Multi-Housing News - September 2008 - (Page 50)

finance Housing Act Simplifies HUD New legislation holds promise of more efficient programs By Keat Foong, Executive Editor Washington, D.C.—The Housing and Economic Recovery Act of 2008 that was signed into law on July 30 contains myriad new provisions pertaining to multifamily programs administered by HUD. Where the HUD-administered Federal Housing Administration (FHA) programs are concerned, a lot of the changes have to do with streamlining processing for projects that are also funded by the Low Income Housing Tax Credit (LIHTC) program. “The National Association of Home Builders (NAHB) has long sought changes at FHA that would help facilitate the processing of FHA-insured loans that are funded by Low Income Housing Tax Credits. NAHB is pleased that the new housing bill includes a number of provisions that do just that,” says Claudia Kedda, director of multifamily finance at NAHB. “The bill addresses several similar issues related to using Section 8 project-based vouchers with LIHTCs,” says Kedda. Additional changes include reducing the costs of compliance reporting by eliminating duplicative requirements among programs, “another important goal for NAHB,” she notes. Kedda says NAHB is particularly pleased that the bill directs HUD to establish a pilot program to demonstrate the effectiveness of streamlining the review process for FHA-insured LIHTC projects. “We are hopeful that this pilot will result in permanent changes to how FHA approaches the processing of LIHTC applications,” she says. NAHB has compiled a comprehensive outline of the Housing Act’s various provisions. Following are some highlights of the items under the new law to do with administrative and procedural processes at HUD, the use of FHA loans with LIHTC, Section 8 project- and tenant-based programs, and the Section 8 Moderate Rehab program. LIHTC and FHA-Financed Projects According to the NAHB summary, the new law requires HUD, within six months, to implement administrative and procedural changes to make more efficient HUD’s approval of LIHTC and taxexempt bond projects which use FHA-insured financing. The law also requires HUD to consult with the IRS to take actions to simplify the coordination of rules, regulations, forms and approval requirements for the funding of FHA-insured tax credit projects. The new housing act eliminates the need for HUD to review the subsidy layering of LIHTC projects with FHA financing that already submit to subsidy layering review under the LIHTC application, says NAHB. And the HUD cost certification requirement is eliminated for FHA-financed LIHTC projects if the LTC is less than 80 percent. HUD is also now no longer able to require escrow of tax credit proceeds or posting of a letter for credit for FHA/LIHTC financed properties. Housing Law for the 2000s Housing organizations welcomed the landmark Housing and Economic Recovery Act of 2008 signed into law on July 30. Here are some of their comments. Sandy Dunn President National Association of Home Builders “This milestone bill contains several provisions to get home buyers back into the marketplace, stop the slide in home prices, provide a lifeline to borrowers facing foreclosure, improve mortgage liquidity and bolster confidence in Fannie Mae and Freddie Mac. We commend Congress and the President for taking this action to provide much-needed relief to the American people.” Jim Arbury Senior Vice President of Government Affairs National Multi Housing Council/National Apartment Association “We commend Congress for including provisions to expand and restore liquidity to the federal tax credit program to support the production of affordable rental housing […] Most importantly, we commend lawmakers for significantly trimming the superfluous homeownership incentives originally proposed for the bill […] Lawmakers also wisely rejected calls for a $15,000 tax credit for people who buy foreclosed houses […] Finally, we support provisions creating a new regulator for the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac.” Conrad Egan President and CEO National Housing Conference “This new law will usher in much-needed relief for the current foreclosure crisis and is critically important to helping keep families that are at-risk for foreclosure in their homes. In addition, the nearly $4 billion in emergency neighborhood stabilization funding provided will help ensure that communities with high foreclosure rates are able to recapture their former strength and vitality…NHC is also pleased that the regulations extend support to Fannie Mae and Freddie Mac. We look forward to working with the U.S. Department of Housing and Urban Development on the swift implementation of these regulations. Any delay would mean more families facing foreclosure, further unnecessary neighborhood deterioration and continued negative consequences for the economy.” 50 September 2008 | Multi-Housing News | Producer of Multi-Housing World

Table of Contents for the Digital Edition of Multi-Housing News - September 2008

Multi-Housing News - September 2008
Contents
Calendar of Events
From the Editor
Executive Insight
Property Management: Growth Plans
Development & Design: Low-Rise Trends
Market Pulse
Special Report: Green Design Makes 'Cents'
Market Report: Boston
Top Architects List
Finance: HUD
Products: Cabinetry
Tech Report: Internet Listing Services
NMHC Notebook
Property Showcase: Fitness Center

Multi-Housing News - September 2008