is expanding its pilot program to accelerate the financing of
Low-Income Housing Tax Credit (LIHTC) projects. In the
expansion, the FHA program will include new construction
and substantial rehabilitation under Section 221(d)(4) and
Section 220 programs. The program extension will eliminate
unnecessary reviews by establishing an effective process for
low-risk LIHTC transactions. Currently, the processing time for
a LIHTC project is approximately around 90 days; however,
under the revised program, processing times will be accelerated
to 60 days for the Standard Approval Process and 30 days for
the Expedited Approval Process.
The adjustments to the FHA pilot program encourage the
production and preservation of more affordable multifamily
housing communities. This is a positive step forward for the
industry as 30 percent of the FHA’s multifamily volume is
currently comprised of LIHTC transactions. Moreover, these
changes help the apartment industry move closer to the goals
set out in NAA’s Vision 2030 plan for developing 4.6 million
new units of apartment housing by 2030.
In addition to the changes that HUD is pursuing on REAC
and the FHA pilot program, the Department continues its
work to streamline and reform the Section 8 Housing Choice
Voucher (HCV) Program. At the 2019 NAA Advocate
Conference, Section 8 Reform was one of industry’s top
priorities for Lobby Day. To that end, NAA continues to work
with its affiliates and members to oppose efforts to make
voucher acceptance mandatory and engage HUD to offer
solutions that would incentivize owners and operators in the
private market to participate voluntarily. During Advocate,
NAA along with a diverse group of members provided HUD
with industry input at a pivotal time when the Department is
finalizing its legislative and regulatory priorities related to the
HCV Program. Examples of potential improvements include
establishing a uniform set of processes that PHAs must follow;
incentivizing rental housing provider participation with risk
mitigation funding and signing bonuses for new participants;
and providing prequalifying inspections to allow owners and
operators to turn apartments more quickly for new residents.
www.aamdhq.org
APRIL 2019
TRENDS | 35