Office of Multifamily Housing Update to NCSHA Housing Institute Priya Jayachandran Acting Director, MF Program Administration Ofc January 15, 2015

To effectively address the next generation of challenges in the housing market, HUD’s Multifamily Housing Programs is pursuing four initiatives as part of the Multifamily for Tomorrow transformation. UNDERWRITER MODEL 1 1 ACCOUNT EXECUTIVE MODEL 2 2 WORKLOAD SHARING 3 3 STREAMLINED ORGANIZATIONAL STRUCTURES 4 4 2

New 5 Region Field Structure 3

Multifamily for Tomorrow Milestones HQ and Southwest Region launched under new model Midwest Region underway Southeast Region – spring/summer 2015 Northeast Region – summer/fall 2015 West –

Switching gears to… Program Updates 5

Promoting Energy Efficiency Better Buildings Challenge Utility Allowance guidance Benchmarking New Capital Needs Assessment (CNA) E-Tool 6

FHA Affordable Success FHA/MAP Pilot enhancements and expansion to 221d4 Dedicated LIHTC teams Selectively reviewing Risk Mitigation policies MAP Guide revision FHA/Risk Share FFB Small Buildings Risk Sharing Initiative. 7

Firm commitments in FY14 more than double FY13 FHA LIHTC Volume

Rental Assistance Demonstration Cap lifted to 185,000 Initial applications for 180,000 units + $6 billion in capital repairs. Closed/converted 58 projects = 5,123 units Under 2nd component, more than half of RentSupp/RAP properties have converted. Monthly newsletter and case studies available at 9

202/811 Proposed Rule The Supportive Housing and Services for the Elderly and Persons with Disabilities: Implementing Statutory Reforms proposed rule was published on October 9, The major provisions of the proposed rule are: – Establishes the requirements and procedures for the use of new project rental assistance for supportive housing for persons with disabilities; – Allows project owners to use operating funds to service debt; – Creates allowance of a set-aside for a number of units for elderly individuals with functional limitations or other category of elderly persons as defined in the notice of funding availability (NOFA); – Requires those who prepay to extend affordability restriction for 20 years; – Outlines regulations that implement a new form of rental assistance called Senior Preservation Rental Assistance Contracts (SPRACs); – Modernizes the capital advance for supportive housing for persons with disabilities; – Provides grant assistance for applicants without sufficient capital to prepare a site for a funding competition; and – Establishes the regulations for the Service Coordinators in Multifamily Housing program and the Assisted Living Conversion program. 10

Section 8 Renewal Guide The Department is still reviewing and responding to the comments received on the Guide. There will be an extensive training program for staff on the Guide and on the intricacies of the Section 8 program. Other Section 8 news: – Issued a memo on substituting the MAP appraisal for the RCS in transactions involving Mark up to Market and FHA insurance. – Issued a memo on allowing the field to approve Chapter 15 waiver requests. – Issued a memo with a standardized checklist for reviewing a Rent Comparability Study (RCS). 11

Section 8 – Combining Contracts Conditions: Same ownership entity. Contracts must both qualify to be renewed under one specific MAHRA option. Plan in place to meet satisfactory MOR and REAC standards. Combined contracts are treated as one project for enforcement actions. Debt and/or equity providers facilitate transactions. Benefits: Potential for lower owner administrative costs. Streamlined oversight (e. g. one MOR, one audited financial statement). Potential to share reserves and facilitate a better capitalized property assisting a struggling property. Potential for superior debt and equity terms and pricing. NEW 12

8bb Transfers 13 Conditions : Transferring Owner and Contract Administrator must mutually agree to terminate the contract early and transfer all or part of the budget authority. Receiving property must have satisfactory MOR and REAC scores or have a HUD- approved plan in place to correct any deficiencies. The receiving property must be in a neighborhood with less than 40 percent concentrated poverty. The receiving property must meet environmental review requirements and FHEO site and neighborhood standards. Tenant notification and mandatory tenant meeting at the transferring property. Benefits: Preservation of limited Section 8 project-based rental assistance budget authority. Budget authority can be transferred to properties without an existing Section 8 contract. Potential portfolio-wide Section 8 “porting” to facilitate recapitalization and the best utilization of available budget authority.

Promoting Access to Mainstream Resources for Homeless Notice expands preference options for owners. Use homeless definition that suits community’s needs. Target veterans, chronic homeless, etc. Alternate selections between preference applicants. Technical Assistance for 10 DOEH Cities available 14

Thank you 15