NAHMA HUD Update: HUD issues Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) NoticeNovember 3, 2016 HUD recently issued Housing Notice 2016-16, Policy for Amended and Restated Use Agreement for Multifamily Projects Subject to the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). The notice is available here . The purpose from this notice is provided below: Purpose
This Notice provides guidance on the circumstances under which HUD may consider amended and restated Use Agreements for properties assisted under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). Amended and Restated LIHPRHA Use Agreements may be considered for the purpose of incentivizing and facilitating prepayment and refinance or acquisition transactions to preserve the viability of these affordable properties. This Notice clarifies the circumstances under which a LIHPRHA Use Agreement may be amended and restated, the amendments that may be allowed, and the conditions that must be met in the proposed preservation transaction to be considered for approval.
This Notice also provides implementation guidance for the recent changes to the LIHPRHA statute that were made when the Fixing America's Surface Transportation (FAST) Act, Pub. L. No. 114-94 was enacted in December of 2015. These changes will allow for, after a determination by HUD that the statutory criteria has been met, the unlimited distributions of surplus cash from the project and for the release of all monies accumulated in a residual receipts account to an Owner upon request.
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