Churchill Stateside Group, LLC (CSG), a real estate and renewable energy financial services company, today announced a new HUD streamlined process for FHA Section 221(d)(4) loans associated with new tax credit transactions. These changes will result in actions designed to speed the approval process and minimize review of the loan application by HUD personnel.
“Today, we take another important step to stimulate capital investment in affordable housing at a time when we need affordable housing more than ever,” said Secretary Carson in the Housing Notice. Average processing time is 90 days and under the FHA’s pilot the processing time is reduced to 30 days under the expedited approval track and 60 days under standard. New tax credit transactions that do not meet the expedited or standard pilot approvals will be processed under the 2016 MAP Guidelines and time frames.
Keith Gloeckl, CEO of CSG said, “We are very pleased with this announcement which will allow us to better utilize the FHA 221(d)4 loan product with our LIHTC developers where timing is critical.”
Qualifications and features of the pilot program are:
- 9% LIHTC new construction with loan to cost less than 65% and rents 10% below market.
- 4% or 9% LIHTC sub rehab with loan to cost less than 75% and at least 90% of the units project-based Section 8.
- Loan amounts $25 million or less.
- 200 units or less.
- Environmentally clean – HUD will accept the following findings with remediation plans: radon, asbestos, lead based paint, removal of intact underground storage tanks with no evidence of release and soil contamination, previously contaminated sites with no further remediation or no further action letters acceptable.
- 2530 flags must be cleared prior to application submission.
- Developer with experience on FHA insured and LIHTC deals
- 30 days from application submission to commitment.
- Targeted 60 days from commitment to closing.
Architectural plans/specifications and costs will only be reviewed by HUD staff for Civil Rights Laws, applicable accessibility requirements, and lead safety requirements.
Tenants cannot be out of their unit for more than nine months.
CONSTRUCTION LOAN ADMINISTRATION
Under certain circumstances, lender is delegated approval of construction draws, change orders, and release of initial operating deficit and working capital escrows.
For complete details on the FHA 221(d)(4) Pilot Notice please read the Housing Notice.
About Churchill Stateside Group
Churchill Stateside Group and its wholly owned affiliates (CSG) serve the affordable housing and renewable energy industries. CSG sponsors tax credit equity investment funds for institutional investors and provides a variety of construction and permanent financing solutions. With over $1 Billion under asset management, CSG has long-standing and successful investment relationships with numerous corporate investors and pension funds. The company’s investor and developer clients benefit from our experienced staff, prominent and proactive senior leadership, and attractive debt and equity platforms. The company, through its subsidiary Churchill Mortgage Investment LLC, is an approved USDA Rural Development and HUD/FHA MAP and LEAN lender and Ginnie Mae Issuer.
For more information, please visit http://www.CSGfirst.com.