1. Midwest Lenders’ Conference July 6, Dan Sullivan, Acting Director Multifamily Production, HUD HQ

4. Affordable Housing Incentives
Higher leverage – loan ratios, more aggressive NOI assumptions
Priority processing
Relaxed technical requirements (e.g. timing of escrow funding)
Waivers

5. Why is it so complicated?
Multiple sources and types of financing
Long term FHA debt versus year Tax Credit structure
Statutory requirements – e.g. FHA first loan terms –vs- secondary loan requirements
Timing

6. What does HUD/FHA want?
To be recognized as a reliable and attractive capital source for the debt
Affordability – rents
Preservation – real estate
Consistency / standardization of national program
Application of the Golden Rule
Administrative efficiency (enforcement, low maintenance servicing)

7. Tax Credit Pilot Program & the 2016 MAP Guide
A huge success!
Pilot still “on the books”
Only exception to 3 year rule waivers (if had permit in place prior to Sept 30, 2014.)
New Construction/Sub Rehab version pending

8. 2016 MAP Guide LIHTC Changes
Incorporates changes from Ted Toon and Ben Metcalf memos from 2014/2015
Allow Equity Bridge Loans to be obligations by FHA Mortgagor Entity (with limits on recourse against project)
Relaxed “Pari Passu” funding requirements
Relaxed secondary financing restrictions (e.g., recordation, compounding)

9. 2016 MAP Guide LIHTC Changes/Clarifications
55+ exemption. Only available for existing projects (> 3 years) which do NOT have Project-based Section 8 (or other legacy deep-subsidy) age-restricted definitions.
Initial LIHTC Equity Pay-In requirement: 20% of Total Equity.
This amount may not be funded by a Bridge Loan.
Subsequent Pay-Ins may be funded by an EBL and are based on Net Equity.