The U.S. Department of Housing and Urban Development (HUD) is announcing today a sweeping set of new actions that will create and preserve high quality, affordable rental homes. These actions, announced in today’s White House’s Housing Supply Fact Sheet, reinforce the Biden-Harris Administration’s ongoing commitment to expanding access to affordable housing and improving housing stability across the country. These actions include two important updates for the Federal Housing Administration (FHA) Multifamily mortgage insurance program.
This email includes:
- HUD and Treasury Extend Section 542 Housing Finance Agency Risk-Sharing Initiative
- Utilizing Section 223(f) for Manufactured Home Community Program Mortgagee Letter Publishes to Drafting Table
HUD and Treasury Extend Initiative to Build and Rehabilitate Affordable Rental Homes for Low-Income Families
Today, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury (Treasury) announced that they will indefinitely extend the Section 542(c) Housing Finance Agency Risk-Sharing Initiative offered through HUD’s Federal Housing Administration (FHA) and Treasury’s Federal Financing Bank (FFB). The Risk Sharing Initiative provides a critical source of cost-effective capital for state and local housing finance agencies (HFAs) that supports the creation and preservation of high quality, affordable rental homes, and its extension will allow even more HFAs to participate in this important program.
Since the Biden-Harris Administration re-started the Risk Sharing Initiative in 2021, the program has already enabled access to nearly $2 billion in financing for the development or substantial rehabilitation of almost 12,000 affordable rental homes for low-income families, seniors, and persons with disabilities. FHA anticipates that approximately 38,000 additional affordable rental homes will be created or preserved through the initiative over the next ten years alone.
See the Press Release here.
Utilizing Section 223(f) for Manufactured Home Community Program Mortgagee Letter Publishes to Drafting Table
Today, the Office of Multifamily Housing Programs published Utilizing Section 223(f) for Manufactured Home Community Program (MHC) Mortgagee Letter to it’s Drafting Table web page. The proposed policy will permit applications for permanent financing processed under Section 223(f) for the purchase or refinance of manufactured home communities. Under the proposal, this financing would be available to borrowers that are states, units of local government, resident-owned manufactured housing communities, cooperatives, non-profit entities including consortia of nonprofit entities, Community Development Financing Institutions, Indian Tribes, and other entities approved by the Secretary.
This draft ML, FHA proposes, program features, underwriting criteria, eligibility requirements, application exhibits, and the process for HUD application review. Once finalized, this policy will promote stability and preserve affordability for individuals and families who own manufactured homes sited in existing manufactured home communities.
Access the drafting table to view the draft policy and provide feedback. Comments are due by March, 29, 2024.
A regulatory waiver of 24 CFR 200.24 has been granted to allow manufactured home cooperative borrowers to be eligible for the acquisition component of this program.
See the Press Release here.