HUD

The United States Congress has not been able to pass a bill to fund the government beyond September 30, 2013, resulting in a government shutdown. On September 27, the Department of Housing and Urban Development (HUD) released a “Contingency Plan for Possible Lapse in Appropriations” if Congress failed to pass the Fiscal Year 2014 Budget. It is unclear how long the shutdown will last or its full affects it will have on housing, but here are some of the major affects the shutdown will have on HUD and other federal housing programs.

The Internal Revenue Service (IRS) announced that it is waiving certain limitations for projects financed with Low Income Housing Tax Credits (LIHTC) or exempt facility bonds so that owners and operates across the United States can provide housing to victims of severe storms, flooding, landslides, and mudslides in Colorado that began September 11, 2013.

The U.S. Senate and House of Representatives Appropriations Committees have both approved the T-HUD Subcommittee versions of the fiscal year (FY) 2014 Transportation, Housing and Urban Development (T-HUD) and FY 2014 Agriculture and Rural Development funding bills.

HUD has released a Notice in the Federal Register to announce revisions to the Rental Assistance Demonstration (RAD) Program and to solicit comments on eligibility and selection criteria. The Notice proposes updates to PIH 2012-32, originally issued on July 26, 2012, which provided for full implementation of the RAD program.

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.

HUD has issued a notice announcing that mortgage insurance premiums (MIPs) for Federal Housing Administration (FHA) Multifamily, Healthcare Facilities, and Hospital mortgage insurance programs that have commitments to be issued or reissued in FY-2014 will remain the same as in FY-2013.

CohnReznick, Nixon Peabody, and the Pennsylvania Housing Finance Agency present the webinar “Utilizing 4% Credits in RAD Transactions” on Thursday, September 26 from 10:00 am-11:00 am EST. Presenters John Mackey (CPA, Partner CohnReznick), Susan Belles (Manager of Loan Programs, Pennsylvania Housing Finance Agency), and Michael Reardon (Partner, Affordable Housing Nixon Peabody LLP) will share their practical experience and insights in helping public housing authorities finance RAD conversions, rehabilitation, and new construction projects by integrating 4% tax-exempt bonds.

HUD recently released Notice H 2013-27 to all Multifamily Hub Directors announcing the annual base city High Cost Percentage (HCP) and High Cost Area revisions for 2013.

HUD has published its quarterly notice of all regulatory waivers that the Department has approved for the Office of Community Planning and Development, the Office of Housing ““ Federal Housing Administration (FHA), and the Office of Public and Indian Housing.

HUD recently published a Notice in the Federal Register establishing operating cost adjustment factors (OCAFs) for Section 8 Housing Assistance Payment (HAP) contract renewals.

The U.S. House of Representatives House Financial Services Oversight and Investigations Subcommittee recently held a hearing about reducing waste, fraud, and abuse at HUD.

HUD’s Office of Multifamily Housing recently published Notice H 2013-25 establishing updated procedures for the optional continuation of Interest Reduction Payment (IRP) assistance when projects assisted under Section 236 are refinanced.