On March 8, HUD released a memo clarifying language found in the 2016 MAP guide. The MAP Guide enumerates securities for an equity bridge loan as a pledge of tax credits and/or limited partners’ or investors members’ interests in the project’s ownership entity. Questions subsequently arose as to whether a pledge of the general partner’s interest could also secure an equity bridge loan.
HUD’s memo, which is effective immediately, states that a general partner’s interest may also be pledged as security for an equity bridge loan. Elizabeth Arteaga, Housing Program Officer, Office of Multifamily Housing Production, is available for questions or comments on this matter at 202-402-3584 or Elizabeth.h.arteaga@hud.gov.
