To enable these distributions, owners must be in significant agreement with their HUD business agreements (i.e.: A REAC greater than 60, a satisfactory or higher value at its last management and occupancy control, etc.). The HUD Office of Multifamily recently released the amended and adapted User Agreement for projects under the Low-Income Housing and Residence Promotion Act of 1990 (LIHPRHA). The notice relates to two points: first, it describes the circumstances in which huD may consider amended and adapted user agreements with respect to LIHPRHA and, second, it provides guidelines for the implementation of recent amendments that, in certain circumstances, allow for unlimited distributions of excess project liquidity and for the release at the request of an owner of all funds accumulated in an income account. residual. LIHPRHA use agreements that exist in these properties may restrict owner distributions and refinance revenues beyond the limits imposed by law. For example, some agreements limit owners to generating revenue from refinancing, while others prohibit the use of LIHTC`s equity. These restrictions impede the ability of owners to carry out refinancing or acquisition transactions. Many LIHPRHA properties are in need of repair. Homeowners can now try to prepay the FHA-insured mortgage and refinance their real estate with new forms of debt and equity, including the Low Income Tax Credit (LIHTC) to improve the project.
Previously, in both circumstances, owners were limited to a distribution of 8%. The result has been hundreds of thousands of homes converted from affordable to market prices. The federal government has implemented a number of strategies to prevent advances, including LIHPRHA. HUD currently monitors a fleet of approximately 640 properties of 75,000 units subject to LIHPRHA. These are most often residential residences with mortgages that are insured under Article 221 (d) (3) – (d) (5) below the market interest rate (BMIR), Article 221 (d) (3) of the market interest rate and Article 236. All LIHPRHA projects are supported, in whole or in part, under the Section 8 program. In the 1960s and 1970s, mortgage insurance programs funded the creation of thousands of properties with more affordable rents, in accordance with Section 221(d)(3) and Section 236. These federal housing administration (FHA) insured mortgages typically had a term of 40 years and gave homeowners the option to pay them after 20 years in advance….