HUD has announced the launch of the Multifamily Low Income Housing Tax Credit (LIHTC) Pilot Program in Notice H 2012-01. HUD first brought the pilot program to the attention of NAHMA members at our Fall 2011 meeting in Washington, DC.
The pilot was mandated by Public Law 110-289, the Housing and Economic Recovery Act of 2008, to streamline FHA mortgage insurance applications for projects with equity from the LIHTC program. The Tax Credit Pilot creates a distinct application platform and a separate processing track under the Section 223(f) program. The Notice describes the features of the Tax Credit Pilot, including underwriting criteria, eligibility requirements, application exhibits and the process for HUD application review. The Notice also extends the 3-year rule waiver for 1 year beyond its current February 2012 expiration date for tax credit projects that participate in the Pilot program.
A copy of the Notice may be found here: http://portal.hud.gov/hudportal/documents/huddoc?id=12-01hsgn.pdf