HUD is now accepting waiver requests for Fair Housing Act design and construction deficiencies in connection with Section 223(f) refinancings.
In August, HUD issued a memorandum outlining its new policy on Fair Housing design and construction violations. Under the new policy, HUD will view violations as occurring when construction is completed.
The change is important for multifamily owners, particularly when refinancing a property under Section 223(f). In the past, owners looking to refinance often had to make difficult and expensive repairs to comply with Fair Housing design requirements. A waiver for those repairs will make refinancing under Section 223(f) faster, easier, and less costly.
To qualify for a waiver:
- A property’s last certificate of occupancy must have been issued at least 2 years ago.
- PCNAs must still identify Fair Housing Act design and construction issues.
- The lender must file the waiver request.
- The change applies only to Section 223(f).
For multifamily owners, and the owners of older multifamily properties in particular, the ability to get a waiver opens a path to the lower-cost, higher-leverage, nonrecourse financing available under Section 223(f).
If you are looking to refinance your multifamily property, AGM can help.
Family-owned with over 30 years of experience, AGM has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.