HUD has issued a Notice of Intent to conduct an Affirmatively Furthering Fair Housing program in the Baltimore, Maryland Standard Metropolitan Statistical Area (SMSA). The Agency will make available certain incentives to developers in order to encourage the production and availability of more affordable housing units in “communities of opportunity,” as defined in the Thompson vs. HUD settlement, in the Baltimore SMSA. Incentives being offered to developers include lowering the mortgage insurance premium (MIP) on FHA Section 221(d)(4) or Section 223(f) loans, lowering the occupancy/vacancy rate when establishing the project’s anticipated budget, and allowing greater or more frequent surplus cash distributions for projects that contain some specified number of affordable units. One of the major goals of the demonstration is to determine whether these incentives result in the availability of more affordable housing to low-income persons in a manner that reduces racial segregation and increases geographic and economic mobility.
HUD is accepting comments on this demonstration program until November 5, 2012 and is inviting comments on all aspects, but specifically solicits comments on the incentives, the criteria for receiving incentives, and seeks suggestions on specific parameters for these incentives and additional incentives that may be helpful in order to achieve the goals of the program. HUD also indicates in the Notice that if the incentives and demonstration program are successful, the program could be offered on a broader basis across the country.
Click here to read the Notice of Intent.
