HUD’s Deputy Assistant Secretary for the Office of Multifamily Housing Ben Metcalf recently released a letter announcing that the agency has exhausted its $25 billion commitment authority limit allotted for fiscal year (FY) 2013 to operate its FHA Multifamily Risk Share and Healthcare programs. The agency notes that any firm commitment issued as of today will be honored, and may continue to move toward and through endorsement/closing. However, beginning today, and through September 30, 2013 (end of FY 2013), FHA will continue to accept and process new mortgage insurance applications for Multifamily and Healthcare programs, but will be unable to issue commitments. All transactions requesting commitment authority between now and the end of the fiscal year 2013 will be placed in a queue, behind other transactions in the queue. When HUD is given new commitment authority, either through FY 2014 Appropriations or Continuing Resolution, projects will be issued commitments in the order of the queue.
Click here to read the HUD memo.
