HUD Considers NAHB Recommendations to 223(f) Waiver Program
On July 31, HUD announced an extension of the Section 223(f) three-year waiver program, which was instituted in February of this year. The waiver program makes it easier for multifamily developers to use Federal Housing Administration (FHA) mortgage insurance for the refinancing of existing properties.
Under normal circumstances, the Section 223(f) program provides mortgage insurance to refinance properties that have been operating for at least three years. Due to the economic conditions and constrained liquidity in the multifamily markets, HUD decided to waive the three-year rule for a period of six months.
NAHB applauded the waiver program, but noted some requirements and restrictions that are not normally required of Section 223(f) loans. NAHB sent a letter to then-FHA Commissioner Brian Montgomery asking that HUD reconsider some of these restrictions and to allow the waiver program for at least 18 months. HUD responded to NAHB’s letter positively and indicated it would consider our recommendations.
HUD eliminated the prohibition from participating in the waiver program on projects that previously applied for mortgage insurance under other HUD programs but withdrew their applications. Properties with a Certificate of Occupancy less than three years prior to the date of application for Firm Commitment are eligible for the waiver.
View the Waiver Notice here.
View NAHB's letter to HUD here.
View HUD's Response here.
For more information, e-mail Claudia Kedda or call her at 800-368-5242 x8352.
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