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| 271st Edition: 3/2/2020-3/6/2020 |
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HUD Issues Anticipated 3-Year Rule Waiver
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HUD issued Mortgagee Letter 2020-03 on March 2 waiving the requirement that applications for refinancing newly constructed or substantially rehabbed projects must wait three years from issuance of a certificate of occupancy to qualify for a Section 223(f) refinance. This waiver applies to both market rate and affordable housing developments. It also allows cash out subject to usual 223(f) LTV requirements for the same. Specific underwriting for debt service coverage and other programmatic requirements are set forth in the Mortgagee Letter.
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Guidance for REAC Inspection Delays due to the Nashville Tornado
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Properties recently affected by the Nashville tornado event may qualify for REAC inspection postponement. HUD generally postpones all REACs in Presidentially Declared Disaster Areas for a period of time (typically 60-90 days) depending on the severity of the damage. PHAs and property owners interested in more information may reach out to their HUD Program Manager and request a postponement and should also contact REAC's Technical Assistance Center at 1-888-245-4860 to request a postponement by providing their Property ID and Inspection ID Numbers. Interested parties may access more information on HUD's natural disaster procedures at the link below.
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OIG Audit Highlights Impact of PBCA Litigation - Compliance Problems
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A recent OIG audit concluded that significant and lingering Section 8 compliance problems occurred during the five-year gap when HUD conducted few MORs. Between 2011 and 2016, HUD effectively suspended MORs due to the PBCA re-bid litigation and subsequent appropriations shortfalls. Contracting uncertainties negatively impacted PBCA operations and OIG speculated a number of owners ignored compliance responsibilities. Common owner violations included improper or unsupported subsidy payments, a lack of oversight over onsite staff leading to fraud and mismanagement in some cases, erroneous owner certifications, and tenant file and EIV deficiencies. OIG directed HUD to develop back-up compliance monitoring tools and enforce procedures to ensure proper subsidy payments.
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Felicia Hulit to Speak at Eastern Lenders Association Annual Conference
March 11-13, 2020
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R&C Attorneys will present on Year 15 and Year 30 LIHTC Strategies
March 18, 2020
R&C Member Matthew Greeson and Of Counsel Vonda Orders will present "Soup-to-Nuts: Year 15 and Year 30 Preservation Strategies, Structures, and Financing" at the Maryland Department of Housing and Community Development in Lanham, MD. As a part of the Housing Association of Nonprofit Developers' "Training & Capacity Building Series," this presentation will cover disposition, negotiating exit, and disposition strategies. Interested individuals may register for the series here.
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Lisa Tunick to Speak on HUD Contracting Pitfalls at LeadingAge Event
March 24, 2020
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HUD Releases Web Portal Consolidating Guidance Materials
Notice March 4, 2020
85 FR 12805
HUD announces the release of a web portal that consolidates all HUD-issued guidance onto a single web page. This new portal arises out of E.O. 13891, "Promoting the Rule of Law Through Improved Agency Guidance Documents," issued on October 9, 2019 which intends to prohibit federal agencies from creating new, binding requirements through their guidance documents. Visit the "HUDCLIPS" web page here.
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| For more information about the attorneys at Reno & Cavanaugh, please follow this link. |
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| Columbia, MD |
Washington, DC |
Nashville, TN |
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