Welcome 1 Southern Mortgage Advisory Council. 2 Firm LIHTC Project commitments in FY14 Doubled those in FY13 FHA LIHTC Volume 0.417.

Slides:



Advertisements
Similar presentations
NIFA AFFORDABLE HOUSING INNOVATION MARKETPLACE BIG PLANS FOR SMALL COMMUNITIES USDA RURAL DEVELOPMENT Section 538 Guaranteed Rural Rental Housing Program.
Advertisements

What Happens to Low-Income Housing Tax Credit Properties after 15 Years? September 12, 2012.
Neighborhood Stabilization Program (NSP) Orange County, Florida.
1 Rental Assistance Demonstration “RAD” Program Homes Within Reach November18, 2014 Martin Walsh Reno & Cavanaugh, PLLC.
HOME FINAL RULE Summary of COMPLIANCE Changes. HOME FINAL RULE Highlights of the Changes to the 2013 HOME Final Rule  Accelerate the timely production.
Preservation: HUD’s Re-Development Program Can be Part of Your Preservation Plan July 28-30, 2014 Hilton Hotel Austin, TX.
1 RAD P ROGRAM U PDATE – J UNE 2014 No. ProjectsNo. Units Total Active Public Housing CHAPs29038,173 Total Active Mod Rehab CHAPs7878 Closed Public Housing353,184.
Florida Housing Coalition Annual Conference Preservation of Affordable Housing September 27, 2011.
Tax Exempt Bonds 1 Bonding 101 – Tax-Exempt Bonds as a Way to Finance Your Projects Vince O’Donnell, Vice President of Affordable Housing Preservation.
Loan Execution Panel Discussion
Nebraska Investment Finance Authority © 2007 Tax Credit Basics.
Affordable Housing & the 223(f) Low- Income Housing Tax Credit (LIHTC) Pilot Program Recent Updates and Highlights Prepared by Laura Stutzman, Senior Underwriter.
Office of Multifamily Housing Update to NCSHA Housing Institute Priya Jayachandran Acting Director, MF Program Administration Ofc January 15, 2015.
RENTAL ASSISTANCE DEMONSTRATION RAD RAD 101 AND PROGRAM UPDATE 6/9/20151.
FHA Refinance of Borrowers in Negative Equity Positions.
Joe Crisafulli, Boston Hub Director NCSHA Conference 10/20/14 1.
Affordable Housing Preservation Summit An Overview of Financing and Servicing Options. Wells Fargo Bank Reine Yazbeck.
Year 15: Nonprofit Transfer Strategies for Expiring LIHTC Properties Supportive Housing Network of New York May 5, 2009 Presenters: Gregory Griffin, Director,
Multifamily Financing Programs Jim Weglarz Assisted Projects Session Manager of Business Development, Multifamily Finance December 3-4, 2012.
FHA L OW I NCOME H OUSING T AX C REDIT P ILOT P ROGRAM SMAC Conference May 30,
FHA Lending & RAD Susan Hall, CEO of HCM Sheri Davis, Deputy Chief UW of HCM July 30, 2014 Highland Commercial Mortgage
The Low Income Housing Tax Credit Program
Tax Credit Pilot Case Studies Midwest Lender’s Conference – June 2013.
Changes to HOME Rule Housing Summit 2014 Dan Puccetti, Laurie LindenDill and Debbie Davis, Presenters.
CRISSY NMLS # Presentation for Real Estate Professionals Only HECM for PURCHASE.
1 Green Initiative & Green Refinance Plus Fannie Mae Multifamily October 12, 2011.
9/19/ PRIVATE LETTER RULING (“PLR”)©
HOME Update: Match, Utility Allowance, Subsidy, Income, Rent, and Homeownership Value Limits Slide 1.
