FHA Issues Implementation of the Low-Income Housing Tax Credit (LIHTC) Express Lane Initiative for Multifamily Section 221(d)(4) New Construction Loans Mortgagee Letter
The Federal Housing Administration’s (FHA) Office of Multifamily Housing Programs issued “Implementation of the Low-Income Housing Tax Credit (LIHTC) Express Lane Initiative for Multifamily Section 221(d)(4) New Construction Loans Mortgagee Letter” that introduces a new, streamlined underwriting review and closing process for qualifying LIHTC transactions. With the launch of the LIHTC Express Lane, FHA is accelerating the delivery of new construction affordable housing units through its 221(d)(4) program and increasing the nation’s housing supply.
The new LIHTC Express Lane reduces unnecessary regulatory burdens and improves the speed and efficiency of FHA-insured production for more affordable transactions containing LIHTCs.
To be eligible for the Multifamily LIHTC Express Lane processing, the development team must be managed and controlled by an experienced LIHTC developer/owner with a demonstrated ability to successfully execute complex transactions through the development, construction, lease-up, and operating phases.
The launch of the LIHTC Express Lane advances Administration priorities to expand affordable housing supply, reduce costs for American families, and deliver more responsive, performance-driven federal housing programs.
This Mortgagee Letter is effective immediately for qualifying transactions.