HFA representatives from several states, NCSHA’s Garth Rieman, lenders, nonprofits, and HUD staff participated in an Affordable Homeownership Roundtable sponsored by HUD May 8 in Washington DC to discuss FHA’s mortgage insurance policies on affordable homeownership programs, including Community Land Trusts and deed-restricted properties. During the Roundtable, HUD outlined its plans to waive several current restrictions on insuring mortgages for properties with certain kinds of affordability protections.
HUD asked the participants for suggestions on how FHA could improve its affordable homeownership policies, including changes HUD could make in the short-term through administrative guidance and in the longer term through traditional rule-making, including a proposed rule, public comments, and a final rule. HUD said the short-term notice could be finalized over the next 3-6 months, while a regulatory change could take 18-24 months. HUD said it has no plans to modify its policies prohibiting FHA insurance on properties with affordability restrictions that survive foreclosure.
Roundtable participants discussed underwriting considerations, deed restrictions, recordation policies, approval and documentation requirements for agents of approved affordable housing providers, servicing deed-restricted or other affordable homeownership program loans, how to underwrite a government entity or instrumentality that wishes to purchase properties with FHA insurance, performance measurement, and data collection.
For more information, please contact Garth Rieman.