The American Recovery and Reinvestment Act of 2009 Low-Income Tax Credit Provisions Beth Mullen March 5, 2009.
Rental Assistance Demonstration. This is RAD 2 ACCSection 8 At closing, funding is converted to a Section 8 contract rent.
Acquisition / Rehabilitation Credits. Basics To be eligible, an existing building must be purchased with adherence to the related party and 10 year rules.
Tax Exempt Bond Options In North Carolina. Two Tax Exempt Bond Programs – Acquisition/Mod-Rehab Deals FHA 223(f) LIHTC Pilot – New Construction/Substantial.
Department of Housing and Community Development Mobilehome Park Rehabilitation and Resident Ownership Program (MPRROP).
Rental Assistance Demonstration Lessons Learned Midwestern Lenders Conference October 14, 2015.
RAD-All the Latest News! Texas Housing Conference July 28-30, 2014 Hilton Hotel Austin, TX.
General Guidelines- Apply to all Types of 232 Single Asset Mortgagor/Borrower Non-Recourse: Property = Security Interest Rate: between Mortgagee/Mortgagor.
FHA Tax Credit Equity Pay-In Requirements for All Low Income Housing Tax Credit Projects Introduction to The New Tax Credit Wheelbarrow Module Validating.
Loan Sizing/Eligible Debt Handbook Chapter 3. Topics Covered  Loan sizing benchmarks per Section 232 Program  Eligible mortgage costs included in 232.
Tax Exempt Bond Options In North Carolina. TAX EXEMPT BOND PROGRAMS MODERATE REHABILITATION DEALS  Fannie Mae/Freddie Mac  FHA 223(f) LIHTC Pilot NEW.
Lessons Learned: Dispositions & Improving Organizational Execution in Year
Rental Assistance Demonstration (RAD) Overview
Compliance Challenges in the RAD Portfolio June 22, 2017
Agenda Introductions Overview of Tax Exempt Bonds
Getting Your HUD Deal Closed (On Time!)
Legal Issues Impacting Nonprofit Properties Financed with LIHTCs
Affordable Housing Finance and GSEs
Preservation Strategies at Year 15: Issues and Options
Oklahoma Housing Finance Agency
Shaun K. Smith, Senior Director, Targeted Affordable Housing
U.S. Department of Housing & Urban Development
Office of Financial Assistance
Financing Solutions for the Illinois Housing Market
MidWest Lenders Conference September 27, 2017
Rental Assistance Demonstration (RAD) Update
Midwest Lenders’ Conference July 6, 2016 Dan Sullivan, Acting Director Multifamily Production, HUD HQ.
Cutting Edge Financing Options for Affordable Housing:
Federal Financing Bank Participation
Midwest Regional update: LIHTC Pilot and RAD
WMAC Conference September 18, 2017
AFFORDABLE HOUSING DEBT FINANCING
Using LIHTCs to Preserve Rural Affordable Housing
National Housing & Rehabilitation Association Summer Institute
LIHTC Basics: Affordable Housing 101
RAD Program Overview.
Investor Sentiment.
Midwest Lenders Annual Conference
Portfolio transactions – Case study
The American Recovery and Reinvestment Act of 2009 Low-Income Tax Credit Provisions Beth Mullen March 5, 2009.
Working with HUD as a Lender
Rental Assistance Demonstration (RAD) Mod Rehab and Public Housing
Presentation transcript:

