On August 23, the Office of Multifamily Housing issues Notice H 2013-25 entitled Updated Guidelines for Continuation of Interest Reduction Payments after Refinancing: “Decoupling,” as allowed by the National Housing Act, under Section 236(e)(2). The Notice establishes updated procedures for the optional continuation of Interest Reduction Payment (IRP) assistance when projects assisted under Section 236 are refinanced. Under Section 236(e)(2) the IRP subsidy may continue provided the owner enters into a new agreement for IRP and Use Agreement to maintain the project as a low-income housing resource.
This Notice applies to multifamily projects currently receiving IRP pursuant to Section 236, including all projects with mortgages insured or held by HUD and all State Agency noninsured projects. It does not apply to any former Section 236 project owned by HUD or sold by HUD from the HUD-owned inventory. This Notice supersedes Housing Notice 2000-8 except with regard to Section 236(b) transactions. Readers seeking guidance on Section 236(b) transactions should refer to Notice H 2000-08.
To view the Notice, please follow this link to the HUD page at nahma.org.