HUD Proposes Rule Regarding Escrows
By Caitlin Jones
1 min read
Tax Credit Advisor, November 2009: The U.S. Department of Housing and Urban Development (HUD) is soliciting public comments by 12/8/09 on a proposed rule published 10/9/09 that would amend Federal Housing Administration (FHA) multifamily mortgage insurance regulations. The rule would eliminate the requirement that tax credit syndication proceeds be escrowed at the time of initial endorsement of an FHA loan, so long as all HUD-required cash requirements for closing are otherwise met. The rule would conform FHA regulations to a 2008 statutory change made for federal low-income housing tax credits, and extend this change to equity generated by federal historic rehabilitation and new markets tax credits.
