Earlier this week, the U.S. Department of Housing and Urban Development announced it will be rescinding the form of Annual Contributions Contract (ACC) that HUD had released to housing authorities this past May with instructions that the form of ACC would automatically become effective for housing authorities as each housing authority drew down their first installment of 2018 Capital Funds.

Housing Authority coalitions and lawyers within the affordable housing bar raised significant concerns with HUD over the summer concerning this new form and the lack of transparency that accompanied its development and release.  Some of the concerns are set forth in an alert recently posted by the Public Housing Authorities Directors Association.  Ballard Spahr lawyers, Amy Glassman and Courtney Hunter, participated in meetings with HUD leaders on these issues, as well.

This is a significant development for housing authorities and those who work with housing authorities in revitalizing the nation’s public housing stock. HUD has indicated they will initiate a process for updating the form of ACC and will seek comments from the public as part of that effort.  Ballard Spahr will continue to monitor the issue and keep you informed through the Housing Plus Blog.

 

 

The Federal Housing Finance Agency (“FHFA”) has proposed new single-family and multifamily housing goals for Fannie Mae and Freddie Mac (collectively, the “GSEs”) for 2018-2020.

For single-family housing, the proposed goals would require that the percentage of overall qualified single-family mortgage purchases for the GSEs be as follows: the Low-Income Home Purchase Goal would be 24%; the Very Low-Income Home Purchase Goal would be 6%; the Low-Income Areas Home Purchase Subgoal would be 15%; and the Low-Income Refinance Goal would be 21%. To meet these single-family housing goals, the single-family mortgages purchased must meet or exceed the benchmark level or the market level for that year.

For multifamily housing, the proposed goals would require that the GSEs purchase mortgages for multifamily properties (multifamily is defined as properties with five or more units) as follows: the Low-Income Goal would be 315,000 units; the Very Low-Income Goal would be 60,000 units; and the Low-Income Small Multifamily Subgoal would be 10,000 units. To meet these multifamily goals, the GSEs must meet these benchmarks outlined by FHFA.

FHFA’s website provides more details on the proposed goals, the timeline for submission of comments and a link to the Federal Register notice.  Comments are due September 5, 2017.