NAHMA HUD Update: HUD Publishes Notice Eliminating the "3-year rule"March 24, 2020
Dear NAHMA Members, Earlier this month, HUD’s Office of Multifamily Housing issued the Housing Notice below, titled “Revision of the Section 223(f) Policy Requiring Three Years of Post-Construction Sustained Occupancy”. Lamar Seats, Deputy Assistant Secretary for Multifamily Housing, mentioned this notice during his remarks at the NAHMA conference. 1. Revision of the Section 223(f) Policy Requiring Three Years of Post-Construction Sustained Occupancy. This new guidance allows for newly constructed or substantially rehabilitated projects to refinance under Section 223(f) without a three-year waiting period, revising HUD’s policy that applications for refinancing or acquisition of existing properties under Section 223(f) of the National Housing Act may not be accepted unless and until three years have passed since completion of construction or substantial rehabilitation of the property. This Housing Notice supersedes all previous guidance concerning the time elapsed between construction completion and the date of an application for Section 223(f) mortgage insurance, including the 2016 MAP Guide. Applications for refinancing of newly built or substantially rehabilitated properties will now be accepted as soon as properties achieve the applicable programmatic Debt Service Coverage Ratio (DSCR) for not less than one full month, and waivers are no longer needed.
The Housing Notice can be found HERE. |