Institute for Responsible Housing Preservation
Affordable Housing Preservation: New Balance of Power Paradigm
Thanks to all who participated in our New York program on January 22. As always, we had a stellar faculty and great attendees. Click here if you need another look at the conference material, and please join us soon at another 2015 program.
Attached please find a memorandum from Benjamin T. Metcalf, Deputy Assistant Secretary for Multifamily Housing Programs, concerning the delegation of waiver authority for portions of the Section 8 Renewal policy Guide.
This memo provides procedures important to the continued preservation of the HUD Multifamily Section 8 portfolio. It expands upon the Carol Galante memo of February 2010 whereby an owner could receive HUD's approval of a post rehab rent prior to closing. The new Metcalf memo delegates certain authority from HUD Washington to the Hub directors to provide many of the required waivers necessary to achieve the post rehab rent. One exception, however, is that a waiver of the HUD rent comparability study still must be obtained in HUD Washington with supporting information that the waiver is necessary due to the lack of time for HUD to obtain the study. This is welcome news as HUD generally has not been providing these waivers since January 1 of this year.
TO: IRHP Members FROM: Stephen J. Wallace
RE: H.R. 4146 DATE: July 14, 2014
H.R. 4146 was introduced by Congressman Erik Paulson (R-MN). The primary purpose of this bill is to eliminate limitations on distributions and to allow an owner access to residual receipts funds for properties processed under the Low Income Housing Preservation and Resident Homeownership Act of 1990, as amended, (LIHPRHA). President Obama’s Fiscal Years 2014 and 2015 budget proposals included the elimination of the distribution limitation. Senior officials of the U.S. Department of Housing and Urban Development endorse this concept and have communicated their support of H.R. 4146 to the House Financial Services Committee. IRHP and National Leased Housing Association continue to be at the forefront of this effort.
We are seeking co-sponsors for H.R. 4146, particularly democrats. H.R. 4146 is supported by a broad coalition of affordable housing stakeholders including for-profit and non-profit owners. An industry letter was sent to members of the House Financial Services Committee last w ek in support of H.R. 4146. We request that you contact your Representative and request that he/she co-sponsor this legislation.
Please contact IRHP Executive Director Linda Kirk or me if you have any questions.
FHA Low Income Housig Tax Credit Pilot Program Revisions Memorandum
Click here to access Memorandum from Theodore Toon, Director, Multifamily Development, HTD regarding FHA Low Income Housig Tax Credit Pilot Program Revisions.
RAD 2nd Component Conversions and the Continuing Resolution
The 2nd Component of the Rental Assistance Demonstration offered owners of Rent Supplement, Rental Assistance Payment, and Mod Rehab contracts the ability to convert the tenant-protection assistance that would have been issued at contract termination or expiration to long-term Project-Based Voucher contracts. This option was set to expire on September 30, 2013, but Section 149 of the Continuing Resolution (CR) that was enacted by Congress allows HUD to extend the 2nd Component of RAD through January 15, 2014 (the duration of the CR).
This extended authority allows owners and administering PHAs the opportunity to close out projects that were not able to close prior to September 30, 2013. Unfortunately, given the limited duration of this extended authority (paired with Notice timing and HUD processing requirements), as well as the limited availability of tenant-protection funds, HUD is not able to accept new prospective conversion requests during the CR. However, as Retroactive conversion actions rely on already-funded TPVs administered by a local PHA, Retroactive conversion applications that can meet all Notice requirements and submit a completed application by January 15, 2014 will be accepted.
Owners with contract expirations that fall within the period of the CR (October 1, 2013 through January 15, 2014) should reach out to their MF project managers to request short-term contract extensions, which will allow owners the time to apply for RAD if authority is granted through the FY14 Budget. If a contract extension is not desired, the MF project manager will proceed in requesting tenant protection vouchers for affected residents.
Any questions about this process can be directed to the RAD team at RAD@hud.gov.