Have you heard about the Department of Housing and Urban Development’s (HUD) New Pilot to improve tax incentives for affordable multifamily housing construction?
This program streamlines the processing of FHA Section 221(d)(4) loans associated with new tax credit transactions. The New Pilot continues to expand the Department’s support of the Low-Income Housing Tax Credit (LIHTC) program, which is the primary source for developing new affordable housing units, preserving existing ones, and for encouraging private capital investment in affordable housing.
The New Pilot is particularly important for the affordable housing market since the amount of equity invested in many projects has been reduced due to lower corporate tax rates. This program increases the leverage available to LIHTC projects with an FHA insured mortgage and helps fill the gap in a project’s fund sources to make more projects financially feasible.
Furthermore, these changes will result in a streamlined loan application review process, given that HUD aims to issue their firm commitment within 30 days of an application’s submission and close within 60 days of the firm commitment. For more information about eligibility, expedited processing, and what is not applicable, download our quick reference guide.
As the FHA continues to expand its platform, our team aims to be your go-to resource for updated information. With a LIHTC transaction volume of over $1.7 billion in 2018 alone, we have the expertise and connections you need to meet your business objectives.
Download our LIHTC New Pilot guide.
Walker & Dunlop can help fund your affordable housing vision.