice Jan. 8 concerning the Green and Resilient Retrofit Program (GRRP) that provides added flexibility for grant and supplemental loan funds, as well as administrative changes. The GRRP makes loans and grants to implement clean energy strategies at eligible HUD-assisted properties. Housing Notice 2024-01 makes changes both for owners who received a GRRP award and to owners who will be selected in upcoming application periods. The changes allow more GRRP funds to be available during construction, updates the terms for surplus cash loans, provides specific guidance around the period in which owners need to purchase renewable energy credits if they rely on them to achieve a Leading Edge Qualifying Certification and more. The next round of GRRP applications is due March 28 for the Elements cohort.

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HUD published a housing notice Jan. 31 that explains the standards and conditions an owner must meet to attain HUD approval for a Housing Assistance Payments (HAP) contract bifurcation. Notice H-2024-3 also clarifies submission requirements and describes the processing of approving bifurcation requests. Bifurcation is the division of a project-based Section 8 HAP contract into two or more HAP contracts, a move considered in multiple scenarios. Among the scenarios is for a property that is so large that it requires multiple low-income housing tax credit (LIHTC) allocations, which requires subdividing the property into separate projects, each with a distinct ownership entity and HAP.

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Fannie Mae reported Jan. 25 it deployed more than $52 billion to support multifamily housing in 2023. Fannie Mae’s efforts in 2023 provided $6.6 billion in liquidity for multifamily affordable housing. The agency has committed approximately $4 billion to LIHTC equity investments since returning to doing so in 2018. 

Journal Category:

Department of Housing and Urban Development

Authors:

Novogradac

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