Congress’ recent passage of the short-term continuing resolution to fund the government through Jan. 15, 2014, provided the Federal Housing Authority (FHA) with continued credit authority to close multifamily loans through that date and possibly beyond. Prior to the continuing resolution, FHA had reached the limit of its credit authority; Congress was unwilling to authorize additional authority, which disrupted a critical source of multifamily financing.
The U.S. Department of Housing and Urban Development asserts that FHA now has sufficient authority to respond to the backlog of commitments and to respond to commitment requests that were deferred. In a memo from Oct. 22 to multifamily HUB and field offices, Deputy Assistant Secretary for Multifamily Housing Ben Metcalf instructed staff to review the status of the applications that were submitted prior to the Sept. 17 credit authority expiration. He instructed staff to take new applications on a first-come-first-serve basis and only to grant priority to projects with Low-Income Housing Tax Credit deadlines.
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