HUD selected 20 MAP-Approved Lenders for their Low Income Housing Tax Credit Pilot Program and is providing training to the group today (Friday, May 4th). The goal of this pilot program is to streamline FHA mortgage insurance applications for projects with equity from the Low Income Housing Tax Credit program. This pilot not only refines the existing MAP Guide Section 5.28 streamlined processing for tax credit deals, but also defines the new 223(f) refinance program allowing up to $40,000/unit in repairs and extension of the 3-year waiver rule for LIHTC properties. I previously wrote a white paper that explains how this streamlined process will apply for Section 5.28, and this looks like a good time to revisit the technical recommendations (found here).
On a personal positive note about the announcement, I was pleased to see that out of the 20 lenders selected for the program, 18 are current, returning, and happy clients. And for the 2 lenders that don’t routinely work with D3G on LIHTC projects, you really should give me a call!