The Rural Housing Service (RHS) published an Unnumbered Letter (UL) to clarify allowable expenses to be paid by project income in Rural Development-financed Section 515 and Section 514 multifamily properties. The Agency had previously agreed to provide periodic reminders to program participants regarding allowable and unallowable expenses; also, this UL addresses questions received from State and Servicing Offices. To read the Unnumbered Letter online, please click here.
RHS published an Unnumbered Letter (UL) regarding changes to policies and procedures for establishing and maintaining supervised bank accounts of Multi-Family Housing properties. The Agency is relieving MFH borrows of certain problematic requirements within RD’s regulations governing Supervised Bank accounts that are no longer feasible in the commercial banking environment as a means of withdrawing reserve account funds, mainly due to current electronic banking operations. The Agency is no longer required to countersign approved withdrawals from reserve accounts, and MFH employees will no longer have to present their federal government ID to the bank as they will no longer be listed as an additional signer on the commercial bank account. In addition, borrowers are no longer required to obtain a collateral pledge if the amount of funds exceeds the maximum limit covered by the Federal deposit insurance. To read the UL and the new sample deposit agreement online, please click here.
In order to assist very low-income tenants and applicants at eligible properties, RHS has published an Unnumbered Letter (UL) providing States with guidance on reallocating Rental Assistance (RA) units currently held in the Administrator’s reserve back to the State in which the units originated. The UL also allows States to use RA when properties are paid in full henceforth. The RA units being reallocated are from properties that left the program via acceleration, foreclosure sale, natural maturity, or prepayment during fiscal years 2017 and 2018. Attachments to the UL provide the number of RA units available per State currently in the Administrator’s reserve. To read the UL and attachments online, please click here.
Revised Procedures for Submitting Form HUD 9807:Mortgagee Letter 2018-07, published yesterday, provides updated guidance on the submission of form HUD 9807, Insurance Termination Request for Multifamily Mortgage, for obtaining prepayment approval for multifamily rental housing loans. This is a revision to Mortgagee Letter 2004-21, dated June 15, 2004. Currently, the form is submitted by mortgagees for prepayment approval to the Office of Finance and Budget’s Multifamily Insurance Operations Branch. To expedite the review and approval process, mortgagees will submit the form to the Office of Asset Management and Portfolio Oversight (OAMPO) to a newly created mailbox: FAMD9807Processing@hud.gov. Please contact Walter D. Wynn at (202) 402-2231 if you have questions.
The Arizona Department of Housing (ADOH) has posted its second draft of the 2019 QAP on its website. ADOH will accept written comments on the second draft of the 2019 QAP until Monday, October 22, 2018. Interested parties may also attend the Public Hearing on Friday, October 19, 2018 to provide comments. Please download the Information Bulletin for additional information.
The July 2018 CTCAC round was the first opportunity for users to submit an application using the new CDLAC/TCAC joint online application. The new application was well received with a combined total of 21 joint application projects receiving CDLAC allocation at the July and September rounds. In response to feedback received from users, we’ve made revisions to the online joint application that were effective beginning September 17, 2018. Descriptions of these revisions can be found here. Please continue to forward your related comments and suggestions to TCAC (Gina Ferguson at email@example.com) or to CDLAC (the general CDLAC email firstname.lastname@example.org).