WASHINGTON, DC-The 20 lenders selected to participate in a pilot program the US Department of Housing and Urban Development launched in February—the Multifamily Low Income Housing Tax Credit pilot—are set to begin training Friday. Once the session is complete, lenders will be qualified to start processing applications.
A HUD spokeswoman tells GlobeSt.com that any deals in these lenders’ pipelines that fit the program’s criteria can transfer to the pilot. She declined to comment what that amount may be.
One lender in the program, CWCapital, has about $50 million worth of transactions it hopes to transfer. “We have about six or seven loans and we expect to add more,” Ellen Kantrowitz, managing director and head of CWCapital’s FHA group, tells GlobeSt.com. “We plan to market the program to clients that have properties that meet the criteria.”
The program was included in the Housing and Economic Recovery Act of 2008. Its goal is to streamline FHA mortgage insurance applications for projects with equity from the Low Income Housing Tax Credit program. To this end, HUD has created a distinct application form and processing track under the section 223 (f) program.
Kantrowitz says that the pilot is a timely program given that more tax credits are becoming available as the economy recovers. This particular program is unique as it comes with section 223 (f) mortgage insurance—which offers some of the best interest rates in the market, Kantrowitz says—and has expedited execution.
Other lenders participating in the pilot are P/R Mortgage & Investment Corp., Red Mortgage Capital, Prudential Huntoon Paige Associates, Draper and Kramer Commercial Mortgage Co., Love Funding, St. James Capital, Developers Mortgage Corp., Enterprise Community Investment, Rockport Mortgage Corp., Wells Fargo Multifamily Capital, Gershman Mortgage, Oak Grove Capital, Lancaster Pollard Mortgage Co., Oppenheimer Multifamily Housing & Healthcare Finance Corp., PNC Real Estate, AGM Financial Services, Forest City Capital Corp., CBRE HMF and Berkadia Commercial Mortgage.
For more information about the program, visit this HUD webpage.
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