Legislative Updates

AHMA-PSW’s Affordable Housing News 7/18/19

July 18, 2019

The draft Multifamily Housing Notice, “Electronic Signature, Transmission, and Storage – Guidance for Multifamily Assisted Housing Industry Partners” has been posted to the “Multifamily Policy Drafting Table” for review and feedback. The content of the draft Notice pertains to occupancy policies and business operations of assisted multifamily housing properties. The draft Notice provides proposed guidance on acceptable procedures for use of electronic signatures, electronic transmission, and storage of documents and files. Please use this link to access the draft Notice. HUD is encouraging partners to review the draft Notice and submit feedback by August 9, 2019 to MFHDraftingTable@hud.gov
The OMB released the 2019 Single Audit Compliance Supplement last week. We have posted the compliance supplement on our website at https://singleaudit.org/supplement
The designated Annual Base City High Cost Percentages and High Cost Areas are effective January 1, 2019, for FHA multifamily mortgage insurance Firm Commitment applications and for amendments which have not been initially endorsed. The area multiplier is to be used for all locations in the state if only one city has been named in that state; if multiple cities are named in any state, the multiplier for the city closest to the location named in the Mortgagee Letter is to be used. Guam, the U.S. Virgin Islands, and the states of Alaska and Hawaii are Special Limit areas for which the High Cost Percentage (HCP) is 405%.
The 2016 MAP Guide established a base amount of $15,000 per unit to define substantial rehabilitation for FHA insured loan programs. The MAP Guide requires that this base amount be adjusted periodically based on inflation cost index changes. Accordingly, the 2019 base amount per dwelling unit to determine substantial rehabilitation for FHA insured loan programs is $15,933.
Tax reforms enacted in late 2017 created a new tax incentive known as Qualified Opportunity Funds, which invest capital gains into projects located in Opportunity Zones. To further promote Opportunity Zones, HUD is introducing incentives for property owners applying for certain loans with FHA multifamily mortgage insurance for properties located in qualified opportunity zones. HUD has designated specialized Senior Underwriters in each region of the country to process certain applications for FHA mortgage insurance for properties located in qualifying census tracts, which will be eligible for reduced application fees. Incentives announced under the Notice are available immediately, and interested applicants may contact their local HUD office for information on how to identify their eligibility.
HUD released information regarding the Calendar Year 2019 Basic Statutory Mortgage Limits for Multifamily Housing Programs. The dollar amounts in certain sections of the National Housing Act are the base per unit statutory limits for FHA’s multifamily mortgage programs and have been adjusted annually since 2004. The adjustment of the dollar amounts is calculated using the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U); the percentage change in the CPI-U is 1.9 percent with an effective date of January 1, 2019.
Here are 10 defects in each unit the REAC inspector is required to allow you to repair and not include in their report! Let’s be sure to take advantage of this by being willing and able to make these repairs! Remember, the inspector isn’t required to remind you of your ability to make these fixes – you must be proactive and offer/make the repair the moment they are spotted. Remove items blocking bedroom doors; Reset tripped breaker in panel box; Reset tripped breaker on garbage disposal; Turn on water shutoff valves; Plug in unplugged appliances; Install light bulbs to prove fixture is operational; Reconnect bathroom exhaust fans; Relight stove pilot lights; Rediscover missing stove knobs and install; Reassemble stoves pulled apart for cleaning.