Affordable Housing Industry News


Fannie Mae Expands Declining Prepayment Structure Program

Fannie Mae Multifamily has announced it is expanding its offering of competitively priced fixed-rate mortgage loans that carry the option of a declining prepayment structure for 12-, 15-, 18- and 30-year loan terms. Eligible properties include affordable housing and all conventional properties with between 5 to 50 units.


HUD Announces First Housing Trust Fund Allocations

Several years after its inception, the Housing Trust Fund (HTF) is finally allocating funds to states in an effort to increase and preserve the supply of affordable housing for extremely low- and very low-income households, including homeless families, with 80% of the grants going to affordable rental projects.


Affordable Housing Industry Receives Good News from Washington

As 2015 came to a close, the affordable housing industry enjoyed two welcome developments from the federal government. The first is a fiscal year (FY) 2016 omnibus appropriations bill that was considerably kind to affordable housing, as many programs saw funding increases versus 2015. The second was the long-awaited permanent floor for the 9% low-income housing tax credit (LIHTC) interest rate, providing more equity and much-needed certainty for developers nationwide.


FHA Lowering Mortgage Insurance Premiums for Affordable Multifamily Housing

The U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) announced proposed changes to the fiscal year (FY) 2016 mortgage insurance premiums (MIPs) for select FHA multifamily insurance programs. The proposed changes are a result of FHA’s healthy multifamily portfolio (which currently has a historically low default/delinquency rate of 0.15%), its effort to simplify rate structures, and its commitment to providing affordable housing and promoting energy efficiency.


Assisted Living Conversion Program

On August 11, the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) released guidance that makes it possible to finance properties eligible under the Assisted Living Conversion Program (ALCP) using FHA mortgage insurance through the Sec. 223(f) and Sec. 221(d)(4) programs.


Harvard Report Details Stalled Momentum for Housing Recovery

In its recently released report, “The State of the Nation’s Housing 2015,” the Joint Center for Housing Studies of Harvard University paints a picture of a housing industry with its fair share of challenges, particularly on the single-family side. For multifamily housing, many positive trends continue, although affordability continues to be a major problem.


Ginnie Mae Announces Change to USDA Mortgage-Backed Securities Program

Ginnie Mae has announced that starting June 1, 2015, the maximum loan amount for USDA Sec. 538 loans that will be eligible for pooling into Ginnie Mae mortgage-backed securities (MBS) will be increased from 50% of total development costs to 70% of total development costs.


LIHTC Fixed Rate Legislation Proposed

On Feb. 26, U.S. Representatives Pat Tiberi (R-OH) and Richard Neal (D-MA) introduced a bill that would establish a permanent minimum rate for both 9% and 4% low-income housing tax credits (LIHTCs). The legislation would apply to buildings placed in service after Dec. 31, 2014.


HUD Issues Affordable Housing Clarifications

The U.S. Department of Housing and Urban Development (HUD) recently announced several updates to support its affordable housing programs. Included are both clarifications to existing policies and operational changes. All of the updates will be reflected in the revised Multifamily Accelerated Processing (MAP) Guide that is expected to be released in late February, 2015. Below is a summary of the initiatives:


HUD Proposes Streamlining Certain Public Housing Requirements

The U.S. Department of Housing and Urban Development (HUD) recently issued a notice proposing the streamlining of administrative regulations for public housing, housing choice voucher, multifamily housing, and community planning and development programs.