Joe Crisafulli, Boston Hub DirectorNCSHA Conference 10/20/14

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Affordable Housing Preservation Update • Section 8 Renewal Guide Waiver Authority Delegation

– Purpose: Encourage and streamline affordable housing preservation.– Authority for 5 Waivers delegated to Hub Directors in field

1. Prohibition on for-profit participants- Chapter 15

2. Section 15-8 – Requiring lowering comparable market rent to reflect use-restricted rent levels.

3. Section 15-6.C.1. Post-rehab rents effective only at completion of the rehab.

Affordable Housing Preservation Update Continued• Section 8 Renewal Guide Waiver Authority Delegation

4. Section 15-5.B.2- Does not allow for early termination of pre-MAHRA contract.

5. Section 3-2.A.- Property score of 60 or above to be eligible for MUTM.

6. Section 3-7.F.1.d – Allows use of a Lender ordered MAP appraisal in lieu of a separate RCS for MUTM transaction using FHA financing. No waiver necessary per 8/28/14 guidance.

Section 8- More Preservation Tools

Combining Section 8 HAP Contracts- Guidance issued via memo on 9/18/2014 . Benefits: Lower administrative costs, consolidate oversight, shared reserves, better debt and equity terms and pricing.

Transferring Budget Authority (aka “Portage”) of PB Section 8 HAP Contract- Section 8(b)(b)(1) of U.S. Housing Act of 1937- Notice H14-14 was issued on 10/9/14.

Section 8 Pass Through- Used successfully in preservation scenarios where units planned for rehab are uninhabitable. Requires HQ approval.

CNA e Tool• Origin- 2010 President’s Domestic Policy Council policy alignment

initiative.

• HUD, USDA-RD & Treasury (LIHTCs via HFAs) use capital needs assessments (CNA)/physical due diligence in their programs.

• Interagency Rental Policy Working Group- incorporated feedback from multifamily stakeholders, including HFAs, recommended creation of a data standard and electronic template for CNAs.

CNA e Tool• CNA e-Tool is born. It is a suite of inter-related tools:

– Aligned electronic template incorporating a data standard for assessments.

– Creates automated process for preparation, review, submission, approval and periodic updating of CNAs

– Expected to evolve and improve to execute due diligence on asset acquisition/loan origination, RfR administration and periodic review of capital needs.

CNA e Tool Coming this Fall

• Initial version of CNA-e Tool is complete. HQ is working on guidance, training and rollout of the tool. Publication of the Notice is expected this fall.

• Will become the required standard for HUD and USDA for a number of programs.

CNA e Tool Roll-out• Roll-out will:

1. Introduce the tool and its support, training and technical assistance tools, etc.

2. Identify programs that will be required to migrate to CNA-e-Tool.

• Most likely: a. All Multifamily FHA applications requiring CNAs b. All RAD and M2M applications c. All Asset Management-required CNAs

Rollout, Continued3. Detail implementation schedule. Likely HUD will:

a. Begin accepting CNAs via the CNA-e-Tool and encouraging

lender’s use 30 days after Notice. b. Require use of CNA e Tool circa 180 days later.

•Stay tuned.Electronic template is available in 2 forms: Excel and Business to Government (B2G) interface (allows assessor firms/lenders to map existing templates to CNA e Tool). View these at HUD MF homepage:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh(See upper right under “What’s New”)

CNA e Tool – take aways

• Flexibility allows use in multiple programs at different agencies

• Each agency /program will need to develop some specific guidance conforming to their needs.

• The tool is free. Once it is rolled out it will be available on the HUD website.

Take Aways Continued

• HUD invites and encourages HFAs to adopt and use it as their standard CNA tool.

• We hope that CNA e Tool will become an industry standard used by multiple partners and encourage commercial add ons such as mobile apps.

• HUD looks forward to working with HFAs that are interested in utilizing CNA e-Tool

• THANK YOU- Questions/comments to CNAeTOOL@Hud.Gov

Geographic Expansion:

– Initial Selection of 4 Pilot Hubs, Expanded to 9

– Initial limit to Pilot Hub Jurisdictions, Expanded to Include Projects from all States

LIHTC Pilot Program Progress Check-in“The Heavy F”

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-- Processing System for Projects not In Pilot Hubs

Industry Expansion:

Lender Selection 4th Round Increased Pilot Lender firms from 37 to 52

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“The Heavy F” Continued

• Program Rules Refinement (FAQs, Document Updates)

• Projects In Pipeline (As of 9/8/14)o Concept Meeting Held 123 Projects/13,582

Unitso Closed 27 Projectso Pilot Hubs with Projects 9o Lenders with Projects 20 of 37o Average Days to Close 101 (Excludes Applicant Delays)

LIHTC Program Progress Check-in

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Continued Integration of Pilot with RAD

Recent Policy Development: More flexible rules on debt limits, IOI transfers, Completion Assurance and other matters posted on February 28th.

Future Expansion: Program adjustments expected on an ongoing basis, to be Included in 2014 MAP Guide Revision

LIHTC Pilot- Future Program Development

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