1 / 12

FHA Low Income Housing Tax Credit Pilot Program

FHA Low Income Housing Tax Credit Pilot Program. SMAC Conference May 30, 2013. Program Objectives & Outcome. Increase FHA’s Affordable Housing Production Implement HERA’s Pilot Program Mandate Through Accelerated Processing Compatible with Tax Credit Program Requirements

dionne
Télécharger la présentation

FHA Low Income Housing Tax Credit Pilot Program

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FHA Low Income Housing Tax Credit Pilot Program SMAC Conference May 30, 2013

  2. Program Objectives & Outcome • Increase FHA’s Affordable Housing Production • Implement HERA’s Pilot Program Mandate Through Accelerated Processing Compatible with Tax Credit Program Requirements • Outcome: Complete FHA Loan Processing in 120 Days, from Application to Closing

  3. Eligible Projects • All Have Tax Credit or Bond Cap Allocations (Either 4% or 9% Credits Accepted) • Projects in All States are Now Eligible • All Are Comparatively Low Risk Projects, Meeting Sustaining Occupancy Requirements • Tenants remain in place except for temporary (30 day) relocation

  4. Eligible Projects (continued) • All Are Eligible for 223(f) Loan Program, With Certain Adaptations for The Pilot Program: • Rehab Expenditures of up to $40,000/unit (unadjusted for locality) will be allowed • For Mod Rehabs, 221(d)(4) Substantial Rehab Controls have been Adopted • Standard 223(f) 12 month repair period can be Extended Note: Davis Bacon Wage Rates do not Apply

  5. Process Changes: How We Make it Work • Use MAP Lenders With Tax Credit Experience • Use Senior Staff Only (supervisors) as Designated Underwriters at Each of the Pilot Hubs • Revise Process – Not Linear with Multiple Experts, but all Review done by Designated Underwriter • Limit Underwriting To Only one FHA Program Adapted for Use with Tax Credits: 223(f)

  6. Process Changes: How We Make it Work (continued) • Hold Optional Concept Meeting (Lender/Owner and Designated Underwriter) Prior to Application, to Confirm Project’s Pilot Suitability or Refer it to Another MAP Program • Designate HQ Asset Management Point of Contact For: • First Mortgage Prepayments • Special Approvals and Waivers (e.g. Flex Sub) • Facilitate Section 8 Processing • HAP Contract Renewals • Section 8 Rent Increases

  7. Process Changes: How We Make it Work (continued) • Defer Submission of Plans and Specs Until Just Prior to Closing • Require Fewer Application Exhibits and Requirements (See Pilot’s Modified Exhibits Checklist) • Use One-Stage, ‘Direct-to-Firm’ Commitment Applications – No Preliminary Application Needed • Provide HQ Staff in MF Production to Track and Monitor Pilot Projects and Provide Ongoing Guidance

  8. 3 Transaction Types: Assisted Housing • Acquisition and/or Refinancing with Moderate Rehabilitation for Developments with Project based Rental Assistance Covering at Least 90% of Units • Owner must ask Asset Management for any desired rent increase prior to the submission of the application for processing under the Pilot • Owner must agree to enter into a new 20 year HAP Contract

  9. Transaction Types: Recent Construction or Rehab • Permanent Financing of Stabilized but Newly Built or Substantially Rehabilitated Projects • Projects Require a Waiver of the 3 Year Rule (Property must meet requirements of ML 2011-13, except owners will not have to show evidence that they have not been able to obtain alternative financing) • Projects must meet sustaining occupancy/reserve requirements of 3 Year Rule Waiver Notice • Equity Installments must Remain Outstanding up until time of FHA Loan Closing

  10. Transaction Types: Resyndication • Permanent Financing And Moderate Rehabilitation of Stabilized Tax Credit Projects Being Resyndicated with New Tax Credits • Projects must have achieved stabilized occupancy (at least 85% or greater occupancy for previous 12 months)

  11. Progress and Next Steps • In September 2012, 5 new Pilot Hubs added to Original 4 Pilot Hubs, Now including Atlanta, Boston, Chicago, Denver, Detroit, Fort Worth, LA, San Francisco and Seattle • Geographic Expansion also allowed Projects from All States to be Included. Projects not Located in Pilot Hub Jurisdictions are Assigned to and Processed in the Pilot Hubs • 12 new MAP Pilot Lenders Selected November 2012, bringing total to 32 • Third Lender Selection Round Underway

  12. Contact Information Project Documentation posted in MAP page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/map/maphome/taxcredit Questions? Please contact: Lynn Wehrli (202) 402-5210 Lynn.Wehrli@HUD.gov

More Related