Welcome 1 Southern Mortgage Advisory Council

2 Firm LIHTC Project commitments in FY14 Doubled those in FY13 FHA LIHTC Volume 0.417

Increase FHA’s Affordable Housing Production Implement HERA’s Pilot Program Mandate Through Accelerated Processing Compatible with Tax Credit Program Requirements Outcome: Complete FHA Loan Processing in 120 Days, from Application to Closing P ILOT P ROGRAM O BJECTIVES & O UTCOME 3

Assisted Housing: Acquisition and/or Refinancing with Mod Rehabilitation for Developments with 90% Project Based Rental Assistance (Including RAD Projects) 3 Year Rule Waiver Projects: Permanent Financing of Stabilized, Newly Built or Substantially Rehabilitated Projects Resyndications: Permanent Financing And Moderate Rehabilitation of Stabilized Tax Credit Projects Being Resyndicated with New Tax Credits Projects Without Prior Tax Credits or Section 8 Meeting Special Conditions, on Waiver Basis Continued 4 T RANSACTION T YPES : 4

All Have Tax Credit or Bond Cap Allocations (Either 4% or 9% Credits Accepted) or Acceptable Substitutes All Are Comparatively Low Risk Projects, Meeting Sustaining Occupancy Requirements All have Section 8 Contracts (90%) or Tax Credits and Actual Rents at least 10% Below Market O THER P ROJECT R EQUIREMENTS 5

All Are Eligible for 223(f) Loan Program, With Certain Pilot Adaptations : Rehab Expenditures of up to $40,000/unit (unadjusted for locality) allowed Davis Bacon Wage Rates not Required by HUD as long as FHA Loan does not fund more than standard 223(f) Limits, and as long as the project is not a RAD Project. O THER P ROJECT R EQUIREMENTS 6

For Rehabs, SOME 221(d)(4) Substantial Rehab controls have been adopted 223(f) 12 month repair period can be extended Tenants remain in place except for temporary 30 day relocation O THER P ROJECT R EQUIREMENTS 7

Program Rules Refinement (FAQs, Document Updates, January Letter & MAP Guide) Pipeline Status: o Lenders with Projects 31 of 52 o States with Projects 34 o Concept Meeting Held 140 Projects (14 RAD) o Housing Units affected 15,915 Units o Approved by Committee & Firm Issued 49 Projects o Closed 43 Projects o Average Days to Close 103 o Project Types by % of Total: 3 Year Rule 26% Section 8 53% o Resyndication 21% P ROGRESS TO D ATE 8

Program Rules Refinements Section 223(f) with LIHTC’s no longer limited to 92.5% on Total Private-Source Debt: Instead limited to 100% of total project cost (public debt excluded-with public debt can exceed 100% of total project cost, but must be fully subordinated debt) This requirement extends to all 223(f) LIHTC projects, whether they are Pilot Projects or not. 9

With an Identity-of-Interest between the Seller and Buyer, old MAP Guide treats project as a refinancing (Maximum LTV 80%). All 223(f) Tax Credit Projects can now be treated as an acquisition (Maximum LTV 85/87%). P ROGRAM R EFINEMENTS CONTINUED 10

20% of What Must Be Paid in at Closing? For all loans, 20% of the Total Tax Credit Equity must be paid in at closing. What counts as an “equity pay-in”? Funds provided by the sponsor or other upper tier entity. Equity can be funded in a variety of ways: Cash including equity installments paid by the investor(s), or binding, funded obligations not secured by the project (e.g. LOC or Bridge Loan) P ROGRAM R EFINEMENTS C ONTINUED 11

Post Closing: Funds in Rehab Escrow are to be Disbursed Roughly Pari Passu How is this controlled? Equity Pay-In Schedule (20% at closing, 30% at 65% completion, 45% at stabilization, 5% at 8609 or within 1 year.) Disbursement Agreements Provided by the Lender, Consistent with the partnership/LLC agreement, and Approved by HUD What projects does this apply to? All Tax Credit Projects E QUITY P AY I N 12

The Pilot Program originally required Completion Assurance in the Amount of 20% of Repair Costs This has been Reduced to 10% of Repair Costs It applies to Tax Credit Pilot Projects Only It can be in the form of Cash or an Irrevocable Letter of Credit P ROGRAM E NHANCEMENTS CONTINUED 13

F UTURE P ROGRAM D EVELOPMENT Continued Integration of Pilot with RAD. Recent Policy Development: Continued work on debt limit rules, IOI transfers, Equity Pay-In, Bridge Loans, etc.) This will be done through MAP Guide revisions. Future Expansion: FHA is Expanding the Pilot to include 221(d)(4) projects through technical analysis and demonstration projects in California. 14

Q UESTIONS ? Contact Local or Headquarters Staff Go to Tax Credit Pilot Web Page: ices/housing/mfh/map/maphome/taxcredit 15