HUD Embraces Regulatory Flexibility to Encourage Preservation of Affordable Rental Housing
HUD's Office of Multifamily Housing recently issued guidance to create regulatory flexibility and encourage preservation of existing affordable multifamily properties. In two memos, Deputy Assistant Secretary (DAS) Ben Metcalf authorized changes in HUD rules which will ease the burden on property owners trying to recapitalize aging assisted properties and maintain their long-term affordability.
What is a property really worth? This issue inevitably arises in preservation transactions. To help answer that question, Metcalf issued a memorandum allowing HUD field offices to accept a lender's Multifamily Accelerated Processing (MAP) appraisal in lieu of a rent comparability study (RCS) for Mark-Up-to-Market transactions. To read more about these changes, read Ellen Lurie Hoffman's guest blog post over at the NHC Open House Blog.
