HUD’s director of Multifamily Development, Theodore Toon, recently issued a memo to provide guidance on Federal Housing Administration (FHA) and MAP Guide policy regarding age restrictions in FHA-insured housing. The memo notes that several inconsistencies and conflicts between various programs and policies related to seniors and age-restricted multifamily housing have been raised by lenders, owners, HFAs, members of Congress and HUD staff. Until official guidance is issued in the form of Mortgagee Letter or Housing Notice, HUD will administer the planned policy through the use of MAP Guide waivers, where appropriate.
HUD notes that FHA will exercise greater flexibility in the MAP Guide with regards to age restriction policies in affordable properties, including:
- FHA will grandfather affordable properties with current age restrictions and allow age-restriction regimes that may not be conforming to otherwise applicable FHA policy, whether the age restrictions are imposed by HUD, LIHTC, state, local, zoning, or affordable programs, as long as these properties meet both the relevant elderly use restrictions imposed by the applicable program, and comply with the Fair Housing Act. Properties may conform with the Fair Housing Act by not discriminating based on any protected class (including race, color, religion, national origin, familial status, disability, or sex), or if they exclude families with children under 18, by meeting a housing for older persons exemption to the Fair Housing Act (such as the 55+ exemption).
- Assisted, age-restricted properties that serve a mix of elderly and non-elderly disabled residents pursuant to a HUD regulatory agreement or other HUD requirement will be permitted to continue to serve their targeted populations, regardless of the type of mortgage insurance or direct loan or grant financing previously used.
- Affordable properties are defined as projects with Project-Based Section 8, LIHTC (new, or existing with at least 15 year remaining on the affordability use agreement), Section 202 refinancings, or “older assisted” FHA mortgage insurance programs such as Section 236 or 221(d)(3) BMIR.
The memorandum also directs all waiver requests to be submitted to HUD Headquarters for approval.
