HUD Gets Ready to Launch FHA Tax Credit Pilot

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Tax Credit Advisor — December 2010 ““ The U.S. Department of Housing and Urban Development (HUD) is about to make further improvements to its Federal Housing Administration (FHA) multifamily mortgage insurance programs, including a new tax credit pilot program to roll out in the first quarter of 2011. The initiatives were described by HUD official Christopher Tawa, who spoke October 18 during the National Housing & Rehabilitation Association’s 2010 Fall Developers Forum in Boston. In the past year, HUD has taken a series of actions to cut processing times and mitigate financial risk in the FHA multifamily programs and to remove impediments to getting HUD-insured mortgages for low-income housing tax credit (LIHTC) projects. The Department has tightened underwriting criteria for FHA loans for market-rate and affordable multifamily projects, ended a previous requirement to escrow all tax credit equity at the time of closing, and eliminated duplicative subsidy layering and cost certification requirements.