FHA Multifamily Mortgage Insurance Programs Back in Business
The Office of Management and Budget (OMB) certified to Congress on Friday evening, Dec. 19, that HUDís FHA programs are operating according to statutory requirements. OMBís actions will enable a significant number of multifamily affordable housing projects financed with low-income tax credits or tax-exempt bonds to proceed. Without OMB action, those projects could have been scuttled because they would have been unable to close loans.
The FHA program was temporarily in jeopardy when Congress, on Dec. 9, passed a provision requiring the certification notification. NAHB immediately worked with OMB, HUD and key members of Congress and their staff, with NAHB President Kent Conine contacting Acting HUD Secretary Alphonso Jackson and key OMB staff, to complete the process as quickly as possible.
In early December, the FHA multifamily mortgage insurance programs were shut down because HUD ran out of the authority it was granted in the continuing resolution to issue commitments for new loans.