Housing and Community Development (HCD) has recently approved new Uniform Multifamily Regulations with an effective date of November 15, 2017.

Changes to the 2017 UMRs include:

  • Adding flexibility to underwriting standards for debt-service coverage ratios.
  • Relaxing prohibitions to balloon payment loans by allowing exceptions.
  • Allowing “sandwich loans,” provided that HCD’s affordability provisions are senior to the senior loan and survive foreclosure.
  • Increasing allowable Developer Fees and Asset Management/Partnership Management Fees.
  • Changing Operating and Replacement Reserve requirements.
  • Allowing provisions for Scattered Site Projects.
  • Allowing Supportive Services Costs as eligible operating expenses (within described limits).
  • Establishing regulations to include Tribal Lands.

HCD will host a webinar on November 28, 1:30-4:30pm. Registration is now available.