Transcript Risk Share FY14 Budget Proposal and Interim Small Building

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.
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UNDERWRITER MODEL
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ACCOUNT EXECUTIVE MODEL
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WORKLOAD SHARING
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STREAMLINED ORGANIZATIONAL STRUCTURES
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New 5 Region Field Structure
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Multifamily for Tomorrow Milestones
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HQ and Southwest Region launched under new model
Midwest Region underway
Southeast Region – spring/summer 2015
Northeast Region – summer/fall 2015
West – 2016
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Switching gears to…
Program Updates
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Promoting Energy Efficiency
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Better Buildings Challenge
Utility Allowance guidance
Benchmarking
New Capital Needs Assessment (CNA) E-Tool
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FHA Affordable Success
• FHA/MAP
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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.
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FHA LIHTC Volume 2010-2014
Firm commitments in FY14 more than double FY13
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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 www.hud.gov/rad
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202/811 Proposed Rule
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The Supportive Housing and Services for the Elderly and Persons with Disabilities:
Implementing Statutory Reforms proposed rule was published on October 9, 2014.
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The major provisions of the proposed rule are:
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Establishes the requirements and procedures for the use of new project rental assistance for
supportive housing for persons with disabilities;
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Allows project owners to use operating funds to service debt;
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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);
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Requires those who prepay to extend affordability restriction for 20 years;
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Outlines regulations that implement a new form of rental assistance called Senior Preservation
Rental Assistance Contracts (SPRACs);
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Modernizes the capital advance for supportive housing for persons with disabilities;
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Provides grant assistance for applicants without sufficient capital to prepare a site for a funding
competition; and
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Establishes the regulations for the Service Coordinators in Multifamily Housing program and the
Assisted Living Conversion program.
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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).
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Section 8 – Combining Contracts
Conditions:
Benefits:
• 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.
• 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
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8bb Transfers
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 HUDapproved 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.
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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
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Thank you
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