Recent updates to HUD’s rules related to high-voltage power lines and fall hazards offer greater clarity for multifamily developers and could open more sites and projects to FHA-insured financing.
These changes create a more practical and developer-friendly path for evaluating risk on existing and proposed multifamily properties seeking FHA mortgage insurance while maintaining safety standards.
Under the new guidance, residential buildings must be no closer than 50% of the height of a free-standing tower. This replaces the previous “engineered fall distance” requirement with a straightforward, easy-to-apply standard and eliminates the need for an engineering report. Site improvements such as parking and access roads are permitted within power line easements and potential fall zones.
If a residential building falls within the 50% height area, the project may still be eligible for FHA financing if the tower meets certain ASCE design standards.
The updated guidance also excludes local electric service lines and common rooftop-mounted equipment, such as antennas, satellite dishes, and cell towers attached to the building itself, from regulation.
By reducing ambiguity, streamlining compliance, and providing greater flexibility for existing and planned multifamily projects, these new rules make FHA-insured financing more accessible and easier to use for owners and developers.
About AGM Financial Services, Inc.
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.