HAC News: April 15, 2015
HAC News Formats. pdf
April 15, 2015
Vol. 44, No. 8
• House approves bills on QM and manufactured housing • USDA expanding Section 502 direct loan intermediary pilot • CDFI Fund offers bond guarantees, eases applications for some • RHS encourages processing Section 502 direct applications • RD’s Capital Needs Assessment guidance reissued • FHFA adopts rule prohibiting pass-through of NHTF and CMF costs • Study finds administrative fees for HUD vouchers do not cover costs • Report documents innovative financing for permanent supportive housing • GAO report on government programs’ overlap includes NMTC recommendations • HUD offers healthy housing awards • Upcoming HAC webinars cover HVAC, veterans
HAC News Formats. pdf
April 15, 2015
Vol. 44, No. 8
HOUSE APPROVES BILLS ON QM AND MANUFACTURED HOUSING. On April 14 the House passed H.R. 685, the Mortgage Choice Act of 2015, and H.R. 650, the Preserving Access to Manufactured Housing Act. Supporters say the bills would clarify provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and increase consumer options. The Obama Administration has threatened to veto both H.R. 685 and H.R. 650, saying both “would weaken key consumer protections and provisions” of Dodd-Frank.
USDA EXPANDING SECTION 502 DIRECT LOAN INTERMEDIARY PILOT. Nonprofits and public agencies can apply by May 13 to become intermediaries, which train and assist other nonprofits to package Section 502 direct loan applications. New intermediaries must work in specific states not covered by current intermediaries. For further information, contact Brooke Baumann, RD, 202-690-4250.
CDFI FUND OFFERS BOND GUARANTEES, EASES APPLICATIONS FOR SOME. Certified CDFIs or entities designated by certified CDFIs can apply by June 5 to become qualified issuers, and qualified issuers can apply by June 12 for guarantees under the CDFI Bond Guarantee Program. Contact CDFI Fund staff, 202-653-0421, option 5. Comments are due June 9 on an interim rule that would give the CDFI Fund more flexibility to approve a CDFI that is an affiliate of another CDFI for the Bond Guarantee Program only. Contact CDFI Fund staff.
RHS ENCOURAGES PROCESSING SECTION 502 DIRECT APPLICATIONS. RHS has told stakeholders, including HAC, that Administrator Tony Hernandez and USDA Under Secretary Lisa Mensah recently encouraged field staff to allocate adequate resources to process applications for Section 502 direct loans. The National Office has provided states with new tools for data analysis and management, and states are encouraged to partner with others as needed to speed loan processing and fully utilize FY 2015 allocations.
RD’S CAPITAL NEEDS ASSESSMENT GUIDANCE REISSUED. An Unnumbered Letter dated March 16, 2015 is substantially the same as a 2013 UL. It provides detail on developing a CNA, required for transactions involving USDA financed multifamily properties. Contact a USDA RD state office.
FHFA ADOPTS RULE PROHIBITING PASS-THROUGH OF NHTF AND CMF COSTS. No changes were made in the interim rule issued in December (see HAC News, 12/22/14) stating that Fannie Mae and Freddie Mac cannot pass to loan originators the costs of their National Housing Trust Fund and Capital Magnet Fund allocations.
STUDY FINDS ADMINISTRATIVE FEES FOR HUD VOUCHERS DO NOT COVER COSTS. Conducted byAbt Associates for HUD, the research included public housing authorities of all sizes in urban, rural, and suburban places. A draft report, Housing Choice Voucher Program Administrative Fee Study, says in 2013 the average cost of administering a voucher was $70.03 per month and the average fee from HUD was $51.64. Costs in the smallest PHAs (fewer than 50 vouchers) were 91% higher than in the largest PHAs (200 to 249 vouchers), even though rural labor costs were lower. Only 52% of the costs in those smallest PHAs were covered by fees. The report recommends a new formula for calculating fees.
REPORT DOCUMENTS INNOVATIVE FINANCING FOR PERMANENT SUPPORTIVE HOUSING. Creating New Integrated Permanent Supportive Housing Opportunities for ELI Households: A Vision for the Future of the National Housing Trust Fund, released by the Technical Assistance Collaborative and the National Low Income Housing Coalition, highlights state innovations in financing for permanent supportive housing for extremely low-income (30% of area median) households, consistent with recommendations in NLIHC’s report, Aligning Federal Low Income Housing Programs with Housing Need.
GAO REPORT ON GOVERNMENT PROGRAMS’ OVERLAP INCLUDES NMTC RECOMMENDATIONS. The Government Accountability Office’s 2015 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits(GAO-15-404SP) makes no new recommendations on housing programs. It suggests the CDFI Fund issue further guidance on how other government programs can be combined with New Markets Tax Credits; ensure adequate controls to limit the risks of unnecessary duplication and above-market rates of return; and ensure that more complete and accurate data are collected.
HUD OFFERS HEALTHY HOUSING AWARDS. Applications are due April 30 for awards in three categories: public housing/multifamily supported housing, public policy, and cross-program coordination.
UPCOMING HAC WEBINARS COVER HVAC, VETERANS. “A Practitioner’s Guide to Energy Star 3.0: HVAC (Part A)” will be on April 22 at 2:00 eastern (registration available soon) and “Access to Health and Homeless Services for Rural Veterans” on May 6 at 2:00 eastern. Both are free; registration is required. Contact HAC staff, 404-892-4824.