HUD’s Office of Multifamily Housing issued two updates this week.
First, an interim rule that amends the regulatory language for PIH and Multifamily Housing rental assistance programs went into effect on March 12. The rule aligns the current regulatory flexibilities with those provided in the Fixing America’s Surface Transportation (FAST) Act. In addition, it extends two of the administrative streamlining changes that were adopted in 2016 for the Housing Choice Voucher and Public Housing programs to Multifamily programs.
Second, guidance was issued on March 8 clarifying language found in the 2016 MAP Guide. The 2016 MAP Guide states that an equity bridge loan (EBL) may be the obligation of the investor(s), the limited or general partner(s), or of the mortgagor itself, but may be secured with a pledge of tax credits and/or of limited partners’ or investor members’ interests in the project’s ownership entity. In response to questions raised by stakeholders, the Memo confirms that HUD will allow EBLs to be secured with a pledge of the general partner’s interest as well.