Friday, August 20, 2010

HUD Final Tax Credit Rule for FHA Multifamily Loans Coming Monday.

Advance copy available Friday HERE (look in Federal Register on Monday as this link will likely disappear then).
This rule conforms HUD’s Federal Housing Administration multifamily mortgage insurance regulations to a provision in Title VIII of the Housing and Economic Recovery Act of 2008 that prohibits a requirement that tax credit sales proceeds be placed into escrow, at the time of initial endorsement, for assurance of project completion and to pay the initial service charge, carrying charges, and legal and organizational expenses incident to the construction of the project. This rule does not prohibit HUD from requiring escrows of funds for other purposes, such as for working capital. The rule also makes other changes to reduce burdens on the use of tax credits....A full discussion of section 2834(c) of HERA, the tax credit programs related to this rule, and the proposed rule can be found in the proposed rule at 74 FR 52354-52355.
Originally created and posted on the Oregon Housing Blog.

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